When it comes to forex market retailers, one of the biggest differences with trading firms and professional traders is that they enter the Forex market with minimal capital and usually continue to trade for months and years with the same capital. The same difference is, of course, a fundamental difference, creates deeper and more profound differences in the approach of all three groups (retailers, business firms, professional traders) relative to their position; the profound differences that are realized at the end of this article, they do not have the ability to cope with mathematics. What does it mean? We will explain later.
Trading on the Forex market with the lowest possible capital / Know the reality
As one of the most experienced and reputable multinational brokers in the world, ITBFX has no intention of stopping you from dealing with world markets, but you have to know the difference between trading with a $10 million and $1,000 Forex account. The average transaction account of retailers or retail traders in the US is $ 2000, and in other countries, it is probably less than that. But why? Why is the average retailer trading account not more than $ 2,000 in most countries around the world?
The question is more than one correct answer, but the most important reason is not just in Iran, where in most countries, Forex is presented as a “making money overnight” scheme. By whom? By people trying to get your money from any way they can get from you. However, it is quite true that you can get rich faster than other ways of creating or acquiring wealth by trading with Forex market. One of the reasons for this is leverage, and the other reason is the fact that markets tend to retain their trend (whether bearish or bullish) for the long term and continue.
Benefits of trading in the Forex market with minimal capital
Let’s start with the benefits of trading with minimal capital. The most obvious advantage of trading with a small amount of capital is if you suddenly enter a transaction or close the trade, you don’t have to worry that the market will move against you. Market retailers are more flexible to open and close their transactions.
Another advantage is that, if you lose your accounts for any reason, you can’t claim to be bankrupt. Furthermore, an ordinary person with foreign exchange transactions can manage the loss of his transactional capital and return to the market again; however, he must examine his financial condition in every way possible. For example, if your net capital is 3,000 thousand dollars when you enter the Forex market and open a Forex account with $ 1,000, it will not be a minor issue to lose that $ 1,000.
Another advantage of having a short trading account is that you will receive more leverage from your broker. It has two aspects, first, that you can earn more with less capital (relative to your capital), and the second is that it is the most dangerous aspect of the case: high leverages often leads to greater losses.
But the disadvantages of trading with minimal capital
The trade with low capital has many disadvantages. The most obvious is that you don’t profit enough to value your time. Imagine that you are a lawyer or engineer who earn $100,000 a year, and if you have earned a total of $1,000 at the end of the year through Forex trading, is there a place to get excited? Certainly not. Of course, if you are patient generally, you’ll be surprised and happy with the results you get from this small business account, but most people are not very patient. That’s why most of those trading with low capital are facing a lot of problems because they don’t profit enough to focus on trading. That brought them too much into the trading and the use of leverage was too much for them.
Depending on how small your Forex account is, you may be unable to gain much interest in the fluctuating time frames. Because your Stop Loss or Stop Loss should be very, very low. On the other hand, traders with small trading accounts tend to overdo trading, justifying: “I make several trades to increase my capital and then trade cautiously.” Well, there is no need to explain what the consequences of this will be expected. Experience has shown that people who enter trading activities with minimal capital take more inaccurate transaction decisions. Even if fortune helps them to gain a favorable opportunity, greed will push them to excess in transactions, and last, all their accounts belong to the broker.
What is the solution to trading with minimal capital?
Obviously, with more capital, you can perform better. You have to look at this: If you profit 1 percent by a $ 10,000 forex account, in fact, you ‘ve actually got 100 dollars, much more likely to profit 10 percent by a $ 1,000 account. Therefore, one solution is quite clear: trade with more capital.
The way to build a larger Forex account is something most people don’t like to know and spend time. They like to go on with the same way they are doing and after they’ve lost their entire account, they say, “It’s all lies, frauds and tricks!” And it’s really easier for many to think like that. But when you ‘ve been with us here and have followed line to the bottom, you must have a lot of differences with these people, and you ‘re more likely to be looking for the truth and solution than anything that will be easier for you. So be careful:
You can develop your transactional account slowly, but always with the right trading, but you have to increase your capital and add to it. For example, you can add $ 100 per week or as much as you want. You can do it monthly and add $ 200 to your capital, for example. It is in this way that you will grow up and accumulate capital without any feeling of danger. This is also the problem for most traders in the global market; they do not spend enough time to build their accounts.
Transactional capital is very important.
So first you have to take care of your capital and then gradually increase it after you ‘re sure you can get a good profit from the global markets. We hope you ‘re not one of those people who think they can become millionaire with $300 Forex account, because the reality is that this will never happen. To become a millionaire in the Forex market, you must, you must, improve your account.
If you are still hesitant to be a professional trader for global markets, open a demo account without real capital, and work with the virtual capital provided by the ITBFX brokerage. In the meantime, study our numerous articles that are just like expensive training workshops, watch videos, follow ITBFX Instagram page. And then consultation with our trading experts, open your real accounts with the least amount of money to help you, gradually, but you must become a millionaire on global markets.