You are doing it right. Starting off with 100 lots is a better way in order to take low risks. In micro accounts, trading volume is low and some brokers give you no or minimum deposits and don’t even charge for deposits. I know the profits might be low but it’s good to keep it slow, rather than running fast and losing.
The thing that matters is making yourself familiar with different order types when trading any significant position size. In some cases, you may also get to attach a slippage control to the market order.
When you are using a tool like a risk management calculator or something similar with the desired output, it gets easier for you to determine the best lot size based on your current trading account assets. Whether you are on your demo account or trading live, you will get to understand the amount you would like to risk.
I am not sure how much you are risking per trade. In order to determine the right lot size, you will be required to determine your risk in percentage. Talking about my previous trades with turnkeyforex and fxtm, I follow the 1% rule. In case a trade closes out for a loss, no more than 1% of my account balance is at risk.
I think a micro account can really save you from losses. I usually test my strategies through them. The capital requirement is low with them and right now I’m dealing with two $250 and $300 mini accounts.
mitchelstrack posted: I think a micro account can really save you from losses. I usually test my strategies through them. The capital requirement is low with them and right now I’m dealing with two $250 and $300 mini accounts.
Yeah with micro lots it is also easier to go with risk management. Can’t say it is that simple with a standard lot. As for me, I too prefer micro accounts and trust me they can get a bit tricky at times. But the risk is definitely lower so it works out. I have micro accounts with Fxtm and Fp markets at the moment.
I find micro accounts pretty interesting too. They sure set up a real trading environment but with a lot less money. It’s kind of fun to trade micro. I don’t go very high with the leverage so that doesn’t increase my risk so much. As for brokers, I have just opened some micro accounts with Instaforex and Turnkeyforex. Just trying my luck with them and see if these micro accounts can help me with profitable trading as well. Much better than demos I think.