Mini Accounts – A Wolf in Sheep’s Clothing

So if you believe, as I do, that  demo accounts do more harm than good, the next logical step is to suggest the mini account right?   I mean, the mini account has skin in the game so it has to be the answer.  

I don’t think so and have written a few common conversations to uncover those hidden traits that can really harm you.

Guest post by Matthew Carstens.  Founder of Rogue Red, Creator of    TradingWheels

Conversation #1:   A common conversation between couples

“Honey, can you pick up a gallon of milk on your way home?”

“Sure, I’ll pick it up next door when I leave.”

“No, don’t do that.   They are too expensive.   Just grab it at the gas station instead.”

< Later that night >

“Hi Honey, I’m home.”

“Hi, did you pick up the milk I asked for?”

“Yup”

“Well what is all of this other stuff then?”

“Oh, well it was so cheap I figured I’d get more.”

Conversation #2:   Mike and Larry walk into a casino

“Larry, lets go to those tables over there.”

“Mike, you go ahead.   I am going to play on these cheaper tables.”

“Oh, ok.   What, did you not bring enough cash?”

“I just figure I’ll practice on these cheaper tables first until I prove to myself I can play on the more expensive ones.”

“Oh, OK, good luck.”

<Later that night>

“Hey Larry, what are you doing at the bar already?”

“Ahh, well I lost everything I brought in.   I’m done for tonight.”

“What do you mean you lost it?   I thought you were on the cheaper tables?

“Yea, well I started small and was doing alright but then”¦ I don’t know”¦ I lost control and just started betting bigger on those tables than what I initially intended.”

“Why did you do that, I thought the whole point of starting on the cheaper tables was to practice?”

“Yea, I know.   I messed up.   I started to get bored because the amount didn’t mean anything to me, so I pressed a bit and then started losing.   I knew I had more money in my pocket and just lost control of myself until it was too late.”

In both of these cases,  we can see people trying to be prudent thinking smaller pieces can save them money (like a few mini lots), but later on realize they spent the funds they were trying to protect in the first place.

There is a better way.