Most of the time it is the novice traders that open their account without knowing the risk factors. If you use them, you will find that they do not have much money in their account. Their account is very small and it is only 10 dollars and it is also only of 20 dollars account in Forex. It is common to think that the traders who trade with the huge amount of money are in an advantageous position in trading. They do not have to use leverages as their account is big. They do not also have to worry about running out of cash as they can invest money anytime. They have money in their account and they are the profitable trader. This is a misconception in currency trading industry. All the traders are equal and not any traders can be advantaged because he has a big account. This article will tell you why the big traders can never be in an advantageous position in Forex even if they have the big sum of money in their account.
Currency trading is not so easy. You have to deal with losing trades on regular basis. However, if you follow the proper guideline, you can easily secure your financial freedom based on currency trading profession. There are many successful Aussie traders making tons of money with the small amount of trading capital. They know the perfect way to use the market leverage. None of them are born talented. They have worked hard to establish their presence in the retail trading industry.
Being a new trader, it’s very obvious you will not understand the complex structure of the Forex market. Some retail traders often blame the market for their losing trades. But no one in this world can manipulate the price feed. If you can do the market analysis in an organized way you can place high-quality trades in your Forex trading account Australia. But no matter what you do, never take too much risk in any trade.
The risks are all same
When you are trading in Forex, the risks are always same. This market is not biased and the risks do not get doubled for traders with the small account. You will find that all the successful professional traders started trading with small account because they knew it was hard to win in the market. They were patient and their patience paid off. They made the consistent profit. If you think the big tars with the huge amount of money are benefitted because of their account, you are wrong. They are also taking the same risks like you. In some cases, they take even more risks than any other trades in Forex. It is very simple because as their account is big, they have to trade for thousands of dollars profit. The money does not come out of risky trades and they can also lose this money if they do not win.
They do not have to use leverages
You may think these trades are in less risky position than most of the traders as they do not have to use leverage trading in Forex. They have money in their account and they can place the big trade. It does not matter if you are using leverage or not if you do not have the right risk to reward ratios. This ratio tells how much money you can risk for making the profit of some amount. Big traders may not have used leverages but the risks they are taking is not less. They may make thousands of dollars in their successful trades but if you look at their losses, it is also not less. They lost thousands of dollars also. Every trader is same in the retail trading industry. You cannot get benefit from the market because you have the huge amount of money in your account. It is only your trading skill and knowledge that can make you successful.