How to Grow a Small Forex Account
If you are a beginner who is just getting into the world of forex trading, then chances are that you don’t have very much capital to spare. Some of us start trading with only a few $100. This of course makes life a lot more difficult, because when you have such little money to trade with, you need to be extremely careful with what you do period now, with that being said, growing a small forex account is not impossible. Sure, starting with such little capital does make things difficult, but growing a small forex account is possible if you follow the right tips and steps.
What we are here to talk about today is how you can start trading with as little as $100 and still be successful. Of course, engaging in proper risk management is extremely important, but there is a lot more to it than that. When it comes to trading with such a small forex account, you do have to be extremely careful that you don’t risk very much on a single trade.
What we want to do today is to provide you with all of the most important tips and rules for growing a small forex trading account in a reliable way. One of the things that you will quickly find out here is that this type of trading, when you start out with such limited capital, is all about being reliable and consistent, not about how fast you can accumulate profits.
To be specific, today we are here to take a much closer look at one of the videos that Andrew has uploaded on his very popular Andrew’s Trading Channel. Within this video, and who provides you with the most important rules and tips that you need to follow in order to grow a small forex account reliably and consistently.
How to Grow a Small Forex Account in Three Stages
Now, and you will find out if you watch the video that Andrew has provided us with, there are three specific stages that you need to follow in order to grow a small Forex account in a reliable and consistent way, so let’s take a closer look at all of these three stages right now.
Here we have the most important tips that you need to follow in order to grow a small forex trading account in a reliable and consistent manner. These are the most important tests that you need to start out with before moving on to anything else.
- When it comes to growing a small trading account, one of the most important things that you need to do is to be able to identify trends and to identify how strong trends are. The main point here is that you only ever want to place trades on very strong trends, and not on trends that are going to reverse direction anytime soon. If trades turn around on you due to weak trends, your chances of making a profit are slim.
- One of the most important things when it comes to growing a small forex account is to engage in proper risk management techniques. It is recommended that you never risk more than 3% of your total trading capital in a single trade. This way even if the trade does go South, at least you won’t lose a lot of money. When it comes to lot sizes, you should start with a lot size of 0.30 or lower.
- When it comes to growing a small forex trading account, you also always want to take and lock your profits. This means that you don’t want to leave trades open forever in the hopes that they will just keep on profiting, because things will eventually turn around. It’s important for you to lock in those profits as they occur.
When it comes to growing a small Forex account, once you have mastered all of the previous tips that we just talked about, you can now move on to this next set of tips and rules. This is the second stage that you need to adhere to when it comes to growing a small forex trading account.
- Perhaps one of the biggest and most important things that you need to know about this type of training is that it is not a race or sprint, but rather it is a marathon. It’s not about how fast you can cumulate profits, but how well you could accumulate profits in a reliable manner without risking too much money. The fact of the matter is that people who think that they will get filthy rich within just a couple of weeks of trading are living inside of a pipe dream. Being able to make a 100% return on your investment in just a couple of days is very unrealistic. The bottom line here is that if you want to be a consistent trader, then you need to have realistic goals.
- Yet another important tip that you need to follow when it comes to growing a small forex account is to make sure that you always use ideal stop loss levels. The fact of the matter is that a lot of people don’t use ideal stop loss levels, and even if their trades do hit their stop loss, they’ve already lost way too much money. In other words, you want to keep your stop loss levels very close to your original investment, so that if a trade does go South, at least you won’t end up losing very much money.
- The other most important tip that you need to follow in this second stage is that you could only be trading with the most volatile assets. Of course, here we are talking about foreign currency pairs, but this also applies to any other type of trading. The bottom line here is that the more volatile a certain asset is, the more it will move, and the more of a profit potential it will provide you with. You always want to trade with the biggest market movers.
Once you have mastered all of the tips and rules that we had talked about in the previous two stages, you can now move on to this third and final stage. These are perhaps some of the absolute most important tips and rules that you need to follow when it comes to growing a small forex account in a consistent and reliable way.
- In terms of growing a small Forex account fast, something that we did mention in the previous step is that we need to take your profits when you can. However, if you have a winning trade, and it looks like it’s going to reverse before it hits your take profit level, well, then what you need to do is to walk in your trades as early as possible. In other words, if you think that your trade isn’t going to reach the take profit level, but it is still in the green, do you want to close that trade as soon as possible to lock in any profits that you might have accumulated, no matter how small they are. You don’t want that trait to reverse on before you hit the paid profit level.
- Yet another super important tip that you need to follow when it comes to growing a small Forex account fast is that you always need to pay attention to both technical analysis and fundamental news. Yes, we do realize that performing both fundamental and technical analysis can be quite difficult, but with that being said, it is absolutely necessary for both your short term and long term success. Therefore, you should check out some tutorials on exactly how to perform fundamental and technical analysis.
- Now, this tip was not actually included in Andrew’s video on how to grow a small forex account, but with that being said, we still feel that it is very important to note. The bottom line here is that if you are a beginner forex trader who has no idea what you are doing, then it is essential that you get yourself a good forex trading education. You want to find yourself a good forex trading school that can provide you with a good foundation of knowledge that you can then build upon. The fact of the matter is that starting forex trading without any kind of education is a recipe for disaster.
Consistently Growing a Small Forex Account – Final Thoughts
When all has been said and done, the bottom line is that if you follow all nine of the rules and tips that we laid out within those three stages, then you should be able to grow your small forex account in a fairly fast and reliable manner. Perhaps the most important tip that we provided you with here today is the one that was not included in Andrew’s video, which is that you absolutely need to go get yourself a good forex trading education before you really immerse yourself in the world of foreign currency trading.
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.