What are your recommendations for growing a trading capital from a small deposit?
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  • #1 Collapse

    What are your recommendations for growing a trading capital from a small deposit?
    What are your recommendations for growing a trading capital from a small deposit to a substantial amount?
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  • <a href="https://www.instaforex.org/ru/?x=ruforum">InstaForex</a>
  • #2 Collapse

    What are your recommendation for growing a trading capital from a small deposit?

    First of all write down how much I wish to be making on weekly or monthly basis, you must have a goal amount that you have in mind to shoot for, it's much more is easier to work to achieve something in particular than it is to work without a clear goal because a clear goal gives you purpose and it's also motivate you to go further and try one more because whatever goal you set before you, there exist a way of attaining this goal, you just have to find it.
    Now how to grow small capital.

    Set a daily target for example you want to 5% of your capital and your account balance is 100$. If you set your profit daily 5$ then at the end of the month you will get 200$. Next month you again set 5% goal with 200$ account balance then you will get at the end of the month 400$ and so on. That's how if we trade with discipline and without greedy we can double our account every month.

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    • #3 Collapse

      HOW TO GROW A SMALL TRADING ACCOUNT?

      Let’s face it, not everyone who wants to trade forex has enough money to start comfortably and even if they have the money they might not want to use big money when they are just starting. In that case, we should start small and build the account into something that can generate a stable income. Depending on where they live, traders will start with anything from $5,000 or $1,000 or $500 or even $100 but the fact is the amount does not really matter. Just start with what you can afford. That is the first step! There are other things that you must do if you want to build a trading career and let’s check the rest of them…


      Step number 2. Be prepared mentally. Before you even attempt to do this, you should be prepared mentally because this is hard work and not everyone will succeed in doing it. You should know that the majority of people who try this eventually fail. All the losing trades, all the emotion and all the failed expectations will take a heavy toll on you mentally and many people break because of the heavy pressure. If you are prepared mentally then your journey will be a lot less tough and you will be able to enjoy the whole process while sticking to your goal. This is a very important aspect because it’s gonna be a long journey.

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      Step number 3. Have a reasonable expectation. Many people are crushed because they think they can’t meet their own expectations. If you are looking to build a $10 into $100,000,000 then you are daydreaming and it will be painful to finally realize later on that it’s an impossible journey. Knowing your own limitations while keep upgrading your skills will lessen the burden and help you set a reasonable expectation. Nothing is more deadly than a crushed hope. So, set things right even from the beginning and you will be fine.

      Step number 4. You should make a solid trading plan and then strictly follow that trading plan. This may sound simple to do but the majority of those who fail in this business found out later that they are not following their trading plan carefully. They get side-tracked. There are various reasons why people get distracted and can’t really follow their trading plan no matter how simple the plan is. The keyword here is discipline! If you are not disciplined in doing it then you will fail. The forex trading business is not a place where you can make mistakes and face no consequence. In trading, if you make a mistake you will bear the consequence and this is a sure thing!

      Step number 5. Do not use big leverage! It is true that big leverage is one of the biggest attractions for people to trade in this market but you should not over exploit this feature. Using a very big leverage might tempt you to use a lot size that is too big for you to use. In fact, big leverage is the number one reason why many people lose money and this in turn resulted into a law that was passed by the government in the U.S. to limit the amount of leverage a trader can use to only 1:50. This is the famous Dodd-Frank Wall Street Reform and Consumer Protection Act. The law was meant to protect new traders from losing money too much because many of them are abusing the leverage and gamble their trading account. A lot of forex brokerages shut down in the subsequent years after this law was enacted and today you only hear about a bunch of forex brokerages in the U.S. and now you know why.

      Step number 6. Make sure to use a reasonable risk to reward ratio. Granted, you can not eliminate losing trades at all but you can limit how much you can lose per trade and even so, you will still make money in the long term. Using a reasonable RR will help you to reduce your loss and keep your profit bigger than your loss. There are people out there who suggest using a RR like 1:0.5 or even 1:0.3 and this type of RR is not healthy for you unless you are already an expert trader which means you can do anything you want. If you use a small RR like that then it means you are trading very quickly (scalping) and this type of trading will drain you emotionally plus it requires a lot of maintenance because you need to stay in front of the monitor from start to finish to execute the trades. New traders really should avoid doing this.

      Step number 7. Use a reasonable risk per trade. Don’t ever think that because you are using a small account you can just use big risk and have no problem if you lose the money. You are building a trading career and your track record is going to be your resume and this resume can be used later on to manage other people’s money or maybe you can work for a prop company or hedge fund or private fund or even a simple project like social trading and PAMM. You must build a strong legacy in your track record even if you only want to trade your own money. Using a big risk is not recommended because you also have to think about the losing streak which will happen whether you like it or not and many people really get devastated when they face losing streak because they use big risk.

      Step number 8. Compound your profit. Even a small account will eventually snowball into something big in the future because of compounding. You will feel the effect of compounding after 50 to 100 trades so the effect is quite immediate. It’s easy to see the effect of compounding if you put the numbers on a spreadsheet and you can do this yourself. Try to not touch the profit and compound 100% of your profit and you will quickly feel the growth of your trading account. The effect of compounding is real and you can see traders out there who made it big because they compound their gains.

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      Step number 9. Treat forex trading as a serious business. Maybe because you can do forex trading simply by using your smartphone you don’t think that trading is a business at all. Don’t fool yourself! Forex trading is not a place where you can play with your money. This business is very harsh, if you lose your money will decrease and if you have a winning trade your money will increase. Change your mindset and start treating forex the way it should be treated and you will see a significant change in your results.

      Step number 10. Keep adding money to your trading account. Even though you start with a small account you will be able to make it big someday. However, you should do all the things I mentioned before because all of these suggestions work in tandem. You can’t skip step 1 if you want to build a small account into something big. You also can’t skip step 6 or any steps in this list of suggestions. Adding money every month or every couple of weeks consistently will help you grow your trading account much quicker. You should remember that this is your business and you want to build it into something bigger. Every dollar you put into this trading is your active investment and after 2 or 3 years you will see amazing results. Guaranteed!

      Step number 11. Be patient. Before you even think about building a small trading account you should remind yourself that this process will take time and therefore, you should really be patient if you want to see the result. A $1,000 can turn into something very big in a span of 3 to 5 years. Whatever the amount you want to start with, you should put into consideration that this is not an easy thing to do but if you want to do it anyway you will reap a hefty reward in the end.


      Conclusion
      Building a small account is very much possible to do. There are logical steps that can help you to do it. However, many people fail when they try to do this. With this list you will be able to know what to do and avoid some pitfalls.
      You only need to read THIS ARTICLE to make money from forex trading,

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      • #4 Collapse

        (1) If you want to grow your capital then you have to keep patience because making a small capital in to big one takes time until and unless you trade blindly and or trade with your luck.

        (2) You need to make sure that you follow money and risk management because there are traders who trade without basic rules of forex in order to make their capital big sooner.

        (3) Above all we have mt5 forum which is the best way to make your capital big day by day. So always try to post quality posts on this forum because your quality of post matters here the most rather than quantity. Even if you post less on this forum but if your posts are knowledgeable and unique than surely you can make more bonus then your expectations.

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        • #5 Collapse

          Recommendations on how to grow trading capital to bigger amount of money.

          Growing our capital to have profits is the dream of all Forex traders. No trader ever starts trading with the aim of losing. Thus, it is no gainsaying that every trader desires the multiplication and addition to their capital, whether small or big. The good news is that this target is achievable in Forex trading. But it requires more than wishes to get this accomplished. It requires more of actions. Below are some recommendations that traders could follow to maintain and keep their trading capital growing.

          1. Never trade without using money and risk management : One of the fastest ways people lose money to Forex trading is not smartly managing their money. The practical way money can be managed in Forex trading however is by opening trades using stop loss and trading with mode pips.

          2. Good broker: It is also very important for traders to have the knowledge that it is not all Forex brokers that desire their wellbeing. Some brokers are actually on the mission of ripping innocent traders off. And because a retail trader has no other option but to trade through Forex brokers, the helpful thing to do in a situation like this is to be smart when picking brokers they deal with. Instaforex can be relied on in a situation like this.

          3. Trade only with the strategy that works for you: Also, another way traders can grow their capital is to avoid losing their money unnecessarily. And this can be done by having a working trading strategy and sticking to it. I understand the Forex market is complicated. And there will be times when traders would want to try new things but this is where discipline is most needed.

          4. Patience: This always appears simple but it is very effective and powerful. A trader needs to take it one step at a time. Growing one's money in Forex trading is not a day thing. It involves a lot of commitments and patience, because Forex trading is not a ponzi scheme or over night money doubler program.

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          • #6 Collapse

            RECOMMENDATIONS FOR TURNING SMALL BALANCE TO BIG IN FOREX.

            i. Do not select pairs that move too fast if trading with small amount of capital in forex trading. Doing that may cause the entire balance to wipe out completely. There are stages for trading some pairs of currency and they have to do with experience of the trader.

            ii. Keep targeting the support and resistance levels of the candlesticks because the prices show respects for them irrespective of the section of timeframe in which they form. Doing this makes a small account balance become big within limited periods of time.

            iii. The use of smaller section of timeframe is for him trading with small account balance. M1, M5, M15, M30 and H1 are for the use of any trader of this position and he should move closer to the platform all day. He should keep monitoring prices for any available market opportunity to use promptly.

            iv. Scalping strategy is for this type of trader. This buttresses the fact that smaller section of timeframe is perfect for his use. Scalping involves targeting but small pips within the limits of supports and resistances.

            v. The internet connectivity plays an active part in making this to be effective because an epileptic connection will make him lose many opportunities for perfect entry. In addition to that, indicators that give signals so quickly are good to make use of by the trader to avoid being frustrated while trading.

            vi. Selection of Metatrader 4 platform is very important here. Not all the platforms are good for small amount of money input in forex trading like the MetaTrader of Instaforex broker. Having a broker like this is good for a trader operating in this position. For instance, when you select 0.01 of the platform of Instaforex, you have risked $5 of your initial balance when indeed, using that in another platforms, you have risked $50 at a time!

            vii. Adopt the strategy of targeting small lot sizes against large number of Pips instead of using big lot size against small number of pips. This will prevent your account from being wiped out in the process of executioning.

            Note: A trader that fails to handle so well a small account balance in forex trading would not be able to handle big account balance when given. Trade responsibly.

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            • #7 Collapse

              What is a small account?
              There's no exact definition of a small account. We are likely talking about the cent and the micro account types. Initial deposit here starts from $1 and $5 respectively. Given the fact that the smallest order volume on Forex is 0.01 that corresponds to 1,000 units of a base currency, it's not really hard to do the math and calculate the minimum amount of money you need to start trading.

              To do that, consider the leverage you will use as well as the percent of the capital you are ready to risk in one trade and the number of open positions you want to be able to have at one time.

              Notice that if you are not sure about the calculations, you can always make some risk-free trades on a demo account or get a welcome bonus from the broker. These options will let you test not only the mechanics of trading but also the quality of the company's service.

              Problems of small accounts
              The jokes about size are not really funny, and yet the nature of problems you can face while trading with a small account indeed comes from the fact that you don't have a lot of funds at your disposal.

              This, in turn, means the absence of a big buffer against mistakes or unexpected losses. As a result, with a small account, it's necessary to be especially vigilant about managing risks. You will have to calculate the acceptable position size, use stop-loss orders and watch your risk/reward ratio and not just open a trade with arbitrary parameters.

              The biggest problem of small accounts is that smaller positions mean that profit would be smaller than the one you could get if you traded with bigger sums of money. In addition, you won't be able to make many simultaneous trades.

              As a result, even if your trades are successful, s small account will grow much slower than the big one. This can be a major psychological challenge for a trader: after all, who doesn't want to get more money fast? The fact that you put a lot of effort into your trading and it doesn't pay off big time may be very disturbing.

              Recommendations for trading with small accounts
              First of all, it's necessary to calm down and ensure that your mindset is positive. Everything has to start somewhere and a small account is not a bad thing to begin your trading career. After all, practice has shown that trading with small accounts can be as successful as trading with big accounts.

              Get comfort from the fact that with a smaller account you won't risk your financial well-being and yet you will be able to gain the invaluable trading experience, develop patience, discipline, and all other qualities that are good for a trader while making money in the process. If you have realistic expectations and look at everything rationally, you will be able to concentrate on the benefits of trading with a small account.

              That doesn't mean, of course, that you shouldn't aim for bigger things. Although this is surely entirely your decision to make, we would like to point out that there's a sense not to withdraw profit you get from a small account.

              After all, there's no other good way to make this account bigger, except, of course, investing more money of your own. At the same time, we don't recommend you to increase your typical position size every time your account gets bigger.

              Increase the size of your trades only when you are most definitely ready for that and do it gradually. This way you will be able to avoid rash steps while maintaining the sense that you are in control of your money and actions.

              Another tip is not to set daily profit goals: the market's situation is different every day, and you can't be sure that every day will offer you equal opportunities (you can actually be pretty sure in the opposite thing). The necessity of meeting a daily target will put you under useless pressure.

              You can set goals and track your progress and motivation but choose a bigger scale for that. In addition, try not to compare your performance with the results of others. Focus on what you are doing and on becoming a better version of your trading self.

              Next, a small account implies that you should be very active. Try to keep more capital at work: if you have free margin, look for more trade ideas. However, it's very important that in your quest for the quantity you don't cut corners on the quality.

              Do you remember that we have ascertained earlier that there would be less room for mistakes? Well, it means that you should be picky about the trades you make and go with those that have the highest probability of success. Here much depends on your trading system and methods of market analysts.

              In any case, make sure that you filter out bad signals, have confirmations from several tools of technical analysis and stay psychologically comfortable with every trade. When the price arrives to your target, don't be too greedy and take profit: even if you suddenly want more, no one prevents you from analyzing the market once again and making another trade.

              All in all, if you follow these recommendations, trading with a small account will teach you everything you will need to know for managing bigger sums of money. Of course, you won't make billions with a small account, but you will be able to practice and achieve decent results. Never regret the fact that you could have opened a bigger trade. Everything in life could be better, bigger, brighter and so on. Praise yourself for your success and move forward with steady steps - this is the most reliable way to have a big account someday.

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