moonchild
VIP Contributor
As a beginner in Forex trading, its is natural to be tempted to use Big Lots sizes, especially if you have been watching the gurus on social media flaunting their profits, most of the times these people are trading with them all accounts, you should not take them serious at all.
When you have a small account, use a small lot size, for example any account from $50 to $300 should use 0.01 lot size, the reason why small lot sizes are advisable for small accounts is, it allows you to have a very large stop loss so that even when the price retrace you would not be taken out of the market, but when you are using a big lot size you cannot use a large stop loss else you would blow your account.
Using a small lot size on your small account will also gives you more confidence because you know whatever happens you would only lose a small amount of your account instead of risking it all and losing everything.
It takes time and patience to build an account to a substantial amount so take your time and learn as you trade, tune out the noise, apply good risk management and you are good to go.
When you have a small account, use a small lot size, for example any account from $50 to $300 should use 0.01 lot size, the reason why small lot sizes are advisable for small accounts is, it allows you to have a very large stop loss so that even when the price retrace you would not be taken out of the market, but when you are using a big lot size you cannot use a large stop loss else you would blow your account.
Using a small lot size on your small account will also gives you more confidence because you know whatever happens you would only lose a small amount of your account instead of risking it all and losing everything.
It takes time and patience to build an account to a substantial amount so take your time and learn as you trade, tune out the noise, apply good risk management and you are good to go.