Why Do Most New Forex Traders Fail? Because They Ignore Leverage

For every $50,000 in their account, most professional forex traders and money managers trade one standard lot.

If they traded a mini account, this indicates that for every $5,000 in their account, they trade one mini lot.

Allow that to sink in for a couple of moments.

Why do less experienced forex traders believe they can succeed by trading 100K standard lots with a $2,000 account or 10K micro lots with $250 if professionals trade like this？

Never open a “regular account” with only $2,000 or a “micro account” with $250, no matter what the forex brokers tell you.

Some even allow you to start an account for as little as $25!

The number one reason rookie traders fail is that they are undercapitalized from the start and have a poor understanding of how leverage works.

Don't put yourself in a position to fail.

Before opening a normal account, $10,000 for a mini account, or $1,000 for a micro account, we recommend that you have at least $100,000 in trading capital.

Of course, you should only open an account if you are consistently good.

Open a small account if you only have $60,000 to invest. Open a micro account if you only have $8,000 to invest.

If you just have $250, start with a demo account and remain with it until you acquire the additional $750, at which point you can switch to a micro account. Find a job if you only have $1.

Remember what you just read above if you don't remember anything else from this lesson.

Okay, please read the previous paragraph again and memorize it. Just because you may start an account with just $25 does not mean you should.

This is why:

We believe that most new traders who register a forex trading account with the smallest deposit do so because they are unfamiliar with the phrases “leverage” and “margin” and how they effect their trading.

It's critical that you understand the importance of trading with leverage and are not in the dark about it.

We promise that you will BLOW YOUR TRADING ACCOUNT if you don't have a firm grasp of leverage and margin.