Pinjamanonline.redaksikerja.com 5 Advantages Of Trading On The Nano Account Forex – Have You heard about the horror stories of forex traders who already lost thousands of Dollars when a new plunge in the world of forex trading? Believe it or not, the experience as it is not only a grain to two grains.
There are a lot of beginner traders who suffered a loss, mostly because it is too bold start real trading with big capital. In fact, such a disadvantage can be avoided with one simple trick: trading nano forex.
What It Nano Account Forex?
Basically, nano account forex is the type of account that limits the minimum lot can be smaller than a lot of micro. So if lot micro can reach a volume of 0.01, then the nano, minimum lot traded can be as small as 0.001, 0.0001, etc.
A Broker who provides an account of the nano is actually quite a lot, it’s just the label that is used is not always the “nano”, but rather “cent” or “micro”. The mention of the name are different in fact starting from the limitations of the MetaTrader platform, because the platform can not provide the stuffing lot of trading with an amount smaller than 0.01.
Therefore, broker-a broker that uses MT4 work with changing the type of currency the account becomes cent. Because the value of the cent is a hundredth of a smaller than standard, so if You choose a lot 0.01, Volume was only by 10 units, or the equivalent value of $0.01 per pips if You are trading EUR/USD.
With a choice of minimum lot is so small, nano account forex allows trading with low risk. Nevertheless, the potential advantages to be gained from this account was also very minimal.
The movement of the price of 50 pips maybe can bring in a profit of $500 standard, but on a nano account forex, profit may be only about $0.5. Limitations of profit on top of being one of the reasons why many traders are reluctant to use nano account forex.
Such a mindset is actually wrong, especially to the novice trader. Thinking sparing potential of a small profit in the nano account only profit-oriented course.
Whereas in a trading, profit and loss are two things that are inseparable. If You study the benefits of nano account forex not only in terms of profit, but also the risk of loss, there are 5 trading profits that You can get. What is it?
It Is Ideal For Beginner Traders
Novice traders often be guided to put forward the anticipation of risks rather than how to gain maximum profit. Why is that? Of course because of the understanding and the experience of those who are still lacking, as well as the level of profitability that is still unstable. Novice traders are also easier inedible emotions and vulnerable do overtrading .
If it’s like that, is it safe to base the selection of the account according to the opportunities solely profit? Remember, the potential profit is always in the direction with the risk of losses. So if you want big profits, then You should also be prepared to bear the Loss large.
For ease of understanding, let’s turn back the example of the comparison between the standard account and nano account forex in the top. Let’s say the price movement of 50 pips it does not fruitful profit, but it is precisely the loss.
You certainly will lose $500 if you use a standard account, while with nano account forex, Your loss only to the extent of $0.5 course. In conclusion, if varying with the habit of a novice trader who is still often make mistakes, accounts with a lot small as the nano is certainly much more safe to use.
Reduce The Stress Of Trading
Success in forex trading is not only determined from the strategy and management of capital, but also the psychology of trading. There’s no point You set up a system of trading with a high profitability, if it is still often affected emotion at the sight of price fluctuations.
Actions outside of such a plan to close the position before his time, origin add to the position because of the “bun” with the loss of the previous, could present risks-the risk of unexpected which is not in accordance with the profitability of Your system.
Price volatility can not be addressed because it is out of Your control. The only way that can be done is to control the emotions of trading, which appropriately begins with the pressure reducing stress.
Believe it or not, the source of the stress of trading, often derived from a risk which is not in accordance with the tolerance limits. That is, You open a position with a greater risk than what You could receive.
If it’s like that, then You will be overcome with anxiety for the position of walking, so it tends to easily perform actions outside of the trading plan.
The lot is super small which is available on a nano account forex, You can know how it feels to trade without stress. How not, the risk of loss on this account so small even if You open multiple positions with the target hundreds of pips though. If Your strategy is really adopting the technique of diversification, then the nano account can help You megimplementasikan such a strategy without excessive stress.
The Arena Trial Strategy
Nano account not only beneficial for the novice traders often make mistakes, but also experienced trader who likes to test new strategies. The purpose of the trial (Forward Test) such as this is to determine how the performance and profitability of a strategy, so that the trader will usually avoid your account-the account with a high risk to do so. However, they do not want to bear the loss of large current strategy being tested turned out not as expected.
If it is based on the needs of that course, isn’t a demo account that is not burdened with the risk of loss of any kind should be enough to test your trading strategy? Unfortunately, the performance of the strategies can also be determined by the quality of Order execution. Demo accounts can not provide a real execution because of the Balance and Order everything is virtual.
That’s why, nano account forex can deliver the perfect solution for the purposes of the Forward Test. In addition to presenting a real execution, minimum lot nano account carries the risk is very small, not much is different with a demo account. Other benefits, You can realize the profit obtained from the test results of such a strategy.
Do Not Limit The Use Of Large Lot
Did You Know? Using nano account does not mean You can only utilize a small lot for trading. In fact, features a lot of trading that can be smaller than 0.01 (micro) is just the limit of the minimum. Meanwhile, to the maximum extent, nano account forex still allows the use of standard lot. So if You want to improve your potential profit after happy learning with a small lot, then the account of the nano can still provide the means.
Thus, You don’t need to bother to change the type of account so feel ready to trade with a lot more large. Unless You direct plans to open many positions with the accumulated trading Volume reaches hundreds of the lot (which is not recommended), then the nano account forex still accommodate Your needs to develop a portfolio of accounts gradually.
More Flexible To Set Up Risk Management
One of the principles in managing the risk management is to determine the limit of the maximum loss according to the tolerance of each trader. But what if You have a risk tolerance that is small, while Your trading system requires a range of Stop Loss that big?
Let’s say You have a balance of $300 and establish the rule of 1% for each trading position. That means, You can only risk $3 to each Order. If using a lot of micro to trading the EUR/USD value per pips him amounted to $0.1, then You can just adjust the Stop Loss to a maximum of 30 pips from the entry.
If market volatility is very high, then the Stop Loss distance is certainly less than ideal; instead of securing it, Stop Loss instead speed up Your position closed with a loss.
However, if you use a lot of nano which can reach a value of $0.01 per pips or even smaller, then You can widen your Stop Loss even up to 300 pips from the entry price. With flexibility like that, You don’t have to anxious about the rules of risk management which is not in accordance with market conditions.
