Unlike common misconceptions, trading accounts don't initially have to hold millions for you to reel in success. Making mistakes on an account with $1000 of investments, and failing on one with over $10,000 have a huge difference. The latter will enable you to learn, whereas the former will only yield pressure.
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| Successful Ways to Boost a Small Trading Account |
A small trading account can prove exceedingly useful over big ones, here's how to up your trades on a small account:
1. Take Measured Risks: Small trades call for big returns. The best way to ensure this is by taking risks. While investing $5000 in a trade, risk 5% of the capital - risk $250-$500 per trade. This gradual increase not only ensures better returns but also leaves you unfazed in the event of a loss.
2. Make the Most of Leverages: Leveraging is the act of investing money provided by a broker for a potential increase in financial returns. Though a risky act, a wise leverage backed by strong market analysis will help you maximize the chances of profits and minimize losses hugely.
3. Increase Your Position Margin: Trading is all about growth. To see to it that small accounts can one day bloom into big ones, you have to gradually increase the position sizes. Take the above said $250 risk to a $300 risk.
4. Don't Try to Time the Market: Opportunities seldom knock in trading. Instead of speculating the occurrence of the next one, capitalize on the current chance! Trading will not always offer you opportune moments that are tailor-made; when you see a good trade, don't miss it.
5. Don't Treat Trading like a Gamble: From no angle does share trading serve as a method to make quick riches. To become impeccable at trading needs years of dedication and practice. The first step being - aiming to learn, not to earn. When you're equipped with a well-planned trading strategy, success has no choice but to follow.
6. Risk-reward Ratio: To be put simply, without risk there is no reward. However, risk too much and the outcome remains the same, or worse. Adhere to the 1% risk rule - where no matter how much you invest, your losses never exceed 1% of the invested capital.
7. Never Go All-in: Trading has the notoriety of draining out irrational traders. When investing, never put in all your money. Segregate your earnings and savings in such a way that no dollar's loss in a trade affects your day-to-day life.
Trading isn't about making quick money; it is about strategizing in ways where you can consistently milk the market without getting kicked back! At WesternFX, we offer our clients the best-in-class trading accounts and guide them through the complete process. For availing stellar and well-equipped trading accounts in Sri Lanka, reach out to us today.
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