How to grow small Forex trading account?


Starting with a small trading account is actually a beneficial method, when it comes to the forex market. Do you know how to grow a small trading account in Forex? 

March 14, 2017 | AtoZ Markets Some may think that it is pretty unbeneficial to start your trading career with a small trading account. However, I believe that such idea stems from not concentrating on right things.

Growing forex accounts between theory and application

The start in forex trading is always better to be with small amounts, and of course this has reasons.

In the first place, starting with a small amount of money to trade gives some kind of inner relieve that the risk - if any – would be as small as you specify it.

To take off in the forex trading world, a sum of as low as $10 would work, while that still depends on the broker you decide to deal with.

The duration in which measuring profits starts from 6 months, up to one year. That period is supposed to be enough to get acquainted with the basics needed in the forex world, during which you will have found your way around assessing your performance as a novice in the forex trading field as well.

It is vitally important not to rush in choosing the broker. Give this task a considerable time for research and consulting about which forex broker to go with.

Forex trading success depends on you!

Having a good relation with finance and relative sciences and affairs definitely helps. However, the aforementioned does not mean those away from such a scope have no chance to start learning.

Trading forex in fact resembles to a far extent other kinds of trading. The focus in forex is restricted to dealing with currencies and commodities, which can be crude (type of oil) gold, silver, gas, and such kind of things.

To take an example, we talk about trading currencies, where forex trading means buying a currency on a regular basis while selling another one. Provided the currency you bought was higher in price than the one you sold, you can then then close the position with profit. If the case was the opposite, then this means a loss.

Hence, anticipation and market observation are two basic pillars in the ABC of forex trading toward successful operations.

 

Known proven forex trading strategies

  • Scalping - they are very short-lived trades, possibly held just for a few minutes only. A scalper tries to quickly beat the bid/offer spread, and skim just a few points of profit before closing. This type of strategy typically uses tick charts, like the ones that can be found in MetaTrader 4 Supreme Edition. This trading platform also offers some of the best forex indicators for scalping. In addition, the Forex 1-minute Trading Strategy can be considered an example of this trading style.
  • Day trading - These trades are exited before the end of the day, as the name suggests. This reduces the possibility of being adversely affected by large moves overnight. Day trading strategies are looked at as perfect forex trading strategies for beginners. Trades may last only a few hours, and price bars on charts might typically be set to one or two minutes. The 50-pips a day forex strategy is a good example of a day trading strategy.
  • Swing trading - Positions held for several days and traders aim to profit from short-term price patterns. A swing trader might typically look at bars every half an hour or hour.
  • Positional trading - Long-term trend following, seeking to maximise profit from major shifts in prices. A long-term trader would typically look at the charts listed at the end of the day. The best positional trading strategies require immense patience and discipline on the part of traders. It requires a good amount of knowledge regarding market fundamentals.

 

Important advice on forex trading

 

  • Do not take a lot of trades, trade strategically

 

  • Manage the risk wisely, as if you trade big money

 

  • Profit is not the goal in a cent account, learning is: follow a proven strategy, stay disciplined

 

  • Do not think about recovering your losses

 

This article was last updated on May 03, 2019 by Redwan Eid

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