Why start Forex trading?

Forex trading is one of the most viable options for someone who's looking at bigger possibilities, bigger profit and greater ease in trading and business. Because of it's high liquidity and speedy transactions, forex trading is becoming a popular game among players in the field of business and marketing. While it's traditionally for companies and corporations with big capital and experience in the field, it has also proven itself to be a good venture for a neophyte though what one calls a Mini Forex account or mini forex trading.

Mini Forex Basics

Mini Forex trading is good for people who have just started in the forex market and with not enough funds to open a regular account. It requires a smaller capital compared to regular forex accounts, a minimum of $300. With mini forex trading, you can control a $10,000 currency position.

The key here is leverage. Because of leverage, a trader can trade in a commodity more than the money available in his account. Say with a $250 deposit, one could trade a maximum of 5 mini lots. This kind of leverage is greater than stocks or day trading. Of course, it is recommended to start with a manageable leverage that allows greater flexibility in transactions.

What are the perks of mini forex trading? With just a small stake involved, you get to enjoy free trading platform and benefits that regular forex traders get to enjoy. These would include state-of-the art trading software, charts and resources. With a leverage of 200:1, the trader can trade in a commodity regardless of the amount of money available to him.

Mini forex trading also allows for lesser losses as the contract size is only 1/10th the size of a standard forex account. There is also greater flexibility with regards to customizing trades and minimizing risks. Ideal for those with smaller capital, the trader has a chance of investing in more areas of the market with lesser risk as there is lesser capital to be lost. He need not be hesitant with his transactions as there is lesser capital involved.

With the same freedom enjoyed by regular forex traders, a mini forex trader can trade as many lots as he likes. Although the standard trade size is 10,000 units, you are free to trade as much as 50,000 units or more. In this way, the trader also builds up his confidence in his trading skills at the same time slowly increase his profit and trading position in the market. He gets to manage his money before going for the higher stakes in regular forex trading.

The trader likewise gets to develop a sound trading strategy without getting too emotionally involved in possible losses and profit. For practice, a newbie in forex trading can practice through paper trading. But in the real market, he can start small with mini forex trading. There is lesser capital involved and the practice builds up the trader's trading gameplan for future explorations in regular, higher stakes forex trading.

Exams coming up, gotta study, Forex on hold until November

My final exams are coming soon and I am busy studying for it. I have to put my Forex trading on hold until 10 November.

This goes to show how flexible earning money from FOREX is. I can trade anytime I want. If I am busy, then I can always trade another time.

I hope I have inspired some of you to trade FOREX. But do note that it carries a very high risk. If you are not ready for it, please do not attempt to trade forex. I have been studying the FOREX charts for 2 years already. Perhaps you can follow my footsteps.

No investments yet

I have not made any trades yet as I am still fine tuning my strategy. Expect my first trade to be around late december.
However, my account has grown slightly by USD2. The interest rate is quite high.

In forex, it is important to paper trade first, so that you do not suffer.

DEPOSITED INITIAL CAPITAL

I have deposited the initial capital of USD2000 with a FOREX broker.

My target is to earn USD 1,000,000 by DEC 2008.

A short info of my trading plan:

400 pips/month, 20pips/day

Purely mechanical trading.

Detailed strategy will be posted soon.

Why I chose to invest in FOREX market?
- it is the most liquid market with 3.2trillion trading volume
- small capital can earn explosive profits with proper leverage and money management
- 24hrs market, I can trade any time I want
- fully automated dealing, no need to call broker
- no broker commissions only small spreads