Forex Size. Dealing with most Forex brokers, as opposed to the ECN brokers, you have more choices. The ECN brokers require larger quantities traded because you are going into the deep end where the commercial traders and banks are playing. When you’re dealing with brokers that are the market makers, the choices of Forex size are numerous and can be used advantageously.
Start small
The adage of crawling before walking applies to learning to trade the Forex market, and many Forex brokers offer novice traders the opportunity to do so. Regarding Forex size, a broker can even provide a Forex micro-trading account for those who only want to deposit a couple of hundred dollars.
There’s nothing wrong with that approach; it can be a wise move. You are still trading the open Forex market, but it gives you more of a feel for the trading methods before you enter full force. Admittedly, your profit will be less than your risk and loss. The first thing to realize about Forex trading is that there will always be a loss.
Forex Size
Forex brokers also offer the next step up in Forex size, the mini trade, if you want to trade with more than pennies. Again, you’re not going to make your retirement on these trades, but it will get you comfortable with the platform and the procedures. You’ll build up your margin account and increase your quantities accordingly.
Even the seasoned trader may want to adjust his Forex trading size when trying out a new strategy or trading a Forex pair he’s unfamiliar with. So, he lowers his risk and allows him to change until he’s comfortable. Once he gets used to it, the transition to a larger Forex size becomes seamless.
Stay consistent
An essential factor in regards to Forex size is to remain consistent. Do not fluctuate and randomly throw around numbers and sizes. Your profit loss ratio will suffer when your trading is erratic. If you are trading mini contracts and losing money, the worst thing you can do is raise your quantities to catch up. It rarely, if ever, works. If you stay consistent and stick with your plan, the tide will turn, and you’ll be around to experience it. Too many traders try to double down and suffer double the losses.
Even when trading full-sized contracts, the quantities involved should remain stable. Do not suddenly increase the Forex size of the amounts to make up for losses. You can gradually increase charges using a pyramiding strategy, but that would be part of the strategy, not impulse or emotion. Stay the course, and you’ll gain the profits.
Forex Size