How to trade in a small Forex trading account
Trading with a small capital is a very challenging task. The majority of the retail traders are failing to make a consistent profit since they break the rules while trading the small account. If you look at the experienced traders, you will understand why trading small accounts is considered a risk approach. If you start to trade the market with a big account, you can easily make a decent profit and expect to earn more money from this market. But many pro-Singaporean traders are trading with a small account and making a decent profit. Let’s learn some amazing steps by which you can trade with a small account like the pro traders.
Lower down the leverage
The first thing which you should do while trading with a small account is lowering the leverage. Taking too much risk and trying to earn more money from this market is a very big mistake. And if you get access to a high leverage account, you can’t control the greed to make more profit. The frustrated traders often increase the risk to a great extent to earn a huge profit from this market. But this is not the proper way to execute the trade. You can’t increase the risk exposure and trade the market with aggressive steps. So, if you start trading the market with lower leverage, you can expect to make a consistent profit without having any trouble. Think about long term goals and try to improve the profit factors over the period.
Trade with price action signals
When you analyze the CFD market, make sure you are not trading the market without following the price action signals. The price action trading strategy gives the trader a unique profit-taking opportunity. Once you learn to trade this market with the price action signals, you can expect to make a big profit with tight stops. The moment you start trading the market with a tight stop is the very moment you start making big profits from this market. Stop thinking about the aggressive method and try to learn the conservative trading technique. Learn the price action trading strategy using the demo account and you can easily become a skilled trader.
Invest a small amount of regular basis
You need to invest a small amount of money regular basis and only then you will be able to increase the size of your trading capital. You might start to trade the market with small capital but this doesn’t mean you will be always using low investment. If you can manage to earn some extra money from other sources, reinvest the money and try to increase the capital. Unless you have $10k in your trading account, you don’t have enough money to trade. Always remember, trading is more like dealing with the complex price movement in a very organic way. So, taking too much risk to increase your account balance. Focus on the organic investment and you can make big profits as the account grows.
Stop trading the news
Those who trade with low capital should never trade the major news. Trading the major news is more like dealing with a shark in the water. Unless you are skilled, you are going to lose money. Learn about the high impact news and protect your trading capital by not participating in the Forex market. Once you start to avoid the major news, you can slowly execute the trade with a high level of accuracy. Forget the fact, making a consistent profit is more like placing big volume trades in the volatile market. Trying to protect your capital should be your main concern. Since you will be trading with small capital, you must trade this market without taking too much risk. And no matter what, you should never try to make a profit in major news. Once you learn to follow the conservative trading technique, you will get confidence to trade with small capital.