Mini Forex does not fit the concept of beginner traders, because they want "a lot at once", not "a long time and a little at a time", so the attitude to this type of currency trading at Forex is condescending and scornful for most.
Why does a trader need mini Forex?
Really, why bother with ten or twenty dollars if you can immediately invest one thousand - another one, quickly earn and radically change your life according to standard set of benefits from advertising of almost every brokerage company? The imagination helpfully throws up images of a new car, green palm trees against the azure sea ... However, life rather quickly dispels these illusions, but there is no turning back the money.
It is not a secret that in order to work successfully in Forex, a trader's arsenal of trading systems, even a super profitable one, is not enough. It is much more important for a trader to learn to control his or her emotions, or, rather, to exclude them completely during online trading. And, as it turns out, this "trifle" in the end is the most important thing in trading. On a demo account everything is fine and the results are great, but on a real account - tremors in fingers, hectic thoughts and one loss after another. Everything seemed to start so good. But maybe at this point in time not to try to catch the bogeyman in the sky, and still turn their eyes on the previously unjustly ignored mini forex? Let us give a thoughtful look at the advantages of this type of trading.
Mini Forex advantages
First and foremost, it is of course psychological stabilization at the moment when a beginner is switching from abstract experimental operations on a demo account to real trading that sometimes yields quite good profitability. Here a significant positive moment is just activities with real money, even with small ones, which in case of success can become a basis for work with big funds, and in case of failure the loss of such a deposit will not result in serious moral and financial consequences for a trader.
Secondly, mini Forex is an excellent platform for continuing education in the field of online trading, upgrading and testing your own trading system. Many experienced traders have such accounts to test their skills, as they do not trust the quotes provided by brokers' demo servers. And in case of failures on their accounts with many thousands of dollars they prefer to take time-out and make "debriefing" with possible changes in trading algorithm on mini forex accounts.
Mini Forex also makes a trader to take a new look at organizational aspects of his work. It is a wide range of questions usually left for "later". These are the issues of computer protection against virus attacks, and arrangement of a redundant Internet connection, and many other important, but not relevant to demo trading issues. In addition, the presence of even a small but real amount on the deposit is more effective in disciplining the player, than hundreds of thousands of virtual dollars on a dozen of demo accounts.
Switching from demo to real account using mini forex
To summarize, we can say that forex mini is not only an excellent starting point for beginners, but also a "safe harbor", where one can sit out in the periods of trading turmoil, rethinking and re-evaluating your trading vision, and maybe even improving your financial situation. Just 15 years ago it was impossible to become a currency market player without putting $ 10 ths on the deposit in the dealing centre. Now, when Forex beginners are offered to try their forces in real trading on Forex almost from scratch, it is, at least, unwise to neglect it and not take advantage of mini Forex accounts.