Always use the proper lot size when trading. Don’t use lot sizes too large for your account. This is because even a reasonably small draw down can wipe out your account.

ONLY trade with 5% of your margin e.g. if you have a mini account of $1000, 5% will be $50 which you can use to trade one mini lot. By doing so you are ensuring that as a trader, you are not over-leveraged which can cost you dearly or under-leveraged where the profit margin is always tiny. REMEMBER to always use 5% of your margin when trading and don’t be too greedy or else you will pay a heavy price. Start small and build up.

A wise trader also needs to know which accounts will suite him/her because this will depend on the type of trades you will enter.

If you have an account which is anything under $9999.99, it is always prudent to trade mini lots at $1 per pip. Anything under $1000 is still a mini account but it is advisable to trade micro lots at 10 cents per pip.

A standard account is anything over $10000 and such an account can trade standard lots at $10 a pip.

Summary
When trading always remember to:

• Use proper lot sizes. Don’t be too greedy
• ONLY trade with 5% of your margin, it is a safer bet
• Trade in micro lots for accounts under $1000, mini lots for accounts under $10000 and standard lots for accounts over $10000(standard account).

REMEMBER: Anything under $10000 is a mini account and anything over $10000 is a standard account.