Develop a Disciplined Trading Strategy
Ask any successful trader and they will tell you that the key to trading success is discipline. Everyone has heard the expression "cut your losses and let your profits run" yet how many traders actually practice this?
Many traders will hold on to losses hoping they will reverse eventually, only to see the loss get progressively larger. These "irrational" trading decisions are based on emotional reactions to fluctuating profits and losses, a common pitfall for new traders.
Losses can AND WILL occur, A trader's ability to limit his losses is just as important (or even more important) than determining entry points.
Because the pip value on the SuperMini Account is just 10 Cent ($0.10) per pip, traders can focus on developing a disciplined trading strategy, basing their decisions on pip movement and market conditions and NOT on P/L.
Consider the Following Example:
When trading a FOREXYARD SuperMini account, a 30 - pip floating loss over a 1000 position is approximately $3. That same 30 - pip move against you on the 100K position, becomes a $300 floating loss. By starting with a SuperMini account- a trader loses only a small amount on every losing transaction making it easier to stick to a disciplined trading strategy. Generating larger losses on the Standard account can be detrimental to new traders as the temptation to hold on to the loss is much greater based on the size of the loss.
Start Small. Build Up Confidence
There is NO MAXIMUM trade volume on the FOREXYARD SuperMini account. Although the standard trade size is 1000 units - you are not limited to trading one lot! For instance, you can trade 10,000 units, 50,000 units or 150,000 units. This means as you become more seasoned and build up confidence you can slowly increase the size of your positions to maximize profits. In fact the trade size of 10,000 units allows for more flexibility in terms of customizing the size of your trade enabling better risk management.
The SuperMini account is ideal for Accounts under $1,000
FOREXYARD recommends that all traders with account balances less than $1,000 trade a SuperMini account. This gives you more staying power in the market, and the ability to take advantage of multiple opportunities without over-leveraging your account. If you over-leverage your account you will not give yourself room for error. Even if you are correct on the direction of the market, minor fluctuations can generate a margin call and liquidate a good position.
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