Open forex account with minimum capital required is doomed to failure

jixiang

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almost all the forex brokers have a lot of publicity at their small capital requirement to open a account, but if you really use this capital to trading, basically you will soon be kicked out of games, which is why most traders will burst positions within 1 month.
Want to know why, well, let's look at those chart, which with the same parameters: Initial capital $300; winning rate: 50%; Stop Loss: 2%; Take Profit:2%; trading 2 times per day, $1 Fee per transaction.
chart1.jpg

chart2.jpg

chart3.jpg


Unfortunately, the actual situation is even worse than that, to have a 2% stop lost means $6 for $300 if 1pip = $ 1, that is 6 pips stop lost, how many people use this senseless stop? Most people stop with 15-20 points a 7% SL and TP, then the situation would like this:You will be kicked off faster!
chart4.jpg

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chart6.jpg
This is lucky one, but is kicked off finally.

Do not try again and again with minimum capital requirement, this is not the problem of your transaction technology.
 
Trade a micro account. A small account does not limit your ability to trade higher timeframes, that is often peoples perception, but in reality, account size is meaningless.
Your trading is measured in RISK/REWARD, so you must adjust POSITION SIZE ,thats all you need to do - !!
 
graphs make me want to buy whatever you;re selling oh master vendor

mathematically you're correct, but then mathematics is the only subject where you can say you are 100% correct

as theroguetrader said account size doesn't matter, just adjust position size so you only risk 1-2% of account with a MEANINGFUL stop not just an arbitrary 6 pips
 
sorry for my english, so the graph is clear to show me opions.
Yes, if we can trading with a small size, the situation is totally different.
the trading Fee is to be the focus: first chart without any fee, and win and lose 50 50.
the second including $0.5 per trade.
chart7.jpg

chart8.jpg

the fee is hiding in the pips.
 
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