When you open a Forex account with $25 only, you shouldn’t expect to go far if you don’t have any trading experience.
On the other hand, it doesn’t necessarily have to be $25. The small amount can be $50, $100 and even $1000. A $1000 Forex account is still considered a small account.
So the question is, can you succeed with a small Forex account? Can you open a Forex account with $25 and build it over time?
It might feel like you are disadvantaged when you don’t have much capital to start off your trading career with.
But that does not necessarily mean that those feelings are validating your circumstances in relation to whether or not you can be successful trading a small Forex account.
The fact remains that your trading balance does not affect your trading capabilities in any way. But of cause your trading capital affects the amount you can make out of your trading activities in a certain duration.
Most of you who embark on this journey might feel like a bigger account balance makes them better traders. Sure, two or three lucky trades will bring huge returns in a short period of time.
However, before you realize it, you will have given the chunk of profit back to the market just as fast as you accumulated it.
Probably your profitability as a trader should me measured over the long term instead of weeks. A 6 month period is good enough to measure your performance when you open a Forex account with $25.
When I was learning how to trade Forex properly many years ago, I could start with a $50 account balance and quickly make it $100 or even $150 in less than 2 weeks. Just before I could withdraw some of that profit, greed would take the better part of me.
So I would say to myself ”what if I trade 0.2 lots and make $200 in this one trade?”
Suddenly I would enter a quick trade and things would go south. I would opt out of that trade when my balance has already been slashed halfway.
In other words, if you don’t know what it takes to become a successful Forex trader, it does not matter whether you start with $25, $1000 or $100,000. You will still give back your profits and even your entire trading capital to the market.
Open Forex Account with $25
Granted the opportunity by a Forex broker, am sure many newbies will go ahead and open a trading account with $25.
But the point is this, even if you were given a $100,000 Forex account yet you have no prior trading experience, do you think you would do well in 6 months time?
Many people would never bet on you because in just a couple of months, you will have lost 60% of that account’s worth.
Therefore, why do you believe that if you only had ”enough money”, you would be an excellent Forex trader?
You might be having some trading experience or background. The reason you are reading this post is because you are wondering whether a $25 can take you anywhere or you’re probably looking to know whether a big account can make you successful quickly.
If this sounds like you, then the problem is not money. The problem is that you have not yet mastered your edge. You should fix this as quickly as possible. Or else, you will be disappointed with the Forex market regardless of whether you go in with $25 or more.
Open Forex Account with $25: your mentality
You must stop focusing on wanting more money and instead consider learning how to make more money.
If you had a $100,000 Forex account, money would never be a concern because you already have a big bank account. Instead, how to build that balance to $200,000 perhaps, would be your concern.
In my story above, if I only traded as if money wasn’t the problem, my inner self would never have forced me to over-trade and risk more than I could swallow in pursuit for more money.
Basically, it boils down to your mindset. Focus on the process of making it happen rather than wanting money now.
What if you have a $25 Forex account or even smaller?
Just trade it like a millionaire Forex trader. If you want to properly manage your risk and not make costly mistakes, trade smaller sizes.
Money should never be the motivator. Instead, you should be pushed by wanting to learn the process and of course staying disciplined with your trading edge.
Finally, if you lose $5 or more in that account, you should never think of recovering that loss. If you do, you will be focusing on the money instead of the process.
I hope this article has addressed this issue quite well. You can contact me here if you have any questions, or simply drop your comments below.
Author: Warren Ouma
Warren Ouma is a highly regarded Trader, Author, Critique, Blockchain analyst, Investor & Coach with over 7+ years experience trading the financial markets. He currently mentors students from various parts of the word. In 2016, Warren won the Million Dollar Trader Competition, achieving an impressive 350% return. Warren regularly contributes to well known financial websites and publications including Valforex.com, Investing.com, FX Street, MoneyShow, and more.