12-20-2011, 09:14 AM
Join Date: Dec 2011
Originally Posted by Peterw
So are you saying I should have used stops? And that not using stops = overleveredging which is unprofessional?
What he's saying is: |
"Most professional traders and money managers trade one standard lot for every $50,000 in their account.
If they traded a mini account, this means they trade one mini lot for every $5,000 in their account.
Let that sink into your head for a couple seconds.
If pros trade like this, why do less experienced traders think they can succeed by trading 100K standard lots with a $2,000 account or 10K mini lots with $250?
No matter what the Forex brokers tell you, don't ever open a "standard account" with just $2,000 or a "mini account" with $250. Heck, some even allow you to open accounts with just $25.
The number one reason new traders fail is not because they suck, but because they are undercapitalized from the start and don't understand how leverage really works.
Don't set yourself up to fail.