Tips on Growing a Small Trading Account
Forex trading is not easy, especially if you start trading with a very limited amount of money. What we are here to do today is to provide you with all of the most important tips on growing a small trading account reliably. The nine tips that we are about to provide you with below are absolutely essential when it comes to growing that small forex trading account in a reliable and consistent way.
Rules for Growing a Small Trading Account
Let’s get right to it and take a closer look at each of the three stages that you need to follow very closely in order to be successful when it comes to growing a small trading account. Remember folks, here you are starting with next to no money, so following these rules in great detail is extremely important. If you fail to follow any one of the rules or tips that we provide you with below, then your chances of being accessible trader, especially when starting with such a small account, decrease drastically.
let’s get started and talk about the first three and perhaps the three most important tips that you absolutely need to follow when it comes to growing a small trading account. The tips that we are about to provide you with below are needed in order for you to start trading successfully.
- Right off the bat, when it comes to trading with a small trading account, one of the absolute most important things that you need to do is to learn how to identify trends. Not only do you need to know how to identify trends, but you also need to know how to identify the momentum of trends, or in other words how strong those trends are. On that same note, not only do you need to know how to identify trends, but you also need to be aware that when you trade, you need to do so on the strongest possible trends. Trading with the strongest trends will help to ensure that you make profits. If you trade on weak trends, then the chances of your position reversing before you can make a profit are fairly high. You don’t want to place trades on weak trends because they could turn around at a moment’s notice have caused you to lose money.
- Another tip that you absolutely need to follow when it comes to growing a small forex trading account, is that you always need to take and lock in your profits whenever possible. Now, this means that whenever possible you don’t want to leave trades open for any longer than necessary. If you have a trade that is in the green, or in other words, is in profits, then you don’t want to keep it open for much longer. The fact of the matter is that trades can and do turn around. This means that you might end up losing money if you wait for too long before you take your profits. You don’t want your trade turn around before you get a chance to take your profits.
- The other most important thing that you need to remember when it comes to growing a small trading account is that you absolutely need to engage in proper risk management techniques. One of the things that most trading newbies absolutely fail to do. The fact of the matter is that even if you just have a few $100 to trade with, you should never risk more than two or three percent of your total trading capital on a single trade at once. Moreover, on that same note, when it comes to lot sizes, you also don’t want to start trading with a lot size larger than 0.30. If you engage in these risk management techniques, even if you do lose a trade, you at least shouldn’t lose all that much money.
What do you have practice following the first few tips that we provided you with in the first stage, you can then move on to the second stage. Here we also have a list of tips for you that will help you grow that small trading account fast, and with minimal risk involved.
- One of the biggest mistakes that newbies traders make is to not use proper stop loss levels. Of course, a stop loss level is a level that you set, which will force a trade to close on its own in the event that it loses too much money. The problem with these stop loss levels is that most newbies set them away too far away from their original investment. This means that even if they do set a stop loss level, it will be too far away for it to make a large difference, and too much money will end up being lost. Therefore, in order to minimize losses, your stop loss levels need to be set very closely below with your original investment.
- When it comes to growing a small trading account, another one of the extremely important tips that you need to follow, or a piece of advice at the very least, is that trading forex is a marathon. The point here is that trading is not about how fast you can accumulate profits, but rather about how reliably and consistently you can do so. This is especially important when you start trading with a very small trading account, because you don’t have any money to spare. The simple reality is that you just aren’t going to get filthy rich from a few days, or even from a few weeks of trading. Therefore, the main point here is that you need to set yourself realistic goals that you can actually achieve.
- The other tip that you need to follow in terms of growing a small trading account is that you need to trade with the most volatile assets possible. Sure, here we are talking about currency pairs, but with that being said, this theory really does apply to all types of trading. The bottom line is that the most volatile assets are the ones that move the most, and this therefore means that when you place a trade on a volatile asset, it provides you with the biggest possible profit potential. Don’t trade with assets that aren’t volatile because they just aren’t worth your time.
The Final Stage
Now that we have gone over the first two stages of how to grow a small trading account, there is only one stage left. Let’s get to it and provide you with the final three tips that you need to know in order to be successful in growing a small forex trading account.
- So, we did already talk about taking your profits and locking them into place. However, what you also need to realize here is that trades aren’t always going to reach their take profit levels. If you have a trade that is in the green, or in other words one that is profiting, but it appears as though it might not reach its take profit levels because the trend is going to reverse, then you need to close that trade early. The bottom line here is that you can’t be scared to close a trade early.
- If you want to grow your small trading account quickly and reliably, another thing that you need to be able to do is to perform both technical and fundamental analysis. Both technical and fundamental analysis are extremely important in the world of Forex trading, and in trading in general. It is absolutely necessary for you to know how to perform a variety of fundamental analysis and technical analysis techniques if you plan on being even a remotely successful forex trader.
- OK, so this final tip that we are about to provide you with for growing a small trading account was not actually included in Andrew’s video, but with that being said, it is equally as important as the rest of the tips. The bottom line here is that if you are a newbie trader who just does not know what you are doing, then it is absolutely essential that you go get yourself a good forex trading education period being a successful trader, even if you start with a very limited amount of money, all starts with a good foundation of knowledge that you can then build upon.
Best Rules on How to Grow a Small Trading Account – The Bottom Line
We hope that all of the tips and rules that we have provided you with here today will help you grow that small trading account in a quick and reliable manner. With that being said, do keep in mind that this is all about being consistent and reliable, not about speed. Sure, how much profit you make does matter, but with that being said what matters more is not losing money. The bottom line here is that if you want to become a successful forex trader and you want to grow that small trading account quickly, then the best thing to do is to start with a good forex trading education.
If you need help day trading, and what you need is a comprehensive education, particularly on Forex trading, then the best place to be is the Income Mentor Box Day Trading Academy. At this time, the IMB Academy is the most comprehensive, user friendly, effective, and affordable Forex trading school out there.