There’s a rumor going around—a vicious, pernicious lie—that the currency markets have fixed big contracts—in other words, that to trade currencies, you must trade in large amounts.
That’s completely ridiculous. Currency traders have many options when it comes to position sizing. In fact. the fastest way to rapidly improve your trading and to become more profitable is to reduce your trade size.
In the currency market, you could start trading for a micro lot, which is equivalent to $0.10 a pip. (To put that into context, something like the euro might move 50, 60 or 70 pips a day.)
Then, if you want to, you could increase your trade size to two or three—all the way up to 10— of those micro lots. This would create a mini lot, which is $1 a pip (still completely reasonable).
If you want to go big time, you can trade a standard lot, worth $10 a pip.
And there’s hardly even any leverage that is required for this.
So a standard lot might require $2,000, a mini lot might require $200, and a micro lot might require $20.
Still with me?
We’re talking about really, really small trade sizes that give every single trader a chance to get started with a minimally sized investment.
Why is this so important?
Let’s say that somebody teaches you a brand-new trading strategy. You can test it out in the currency markets with a live account and real money, low risk and no fear.
And when you take the emotions out of trading by reducing your trade size, something absolutely magical occurs: your trading game improves… and your profits increase.
Think traders are all focused on the short term?
The U.S. economy is in the process of lining up for some change at the moment. In fact, I expect things to change in a significant way over the next 12-24 months. Click here to learn exactly what that means for my long-term charts.