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| | Post New Topic | | Blessings of small trading account for the novice traders - trading CFDs | Views: 336 | | Mar 31, 2017 12:31 pm | | Blessings of small trading account for the novice traders - trading CFDs | # | 
Sandy Smith | | Forex is very larger than the stock market. People often trade in a forex with a larger account without knowing the perfect way to trade. But you have to remember this when you are trading with a large account more money is at stake. This market is volatile and changes rapidly. If you make a trade and for example, you do not set the stop-loss, you could end up losing all your money in Forex.
If you are a billionaire or millionaire and thinking to open a Forex account with a large sum of money, you do not have to read this article. But if you are like a general people like us, you should thank the Forex system for letting you enter the market with so little amount of money.
Benefits of small trading account
You should and must start your Forex career with a small account. It will not only help you to save your money from losing, it will also help you to develop strategy and planning for winning your trades. You may think about opening a large account and making a bigger trade, but you should practice in a small account. It has many benefits than large accounts in Forex.If you see the professional traders who are trading CFDs for long period of time then you will notice that every single one of them started with a small trading account.Once they mastered the true art of trading they started trading with decent investment with professional brokers like Saxo which has wide range of financial asset for the professional trader accessible from a single trading account.
Figure: Versatile Financial instrument offered by Saxo
Take small risk: Small Forex account means there is a small risk. In Forex, if you have a large account, you will end up in losing money. The bigger your account, the more money you will lose. If you placed a trade before going to sleep and when you check the trade and you found that you have forgotten to use the stop-loss, your account will be empty. If it is a 10$ dollar account, you will lose only a few bucks. So, think about losing money before opening a big account.So if you trading CFDs for the first time make sure that don’t get fully invested since you need to learn first before making money.
Practicing to trade: You might be a new trader but you can always practice in a small account. You can also use demo account for trading CFDs. But when you are using real money, your center of focus will not be the same as online money. Even if you think you can afford to lose a big sum of money, open practice in a small account. Practice taking a bigger risk in the small account before you open a big account take the risk there. This is how the Asians especially the Singaporean are doing so well in the forex industry within a short period of time.
Step to open a large account: many successful Forex brokers who are trading with their hundred thousand dollar accounts, they also started their trade with a small account. If you think you want to open a large account as soon as possible and have the ability to afford the loss, open a small account and trade for a month. The market condition might want to change your mindsets. If you are making money, you can always open a large account. But do not close that small account. Trade with different new currency pair in that small account.
In summary, Opening a big account in Forex is not a very wise decision unless you are a true professional in trading. You do not want your money to lose more than 50 percent of deposit in the first months of trading. Even if you are experienced make sure that you chose the most reputed brokers in the world like Saxo before making a large deposit.
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