How to trade the market with a small account


Everyone wants to start their trading career with a big trading account. The new traders often blame their small trading account for losing money in the Forex market. The size of your trading account does matter but not at the initial stage. If you fail to manage a small trading account you can’t be able to deal with a big sum of money. Even if you get a million dollars in your trading account, it won’t take much time to lose your entire investment. Unless you can trade a small account like a pro trader, you should never trade the market with big investment.

Today we are going to highlight some amazing tips which will help you to trade the small account. If you follow the tips, you can expect to make a decent profit from this market.

Trading with a stable mindset

Some of you might think that trading the small account is much easier than dealing with big funds. In reality, trading the small account is one of the most difficult tasks in the investment industry. You can’t make a profit in the long run unless you learn to manage your greed. Most of the novice traders in Singapore lose control over their emotions and lose a significant portion of their investment. In fact, they try to make their account big by taking a huge risk. At times such a trading strategy might work but eventually they blow up the trading account. You need to trade this market with a stable mindset or else you will lose money.

Trade with a low leverage account

In order to lead your dream life based on trading, you must deposit a decent amount of money. But the rookie traders often try to compensate this problem by using a high leverage trading account. They simply use the leverage and execute a trade with a big risk. Even if you get access to the best online trading platform, there is the assurance you will win money from a certain trade setup. No one really knows which trade will help them to make a profit. So, it’s very obvious you should never trade the market with a big risk. But controlling your emotions at the initial stage will be extremely difficult. For this reason, the pro traders often suggest trading with a low leverage trading account.

Follow risk management rule

You might have a small amount of money in your trading account but this doesn’t mean you have to trade the market with huge risk. There is no reason to risk any amount of money with false hope. Always follow proper risk management policy regardless of the size of your trading account. The pro traders prefer to trade with 1% risk factors since it allows them to embrace the losing trades. However, you can take 2-3% risk in each trade, given that you know the nature of this market with an extreme level of precision. Unless you have extensive experience in the retail trading business, you should never risk a big sum of money.

Embrace the loss

Losing trades are inevitable. The new traders often increase the risk factors in each trade to increase the account balance. Though the aggressive trading strategy might help in some aspects but considering the long term goals, it’s just a suicide mission. Try to embrace the losing trades since it will protect your trading capital. You might have to lose a few trades in a row but this is not the end of your trading career. If you trade with a proper risk management policy, within a short period of time you can easily make a decent profit. Try to increase your balance over the period of time by executing quality trades. Never try to look for shortcuts in the Forex market since it will ruin your trading career. Be a confident trader and trade with discipline.


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