How to Grow a Small Forex Account
If you are just getting into the world of forex trading, but you have no idea where to start, then you have definitely come to the right place. The fact of the matter is that forex trading is of course not easy in the least. It takes a whole lot of time, skill, and effort in order to become a successful and profitable trader. Now, this is only made harder by the fact that as a movie trader, you probably only have a limited amount of money to trade with. When you have such a small Forex account to trade with, things become a lot more difficult.
When you only have a couple hundred dollars to trade with, you need to be extremely careful so you don’t lose it all. Of course, when it comes to such a small forex account, you need to engage in proper risk management techniques in order to prevent yourself from bottoming out. Obviously, when you start with such little money, bottoming out your trading account is easily done, especially if you don’t use proper risk management techniques.
Moreover, when you only have such limited funds to trade with, making big profits, and actually growing that trading account into something substantial is going to take a lot of time and effort. This is what we are here to do today, to provide you with all of the most important tips and rules that you need to follow in order to grow a small forex account quickly and reliably.
With that being said, keep in mind that we are here to help you grow your account in a reliable and consistent way, with speed being a secondary factor. We’re going to teach you how to take a fairly slow and steady approach in terms of growing that small forex trading account, so you can grow into something substantial in a reliable way without risking too much.
The Three Stages of Growing a Small Forex Account
OK, so what we’re here to do today is to take a look at one specific video that Andrew A has uploaded to his trading channel on YouTube, aptly named Andrew’s Trading Channel. This is a trading channel where Andrew himself constantly provides you with new guides and tutorials on the best trading methods, techniques, and strategies.
This particular video features Andrew talking about exactly how to grow a small forex account in three separate stages, and he covers some really important rules and tips. Let’s take a closer look at this particular video to see exactly how you need to trade in order to grow your small forex account quickly and reliably.
in order to grow that small Forex account quickly and reliably, here are the first set of hits and rules that you need to follow, the first stage as Andrew calls it. These are all of the most important things that you need to do in order to grow that small forex trading account in a reliable manner.
- One of the most important tips that you need to follow in order to grow a small forex account in a reliable way is to stick with very small investments for each trade. Of course, risk management is very important to engage in, and this means that you shouldn’t be investing more than 3% of your total trading capital in a single trade. At the same time, you also want to start with very small lot sizes, at least 0.30 or even lower, you could even start with lot sizes as small as 0.01. So, if you trade like this, with good risk management techniques, even if you lose some trades, you won’t end up losing much money.
- The next step that you need to follow in order to grow a small forex trading account in a reliable way is to always take and lock in your profits. What this means is that you shouldn’t be keeping trades open forever in the hopes that they’re just going to keep profiting and going higher and higher. Profitable trades can and will eventually turn around and will eventually start losing money again, and therefore it is important for you to take your profits whenever you can.
- The other tip that you need to follow for this first stage is that you need to only trade with the strongest of trends. First of all, you need to be able to identify trends, and you also need to be able to identify how strong those trends are, which is of course where a number of indicators come into play. The fact of the matter is that you only want to place trades following strong trends and when you want to trade in the same direction. Never placed trades on week trends, and don’t place trades on trend that look like they’re about to reverse.
Once you have really mastered the first set of rules and picks for growing a small florets account reliably, you can then move onto this second stage.
- One of the things that you need to make sure to do in order to grow your small Forex account is the only trade with the most volatile of assets. Yes, today we are talking about volatile forex currency pairs, but this also applies to other markets, such as the stock market. The fact here is that when you trade with the most volatile assets, you will see the most market movement, and this means that you have the ability to make the most possible profits. The most volatile assets are the ones that move the most and also have the biggest profit potential. Moreover the most volatile assets are also the easiest to predict.
- The next thing that you need to realize when it comes to growing a small forex account is that this is a marathon. It’s not about how fast you can grow that small forex account, but how reliably you can do so with minimal risk. Therefore, what you need to keep in mind is that it’s not possible to make a 100% profit in a single week, especially when you start with such little money and because you need to engage in such high level risk management techniques. When it comes down to it your weekly profit goal should be no more than 5% of your total trading account.
- When it comes to growing a small forex trading account, the other thing that you need to make sure to do is to set proper stop loss levels. The fact here is that way too many people forget to set stop loss levels, and even those who do, tend to set them way too far away from their initial investment level. If your stop loss levels are too far away from your initial investment, even if your stop loss is hit, it’s already going to be too far away for it to make it huge difference. In other words, if your stop loss level is too far away from your initial investment, you’re still going to lose a whole lot of money. Therefore, you need to set your stop loss levels very closely under your initial investment, this way if you leave the trade, you won’t lose much money.
Here we have the final set of rules and tips that you need to follow in order to grow your small forex account in a reliable way.
- One important thing to keep in mind here is that if you want fast, you always need to read into the fundamentals, and you also want to perform technical analysis whenever possible, especially when it comes to those major market movers. Yes, we know that both fundamental and technical analysis are fairly difficult and advanced topics, but with that being said you do need to master variety of fundamental and technical analysis techniques, especially when it comes to indicators, in order to do this the right way. The bottom line is that in order to grow a small forex account quickly and reliable we, you absolutely need to be able to engage in proper fundamental and technical analysis.
- We did already talk about taking your profits and locking them in, but with that being said what happens if your trade doesn’t look like it’s going to hit your take profit level, but it’s still in the green? The fact of the matter here is that if your trade looks like it’s going to reverse before it hits your take profit level, then the only reasonable thing to do is to close the trade and lock in the profits that you have managed to accumulate far.
- The bottom line here, when it comes to growing a small forex account quickly and or I believe, is that you need to have a good education as a foundation. In other words you actually need to know what you are doing, and need to have a good foundation of knowledge about forex trading. starting out with a good foundation of knowledge will allow you to be a much better trader comma to make more profits comma in to minimize your risk level as much as possible.
Growing a Small Forex Account – Final Thoughts
The bottom line here is that if you follow all of the rules and tips that we have provided you with here today, then you should have no problems growing a small forex account quickly and reliably.
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.
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