If your trading account is somewhere in the range of $2000 or less, we are going to consider that very small trading account, and it means you focus has to be on building a consistent track record and building the confidence as a trader.
As you grow as a trader and track your record becomes consistently profitable each month, you can proceed to trade larger sums of money.
If you don’t have access to more money, you can look to an investor, friend, and bank or prop firm for trading the funds.
If you have a small trading account, your primary goals to trade it successfully are to do the following things:
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3 Important Goals to Trade Small Trading Account
1. Forget about money and instead become engrossed in mastering an effective yet easy trading strategy like price action.
If you focus more on the process of trading instead of making money and becoming rich, the sooner the money that you desire will find its way into the trading account.
2. Create a trading plan off of the price action trading Strategies you have mastered
A forex trading plan is required for succeeding long term in markets because it gives you an objective daily guide to follow and will lay out all entry, exit and money management strategies so that you are not only trading on a whim every time you open up charts.
3. Once you create the trading plan, you are going to need to track the progress in forex trading record book so that you can stay accountable and disciplined.
If you don’t maintain a trading record book, you are probably going to lose the discipline and focus because you do not have a tangible piece of evidence that reflects all trades.
Managing your Money on a Small Trading Account
Managing the money in a small trading account: it’s no different from how you would manage the money on a larger account, except that you obviously are trading smaller position sizes per trade. Whatever you do, don’t get greedy and trade too large or over-leverage on a small account, this is a common emotional trading mistake, and it kills your trading account faster than you think and greatly inhibits your chances of becoming a successful trader.