One of the trades that is quite in demand is forex trading. Because the benefits of trading are quite large and can be felt in a short time. However, it is not uncommon for traders to experience losses when trading. Therefore, consider some of the ways to play forex with small capital so that you can get a lot of profit below so that more money flows:
1. Practice Using a Demo Account
When as a beginner in the field of trading traders must develop a strategy carefully. This is what beginners often miss and rush to trade even though they don’t understand the forex trading market they will face. Therefore, as a beginner, first determine the goals to be achieved, pay attention to the risks, and also the capital you have.
After that, do some practice using a demo account to determine the right strategy before starting in real trading. Traders can use various demo trading applications for practice. After feeling sure, just create an account in a real trading application.
2. Set the Leverage and Trading Volume
Furthermore, how to play forex with small capital so that you can still make a lot of profit is to determine leverage and trading volume. When having a small capital, traders must limit themselves so as not to over-leverage and over-trade.
Leverage can indeed help traders with small capital to reap large profits. However, over-leveraging is a very high risk of experiencing losses when trading. When having a small capital like 1 million or even under it should be sure to limit the leverage at the level of 1:100 and trading volume of 0.01 per trading position.
3. Discipline in Trading
Next, the thing to do is discipline. Forex is an investment that has quite volatile movements. Therefore, traders must be diligent in monitoring the investments made. This will be very influential in determining the strategy when trading.
For those who don’t have much time to monitor trading movements for 24 hours, there are strategies that can be done. To trade will be easier if you use a trading robot. After that the trader when trading can determine the right stop loss and also take profit.
The goal is to minimize losses for traders. Traders need to enter a certain amount of value as a maximum loss limit. Thus, the trading robot used will automatically close the position when a loss actually occurs.
4. Avoid Trading During the American Session
Next, how to play forex with small capital is to avoid the American session when trading. Price movements in the American session are very fast, because they will greatly affect the currency paired with the dollar. If you are a beginner, you should avoid trading in this session because reading the market in this session is quite difficult.
5. Use Indicators as Necessary
Indicators on trading platforms are useful for helping traders to read market movements. But sometimes traders are not familiar with certain indicators. Therefore, as a beginner, you can choose the most convenient indicator to use.
This is where the importance of doing the exercises first. By practicing using a demo account, traders can learn to read the market using the indicators. Users also practice to choose the most appropriate indicator to use.
6. Choose a Broker That Has Low Fees
Next, what is no less important is choosing a broker that has low fees. When choosing a broker, you should pay attention to the facilities provided.
Among them are having the option of micro, cent or nano account types, commission free, swap free and also set a minimum spread under 3 pips. In addition, make sure the selected broker is registered with BAPPEBTI to make it more secure.
That was how to play forex with small capital so you can still make a lot of profit. Success in trading can actually be done in a simple way but this is difficult to practice. Therefore, as a trader, you have to practice more and learn to analyze the market more carefully so you don’t experience losses.
