Starting with small trading account is actually a beneficial method, when it comes to Forex market. Do you know how to grow small trading account in Forex?
AtoZForex – Some may think that it is pretty unbeneficial to start your trading career with a small trading account. However, I believe that such idea stems from not concentrating on right things.
How to grow small trading account in Forex?
This belief comes from a common illusion that if you had more money you could become a more successful trader. In fact, if we talk about measuring your profitability in terms of one or two weeks, there is no doubt you might have got more lucky with a big trading account. Moreover, you could make a good amount of money really quick. However, does all this matter if you lose it straight after?
Thus, I believe, profitability should be measured over a long period of time. Let’s say, starting from 6 months to 12 months. The key point here is that if you are not capable of trading successfully on your small account, you will not be making profits on a big account either. Just because you will have more money does not imply that you will make more money. It also won’t speed up the process of you becoming a successful trader.
In fact, you can even lose much more money faster, if you don’t know how to handle big trading account.
What to do?
Some of you might have this idea in your head: ‘I could make a lot of money very quick on Forex and quit my job if only I had more money right now.’
However, this strategy fails most of the time. Let’s face the reality: if someone gave $100,000 to a trader with zero experience, would he/she do well with it? I highly doubt that. They would most probably lose more than half of money in a few months.
So, do you believe that more money can drastically improve your trading results?
The moral is that it is not about the money, it is about you and your trading mindset and experience. If you have a small trading account right now and you are at the beginning of you long Forex market journey, you can actually consider yourself lucky. This is due to the fact that it is normally better to learn and make mistakes with a small account. The losses will not cause great emotional stress, in oppose to the big account.
Use your imagination
The first thing to do after you realized that a small account is actually an advantage is to change your mindset. Instead of just thinking that you want to make a lot of money trading, start thinking of HOW you can do it.
Another way to think about it is to imagine that you have a big trading account. Such technique will help you program your mind for future victories. Trade with a small account for now and train your mind ‘as if’ you are trading big money. This method will also help you to learn how not to over trade and risk too much.
You trading mindset must be focused not on the ultimate goal, that is MONEY, but on the process of getting money, that is TRADING.
How to grow small trading account a smart way?
- Do not take a lot of trades, trade strategically
- Manage the risk wisely, as if you trade big money
- Money is not the goal here, learning is: follow your strategy, stay disciplined
- Do not think about recovering your losses
Think we missed something? Let us know in the comments section below.