How do you trade forex with a small trading account?
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Thread: How do you trade forex with a small trading account?

  1. #1
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    How do you trade forex with a small trading account?

    How do you trade forex with a small trading account?

    A lot of traders around the world want to trade forex but the sense of fear on their money is pushing them to experiment with a small amount to trade, in fact that this solution is a half solution it only preserves the rest of the funds that are not deposited in the trading broker.This simple amount that the trader has decided to deposit in the broker will go with the wind as soon as the stores start trading not because of the small amount but, because of not knowing how to trade this amount.

    The difference between trading a large account and trading with a small account:-


    Trading with a large account gives you the flexibility and complete freedom to trade on any financial instrument provided by the broker such as shares, brokers usually do not accept trading volume less than $1.
    Also trading with a large account gives you the ability to cover your losses or wrong decision while trading a small account you cannot easily err and it is not easy to correct errors.

    The trader must abide by the points we will remember:-

    1-Never underestimate your trading account:-

    Do not underestimate the trading account, which is the size of the trading strategy and not to open a trading center with the logic of what will I lose more? In fact, if you are unable to succeed in forex with a small account, you will often not be able to succeed with a large account.
    Do not break the profit and loss rule you set, for example profit 3 versus 1 loss (the profit point is three times greater than the risk).
    Follow a 1% risk rule (e.g. if the trading account is $1000, 1% will be equal to $10 you can lose $10 for each trading center only and of course applying the 3:1 rule will be profit $30).
    If this rule does not suit you first, you can adapt to it or if your account is too small to be able to implement this rule, we recommend that you open a micro trading account and we do not recommend that you easily break a 1% rule.
    Whereas, adherence to a 1% rule provides protection against opening wrong positions or a sudden event that results in a loss instead of profit or even a normal loss of stop losses.

    2-Do not deal with a small trading account as a source of income:-

    We do not recommend that you look at it as a source of income, but we recommend that today this account is small, and with learning to trade properly and adhere to the trading strategy and commitment to capital management will grow this account and tomorrow I will be able to rely on it as a source of income. "Some people turn to forex trading in order to leave their current jobs or trade the latest money to their hands so their interest is to make a profit or get rich quickly so, they do not normally succeed so to succeed in Forex you need to focus on the financial management of the account. "

    3-Choose the right pair:-

    If your account is small then do not go to trade on pairs where the points are higher than 1 like the US dollar versus the Turkish lira the value of the point in this pair is equal to 1.89 around 2 points, as it increases your losses. And also we recommend avoiding high-volatility couples like the GBP/JPY.


    In the end, we recommend that you follow the previous rules and abide by them because they are a compendium of experiences that many traders have experienced, and can also be applied to large trading accounts.

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  2. #2
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    A small account is really not easy to trade, the challenge for some newbie when they started this market is that their account was just too small to earn money and unfortunately that led to having a margin call same day they started trading, to succeed with a small trading account, one needs patience and a great discipline to accompany it, if not that adventure would be tough.

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  3. #3
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    Small account is for risky trading because small account is something like stop loss and you will not lose more than you have money in account. On the other hand small account is very good for scalping where trader can use big size lots and try to double an account per day. If trading will be safe so earnings will be very little and not worth of our time.

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  4. #4
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    Management is the key to handle such account. We are human and let's be honest we would not be happy earning cent with little amount of capital because we want to manage risk that's why it's advisable to invest better amount. However not everyone have such funds and so the best they can do is to invest the little they have and build a profitable trade for themselves. A small amount of capital can be doubled with compounding and patient too. So nothing is impossible.

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  5. #5
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    I believe trading a small account begin with having the right mindset, some newbies trade it without consequence like nothing to loose. To trade this with the mindset of not expecting toomuch to gain in terms of money but a medium to learn how to manage emotion, discipline, risk management and patience crutial trading skills to be armed with before trading large account

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  6. #6
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    There is the experience of many traders that 50 dollar accounts are lost because traders want to trade with 0,1 lot and earn money. Earnings of a few cents are nothing. But when traders invest 500 dollars and trade with 0,1 lot so they usually earn money because there is good risk and money management. So it is difficult to say how to do with small account.

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  7. #7
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    Trading account's size doesn't matter for having the winning trades. you only need to have proper knowledge, risk management, and patience to win trades. In the case, if you have all three qualities then you can make your small account into a big one but if you do not have these qualities then you can not save your huge account even.

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  8. #8
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    What keeps a trader going is their management and not necessary the amount they have in forex. If you can't manage a small capital, I don't think you can also handle a big capital in forex. Management is what will have to grow them, and its what every trader must have an attribute about and don't try to trade only when capital is big. Our account must be managed and if that its only a little amount that we can afford, we should be serious with it and manage them to easily.

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  9. #9
    Trader ola4real's Avatar
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    This is a very good article who will let forex traders know that the size of their forex account does not matter, what matters most is how the forex trader is using what he knows in forex field. Between the big investment and large investment, the main difference I see with them is the psychological difference in trading them. Although the small investment is frustrating at times, but with good expertise, traders will make it with them.

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  10. #10
    Trader cutiekc's Avatar
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    It is all about taking little risks and not over doing it. Because when you take on little risks then you will be able to trade even a little account. Furthermore, to enable the trader handle the account with little risks, I will suggest that the trader gets to use the cent account, because the cent account will really get to add to the ability of making use of little lotsize.

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