How to manage small account like the professional forex trader
Forex trading is such a lucrative business where the potential income greatly depends on upon the investment. There is a misconception among the traders that bigger account is a must to become profitable in this industry. But in reality, size doesn’t matter at all at the initial stage. Many new traders get carried away with their emotions by trading the market successfully for one or two months. But trading success doesn’t come within in a month or two. You have to be profitable at least for one year to declare yourself as a professional trader. Consider small trading account as blessings since it will teach you how to trade the market with the extreme level of discipline. The main benefit of trading with the small account for the rookie traders lies within the potential risk. Almost every forex traders blow 2 -3 trading account before they even think about break even situation in this industry. So no matter how small or big your account is, the initial investment is always going be blown up due to human emotions. You might be thinking that you have traded the forex market successfully with a demo account for more than 1 year. So, you won’t be losing any money in the real account since you know to deal with you loses. But in reality trading with demo account doesn’t involve any emotions. When you go live with real money there are lots things that will dramatically mislead you from your basic trading principle and you can’t deny the fact. You will gradually learn to control your emotions by losing money in the forex. The less you lose in the real world the smarter investor you become in the financial world.
You might be wondering so how to start trading with a small trading account as blessings. Before that, let us discover another true fact of the forex industry. Let’s say you have the trading account of 30k USD which is a very decent amount to lead the life as a starter in this industry. But don’t get carried away. You still don’t have the test how it feels like to lose real money. Believe it or not, you are going to blow your first account but by the blessings of a big account, the journey will lengthy. To be precise smaller trading account will help to control your emotions by losing less money in this industry. There are many traders who live with the misconception they are not getting any real success due to small trading accounting reality they are just giving them a layer of false hope and ignoring the fact that they can’t trade. Even, if you can trade with 1k USD for more than 1 year than you will become a successful trader for sure. You will learn how to manage risk efficiently and still withdraw one from your trading account. Small account actually develops your trading psychology and gives you the mental strength to deal with your losing trades. After trading the market for a prolonged period of time you will notice that the account size doesn’t really matter. But of course, you must maintain consistency to get these feelings inside you. If you talk to all the professional forex trader then you will see that they are not confined with their account balance rather they trade with the percentage. All of them calculate their risk and reward in terms of percentage. Basically, this allows the traders to trade with 100 USD for learning purpose. The first priority of the new traders should be learning. They should commit themselves to the learning section rather than making profit. They must create a boundary of self-discipline so that they can deal with the bad trades very efficiently.
There are enormous benefits of trading with the small account at the initial stage. You will be trading very less since you know that you don’t have too many rooms to afford extensive risk with such small account. Small account means small lot size. This will help you to learn lot size scaling in a whole different way. You will be extremely careful in choosing the right lot size since you know you can’t afford to risk more than 3% of your trading account if you truly want to be successful in this industry. Eventually, if you practice this you will see that it has turned into your habit which will help you enormously when you trade with big accounts. Most importantly you will be satisfied with the big account after a year or two since you will truly understand the risk associated with forex trading. The most common mistakes that every forex traders make at the early stage is of their trading career is they focus way too much on their profit. Trading with the small account will help you to focus on your potential pip gain which will subsequently give a huge positive impact on your near-term trading career. Most importantly this will help you safeguard your hard earn deposits.
Summary: There are many few traders who have verified profitable track record in this industry. This is due to the fact that human emotions will always lure to take high risk. And the moment when you take high risk in the financial market is the moment you start losing your grip to your trading discipline. Professional forex traders never lose their hard grip since they know this market will kill them at the single shot if they are indiscipline. The small account will help you learn the art of forex trading way faster than big account. It’s a fact that you will be making tons of mistakes at the initial stage of trading. Due to your account size, you will get away with your mistakes with very less cost and consider this cost as capital expenditure of learning forex trading. Never think about your trading balance rather concentrate on your performance and continuously try to learn from mistakes. Ultimately after a year or two, you will consider yourself as the luckiest person to start your trading career with a very small account.