Many traders think that it’s a disadvantage to start with a small trading account and it’s very hard to make a profit with a small trading account. Well, it’s not true, it doesn’t matter how big or small is your trading account is all that matters is how well you use the processes and strategies in your trade to make profits.
You can’t even make more profits by having more money in your trading account, the only way you can make money is by applying accurate processes and skills of trading and most importantly whether you know how to trade properly or not.
The size of your account or investment shouldn’t be taken into account when it comes to creating the risk management policy. The traders should determine the risk factors in terms of percentage. Let’s say you are trading with a $100 account. So, make sure you are not risking more than $1 or $2 in any trade. Your risk needs to be contained by the 2% rule of money management.
How to handle small accounts
If you think you can’t become successful with a small trading account then you are completely wrong, there are many professional traders trades profitably even with a small account. The only aspect that matters is how well you understand the market and whether you can execute your strategies in the trade or not.
You should not take more risks with your small account as it may result in losing your money. If you want to make profits from a small account, you need to handle your trade-in a precise way.
Instead of developing a super complicated trading method, use a simple price action trading strategy. But the professional price action traders should rely on the best Forex broker so that they can use the premium tools. Using the low-end tools is a great risk and you won’t be able to make big profits from this market. So, take your time and find a decent broker like Rakuten who offers a premium trading platform.
How to trade in a small account
In your small account, you should trade like a sniper to make profits. In your small account, you should always keep your position sizes small as you don’t want to lose your money unnecessarily. Maintain proper risk management to avoid losing in the trades.
The best way you can trade profitably in a small account is by learning the proper processes and habits to trade without any loss. The more you will learn the better way you will be able to use strategies in your trade to make money.
Be patience with your trading strategy
As you can’t change your position size with a small account so to get the best entries possible you need to trade with patience. The more you can keep patience in a small account the better way you will be able to trade in the market. You need to grow your small account with patience and hard work.
Another key tool is the strategy, you can lower your losses, reduce risks and maximize entries by using proper strategies in the trade. To use strategies in the trade at first, you need to learn the processes to use every tool and technique in the market.
In a small account, you need to also pay attention to the price action and it requires many years of experience to understand the market properly. By observing the price action you can get an idea of whether you should trade or not. Indeed you can make a profit with a small trading account but for that, you need to follow the above points and never stop learning from the markets.
The key tips of all the successful traders are that they never stop learning and they maintain their learning routine regularly.