Have
Small Account and Eager to Trade? Great, Here's the Tips for you
"If
only I have more money" , yes that would be the first phrase you would say
to yourself after seeing your tiny-winny account. The biggest challenges is,
how to be a profitable trader with this situation. If we tried to measure our
profitability ove maybe one or two weeks, yes sure we may get very lucky with
big account and happily make a great of change in a twist. Now let me ask you
something, if we give it all back right after that, does it really matter?
Because just like any other forex strategist said, profitability should be
measure over a much longer period of time, let's say six months to one year.
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| Forex Trading with Small Account |
In
fact, if you don’t know what you’re doing, it can mean just the opposite; that
you can lose MORE money faster than if you had a small account.
It's all about Mindset
Mindset
is top of everthing. Yes I know that "I want to make a lot of
money on trading" is a dreamy words. Why don't we change that
phrase in to "How can I make a lot of money trading?" sounds
more interesting right? This words will change the way you see your dream, the
way you put your focus in to. This will change everything.
Why?
Because what we need is be the expert in process. Be meticulous in process. Be
the best in process. Small or Big Account, if you have no idea about trading
process, then it would be just a big ZERO. If you believe that money is the
key, then you will risking too much capital and over-trading.
Your trading mindset NEEDS to make a switch from
‘money’ to ‘the process’. I’ve said it before and I’ll say it again; if you
want to become a successful trader you have to focus on the process of trading,
not on the money.
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| Forex Trading with Small Account |
"It's
OK to trade with Small Account"
Why
don't we all trades like we're a millionaires. It's fun with realities
situation. Before that, let me take you back to real-realities just so we know
where we should stand :
- We won't be taking lots of trades and probably will trading in small position (since we want to learn manage our risks properly) for months.
- We will be motivated by learning the process, learning how to trade properly, learning the habits. Don't try to dramatize the recovering of losses, that's the habits.
As
I mentioned earlier…you probably feel like you take one step forward and two
steps back sometimes with your trading. On a small account this can be
maddening because you feel like you’re never going to build it up.
Well,
you need to also focus on holding onto profits. Don’t give back your winnings
on the very next trade because you over-traded and were greedy. Imagine you are
trading a 100,000 account…let’s say you made 10 grand on a trade…how would you
feel if you immediately gavethat much money
back? Well, if you are giving back $100 winners on small account, you would be
giving back $10,000 winners on a big account. You need to get all of these
issues fixed before you trade bigger amounts of money. So, once again, be glad
you don’t have a big account yet and focus on the process and on becoming a
good trader.
Conclusion
How big your trading
account is plays no importance in your overall trading performance or trading
skill. Sure, if you have a bigger account you can trade larger position sizes
and potentially make more money, but if you don’t know HOW TO TRADE, all the
money in the world won’t do any good.
So, learn how to trade first, focus on the
method and enjoy the journey. Stop worrying about ‘making money fast’ or
‘getting rich and quitting your job’, because the less you focus on those
things the more likely they are to happen
