Ni hao, Shanying ...
This biggest mistake that most of traders fall into is using the wrong account type.
Please let me show this example to give you an idea of the power of using the right account type ...
Let us talk on accounts that all have same leverage and same lot size ...
For Standard Account (Lot size = $100,000)
Lot= 1 >>> 1 Pip Move = $10
Lot= 0.1 >>> 1 Pip Move = $1
Lot= 0.01 >>> 1 Pip Move = $0.1
For Mini Account (Lot size = $10,000)
Lot= 1 >>> 1 Pip Move = $1
Lot= 0.1 >>> 1 Pip Move = $0.1
Lot= 0.01 >>> 1 Pip Move = $0.01
For Micro/Cent Account (Lot size = $1,000)
Lot= 1 >>> 1 Pip Move = $0.1 = 10 cents
Lot= 0.1 >>> 1 Pip Move = $0.01 = 1 cent
Lot= 0.01 >>> 1 Pip Move = $0.001 = 0.1 cent
So, For traders with low capital to trade, to have same trading conditions to those they have big
capital, they have to go to either Mini or Micro account ...
In an other way with numbers, Let us say, if we both use same EA with same settings, but you have
a capital of $50,000 and I have only $500.
So, if you trade using Standard account and I use Micro one, then at the end of the month we both
will do same profit percentage ... But of course different in $$$.
If you made 50%, then your net profit will be $25,000, but mine will be only $250
But, suppose I use same account as yours (Standard) ... For sure Margin Call will wait me in very
short of time because a little market movement in the opposite direction that I need to make a profit
will kill my account, but in other way, market move in my preferred direction will let me earn too big.
So, as a summary, using the wrong account type is a kind of High Risk Gambling !!!.
Be careful, Always use the right account that matches your capital to satisfy the first rule of the list
to be a successful trader.
Good luck to all ...