FW Xiaobian found that in forex trading practice, most of us maintain a trading account amount between $500 and $5,000.
You might think this smaller account would be at a disadvantage in a more volatile market.
In fact, it is just an illusion of lack of confidence.
The biggest confusion most people face when trading is thinking that they can become a profitable trader in a faster way “if only they have enough money.”
But if you measure profitability in terms of a week or two, it’s not scientific.
The range is at least six months to a year.
So how on earth can a novice forex trader successfully trade a small account?
To be honest, the size of your trading account has little to do with whether you are a successful forex trader.
What if you can’t handle a small account, let alone a big one?
What you need to remember is that although this goal is not easy to achieve, it can be done if you practice trading discipline and change the way you think about the market.
Many people think, “If only I had more money, I could make a quick profit in the market and quit my job.”
In fact, it doesn’t work!
How can small funds step by step do big?
Calf finance and economics here with you in detail.
First, firmly their own trading principles survival first, development second;
Only do day short;
Operate no more than 3 times a day, try not to make orders when the daily profit exceeds the target set by oneself;
Only 1 variety per day;
Don’t trade too often (over), but trade like a sniper;
Once you have a trading plan in place, you need to track your progress in the forex trading log to maintain the integrity of your trading discipline.
If you don’t maintain a transaction log, you may lose discipline and focus.
Don’t trade more money than you can afford.
[Investment principle] : Avoid risks, control profits!
Never full operation, stable profit is the best policy!
Two, set up their own trading concept to establish the opportunity to have the idea every day, patiently wait, waiting;
Establish the idea of playing a long game and overcome the impatience to win;
Establish the concept of win without loss, reasonable use of stop loss;
Establish the idea of falling bag for safety, timely turn floating surplus into solid surplus.
[Investment attitude] : know how to choose, learn to give up;
Withstand loneliness, withstand temptation!
Three, use a set of fixed profit tactics to find a moving average you are most familiar with as a guide, grasp the direction of the day.
Trade in only one direction, only long above your moving average and short below your moving average.
Find the time of day when you make the most money and try to use that time to your advantage.
Daily review, learn from experience and improve your tactics.
[Profit tactics] : You have to have your own trading system and execute trades strictly according to that system.
While it’s important to have confidence in your trading, it’s one thing to believe that your system will work over the long term, and another thing to believe that you know how to trade forex.
Once a trader becomes overconfident, he exposes a number of potential problems.
His final trading position exceeded the system.
Or, once he stops, he may try to jump in the same direction again, thinking he has the right strategy.
That’s why it’s important to stay humble and keep your emotions in check, even during a winning streak.
If you don’t, your trading account could suffer long-term losses.
The best solution is to stick to your plan and keep your ego in check!
Conclusion: there are always two voices above the market, one tells you that the market will fall;
The other is telling you that the market will rise later.
There are no days when the market is uniformly bullish or bearish.
Because in that case, there will only be one kind of people in the market, all of them making money or all of them losing money, which is not in line with the law of the market.
So the right posture for trading is to consistently and steadily do the right thing, get in whenever there is a condition for you to get in, and get out when there is a signal to get out.
According to FW, trading is about quality, not quantity, and it’s possible to make a lot of money on a small account if you’re sure you can do a good job, double your investment, and make sure you plan, persevere, and stay patient every step of the way.
