The biggest weakness in humans in their emotions. Though emotions are one of the most prominent qualities that make a human being so great, in business, you can’t afford to pay attention to your emotions. The top businessman man in Singapore never relies on emotions. To them, emotions are more like junk. They stick to the theoretical rules of investment and try to lead the life of an ideal businessman. This simple rule is applicable when you start thinking of becoming a successful trader. However, due to the big initial deposit requirement, many people fail to make a profit. But do you think the size of your account is responsible for blowing up the account? If you think so, this article is going to change your perspective.
Learn to utilize the leverage
Having a leverage trading account solves the problem related to the initial investment. Even with a small account, you can execute orders with decent volume. The size of your trading account doesn’t have anything to do with your losing trades. However, if you use the leverage in the wrong way, you can risk your entire career. Making some serious profit is all about finding the best quality trades. And to do so, you have to learn the perfect use of leverage. If you start trading with $1000, make sure you are not taking more than $10 risk in any trade. The winning trade should give you at least $30 profit. Thus you will be using a 1:3+ risk-reward ratio in each trade.
Improve your accuracy
Without improving your accuracy, it will be hard to trade with a small investment. The expert always tries to precise signals so that they can place the best trades in their Forex trading account. But becoming an expert trader in a single day is not possible. You have to think about your accuracy and trading skills. At the starting, focus on the demo account. Practice hard so that you can make the right decision at the right time. Forget about the statistics and try to be a part of the successful trader’s community. Though it can create significant stress in your mind this is the most effective way to make a profit from this market.
Focus on organic growth
Since you will be trading a small account, you have to focus on organic growth. By the term organic growth, we are referring to reinvest your profit to increase the size of the investment. Though you can make small withdrawals the majority portion of the profit should be reinvested into the market. By following this approach, you can expect to solve the problem associated with your trading capital in less than 2 years. But during these two years, you have to stick to your rules regardless of the market condition. The best way to gain control over your emotions is to consider trading as your alternative source of income. If you can do so, you can make a big change in your life.
Learn to take the high risk
This is something that you never find any free articles. Taking a 5% risk in each trade is perfect when you trade in a small account. But you have to understand the concept of risking such a big amount of money in a particular trade. Instead of executing 1-2 trades per day with a 1% risk, you have to aim for one good trade in a week. By using a technique you will be able to reduce the unnecessary hassle in this business. But no one can say for sure, you will make a profit from that aggressive trades. Things might go wrong and you may lose 5% of the balance. If you lose the trade, go back to the 1% rule until you can recover the loss. Once you are on track against start trading with the 5% risk factors.