How to Grow SMALL Forex Account with little money (No Bullsh*t Guide)

Summary

This video script offers five strategies to grow a small trading account, emphasizing the importance of risk management and disciplined trading. It advises against risking large portions of the account, taking only high-probability trades, and setting a consistent risk per trade. The narrator also warns against the 'small account mentality' and encourages traders to focus on the process rather than the money, suggesting a gradual increase in position size as the account grows. Lastly, the script highlights the power of compounding profits to achieve steady growth.

Takeaways

• 💰 Risking 100% of your trading account can lead to quick gains but is not sustainable for long-term growth.
• 📈 Aim for a steady growth in your account equity curve, avoiding sharp rises and drops.
• 🎯 Focus on high-probability trades that have multiple confirmations like candlestick patterns, market structures, and support/resistance levels.
• 🚫 Avoid low-probability trades, such as those during consolidation or with low trading volumes.
• 🛡 Implement strict risk management rules, typically risking no more than 1% of your account on each trade.
• 🔢 Use a position size calculator to determine the appropriate lot size based on your risk per trade.
• 🌐 Maintain a proper risk-to-reward ratio, ideally 1:2 or 1:3, to ensure potential profits outweigh potential losses.
• 🛑 Overcome the 'small account mentality' by being patient and not forcing trades, which can lead to taking low-probability trades.
• 🧘‍♂️ Develop trading discipline by following a plan and minimizing beginner mistakes to improve trading skills.
• 📊 Gradually increase position size as your account grows, while still adhering to risk management rules.
• 🌱 Embrace the power of compounding by reinvesting profits to accelerate account growth over time.
• 👍 Engage with the content by liking, commenting, and subscribing for more tips on growing a trading account.

Q & A

What are the five strategies mentioned in the script to grow a small trading account?

The five strategies are: 1) Risking 100% of the trading account on each trade with a 1:1 risk to reward ratio. 2) Taking only high-probability trades with multiple confluences. 3) Setting risk per trade and using a position size calculator. 4) Overcoming the 'small account mentality' and focusing on the trading process rather than the money. 5) Slowly increasing position size as the account grows.

Why is risking 100% of a trading account not recommended for consistent growth?

Risking 100% of a trading account on each trade can lead to doubling the account quickly, but it is not sustainable in the long term due to the high risk of going through a losing streak and losing everything.

What is meant by 'high-probability trades' in the context of the script?

High-probability trades are those with multiple confluences, such as candlestick patterns, market structures, trend lines, and support and resistance levels, indicating a high chance of the trade being successful.

How does the script suggest managing risk per trade for a small account?

The script suggests using a position size calculator to determine the appropriate lot size based on the amount of money you're willing to risk per trade, typically starting with 1% of the account balance.

What is the 'small account mentality' and why is it harmful for traders?

The 'small account mentality' refers to the desperation and constant pressure to force trades and make money quickly, which often leads to taking low-probability trades and ultimately blowing the account.

Why should traders with small accounts avoid trying to 'flip' their accounts?

Trying to 'flip' a small account involves taking excessive risks to make quick gains, which is not a sustainable strategy and can lead to significant losses due to the high probability of encountering a losing streak.

What is the recommended risk to reward ratio for trades according to the script?

The script recommends a risk to reward ratio of at least 1:2, or preferably 1:3, meaning the potential profit should be at least double or triple the potential loss on the trade.

How can traders with small accounts increase their position size as their account grows?

As the account grows, traders should slowly increase their position size while still adhering to their risk management rules to allow for making more money on trades without increasing risk proportionally.

What is the importance of compounding profits in growing a trading account?

Compounding profits allows the account to grow gradually over time by reinvesting earnings, which increases the account balance and allows for taking trades with larger lot sizes, ultimately leading to more significant earnings.

What is the script's advice on the importance of discipline and reducing beginner mistakes in trading?

The script emphasizes that discipline and reducing beginner mistakes are crucial for becoming a better trader. Following a trading plan and risk management rules helps in trading objectively and avoiding emotional decisions that can lead to account losses.

How does the script suggest traders should approach the idea of compounding their account?

The script suggests that traders should not withdraw their profits but instead let the compound effect work by leaving profits in the account, which increases the account size and allows for taking larger trades that can yield more significant profits.

Outlines

00:00

🚀 Strategies to Grow Your Small Trading Account

This paragraph introduces five strategies for growing a small trading account. The speaker emphasizes the importance of taking high-probability trades, setting a risk-to-reward ratio, and the pitfalls of risking too much of the account balance on a single trade. The summary points out that while doubling the account with one trade is possible, it's not sustainable in the long term. The speaker also stresses the need for a steady account equity curve and encourages viewers to stay focused on the content to learn how to grow their accounts effectively.

05:00

🛠 Risk Management and Position Sizing for Small Accounts

The speaker discusses the importance of risk management for small trading accounts, advising against the 'small account mentality' that often leads to impulsive and low-probability trades. The paragraph covers the use of a position size calculator to determine appropriate trade sizes based on the risk per trade and maintaining a risk-to-reward ratio of 1:2 or 1:3. It also touches on the psychological aspect of trading, suggesting traders with small accounts to mentally increase their account balance to reduce the pressure and urgency to trade frequently.

10:03

🌱 Cultivating Discipline and Patience in Trading

This paragraph focuses on the psychological aspects of trading, particularly the 'small account mentality' and how it can lead to poor trading decisions. The speaker advises traders to be more disciplined, follow their trading plans, and reduce beginner mistakes. The importance of focusing on the process rather than the money is highlighted, along with the idea that mastering trading discipline and risk management is crucial for long-term success in trading.

📈 Gradually Increasing Position Size and the Power of Compounding

The speaker explains the strategy of slowly increasing position size as the trading account grows, while still adhering to risk management rules. The paragraph emphasizes the benefits of compounding profits by not withdrawing them, allowing the account to grow larger and enabling the trader to take on bigger trades. The summary also includes a bonus tip for viewers to engage with the content and hints at additional tips for a potential part two of the video.

Keywords

💡Small Account

A 'small account' in the context of trading refers to an account with a relatively low amount of capital. In the video, the presenter discusses strategies specifically tailored for traders with small accounts, emphasizing the importance of managing such accounts carefully to avoid high-risk trading behaviors that could lead to significant losses.

💡Risk Management

Risk management is a crucial concept in trading that involves the identification, evaluation, and prioritization of risks followed by coordinated efforts to minimize, monitor, and control the probability or impact of unfortunate events. The video stresses the importance of setting clear risk management rules, such as risking only a small percentage of the account on each trade, to prevent the account from being blown due to uncontrolled risks.

💡High Probability Trades

High probability trades are those setups or opportunities in the market that have a higher likelihood of resulting in a profitable outcome based on various indicators or market conditions. The video suggests that traders with small accounts should focus on such trades, as identified by multiple confluences like candlestick patterns and support/resistance levels, to preserve capital and increase the chances of success.

💡Risk to Reward Ratio

The risk to reward ratio is a fundamental concept in trading that compares the potential loss to the potential gain on a trade. The video emphasizes setting a risk to reward ratio of at least 1:2 or 1:3, meaning the potential profit should be at least double or triple the potential loss, to ensure that the trades are worth taking from a risk perspective.

💡Confluence

In trading, 'confluence' refers to the simultaneous occurrence of multiple technical or fundamental indicators that suggest the same market direction. The video mentions that looking for at least four confluences can increase the probability of a successful trade, as it provides more confirmation of the trade setup's validity.

💡Small Account Mentality

The term 'small account mentality' describes a mindset where traders with smaller accounts feel an urgent need to make large profits quickly, often leading to impulsive and high-risk trading decisions. The video warns against this mentality and advises traders to instead focus on the process and quality of trades rather than the size of the account.

💡Position Sizing

Position sizing is the process of determining the number of units of a security to be traded at a particular time. The video advises using a position size calculator to determine the appropriate lot size based on the amount of money one is willing to risk per trade, which is essential for maintaining proper risk management.

💡Compounding

Compounding in the context of trading refers to the process of reinvesting profits back into the trading account, allowing the account to grow at an increasing rate over time. The video encourages traders to let the power of compounding work in their favor by not withdrawing profits and instead allowing them to accumulate and contribute to the growth of the account.

💡Discipline

Discipline in trading is the ability to consistently follow a trading plan and adhere to risk management rules, regardless of emotions or market conditions. The video highlights the importance of developing trading discipline to avoid common beginner mistakes and to ensure long-term success in the market.

💡Lot Size

Lot size is the quantity of a particular asset that a trader decides to buy or sell in a single transaction. The video suggests that as a trading account grows, the lot size should be increased gradually while still adhering to risk management rules to allow for making larger profits without compromising the account's safety.

Highlights

Five easy strategies to grow a small trading account by 10x.

Risking 100% of your trading account on a single trade can lead to significant gains but is not sustainable in the long run.

A steady account equity curve is preferable to one with drastic ups and downs.

The importance of focusing on high-probability trades to preserve capital.

Confluences, such as candlestick patterns and support/resistance levels, are key indicators for high-probability trades.

Avoiding low-probability trades like those during consolidation or with low trading volumes.

The necessity of risk management and setting rules to avoid blowing the trading account.

Risking only 1% of the account per trade as a common rule, with adjustments based on account size.

Using a position size calculator to determine appropriate lot sizes based on risk.

Maintaining a proper risk-to-reward ratio of at least 1:2 or 1:3.

Overcoming the 'small account mentality' which leads to taking low-probability trades and risking account stability.

Mentally increasing account size to reduce trading urgency and improve patience.

Focusing on trading discipline, reducing beginner mistakes, and following a trading plan.

The importance of slowly increasing position size as the account grows to leverage compounding effects.

Compounding profits by not withdrawing them, allowing for bigger trades and faster growth.

A bonus tip on the power of compounding for gradual account growth and a steady equity curve.

Engagement call to action for viewers to like, comment, and subscribe for more trading tips.

Transcripts

are you struggling to grow your small

account do you always end up blowing

your small account i've been there and

done that so i want to show you five

easy strategies that will allow you to

10x your small account so the easiest

way to grow your small account is to

risk 100 of your trading account

so if you have one thousand dollars in

your small account and you risk 100

and they'll be betting 1 000 on each

trade right so let's say you have a one

is to one risk to reward ratio

and guess what you want that trade then

congratulations you have managed to

double your trading account so you won

one thousand dollars

and you have managed to double your

trading account and now is that two

thousand dollars because you risk 100 of

your account right yay you made

1 000

but what's the downside

yes you can double your account with one

trade in just like a few hours

but is this something that you can

consistently do

every single month over the next one

year

or the next five year or 10 years the

answer is no because it's only a matter

of time before you start going through a

losing streak and you will end up losing

everything this is what your account

equity curve should look like it should

be going up steadily it should not be

like go up a lot and then come down to

zero all right so if you want this to be

your account equity curve watch this

video till the end and i guarantee you

that you will be able to grow your small

account if you apply whatever i'm about

to teach you so i need you to be laser

focused monk mode baby just put away all

the distractions and just focus on what

i have to say for the next few minutes

the first strategy is to only take high

probability trades you have a small

account so you do not have the luxury to

trade normal trade setups because you

want to preserve your capital so that

when the high priority trade set up high

probability oh my god that is so hard to

un pronounce a high property

oh my god i lost my train of thought so

basically you want to preserve your

capital so that when a high probability

trade setup comes along you are able to

take that trade so what counts as a high

probability trade

it depends on your strategy

for me a high probability trade is where

i have multiple confluences telling me

that i should enter for the trade so

honestly i normally look out for at

least three but to make it a high

probability trade i look for at least

four confluence the more confluences the

higher probability of you winning that

trade so confluences are basically

things like confirmation right like

candlestick patterns market structures

trend lines support and resistance

levels all this stuff so a low

probability trade would be like trading

during consolidation or when there are

very less trading volumes and there's

like small candlesticks etc

and if you have been trading for a while

chances are you have like a gut feeling

on whether you're gonna win or lose that

trade and we all know that feeling right

we all know that feeling and sometimes

you just have to trust that guard

feeling to tell you that okay this is a

high probability trade enter

and if you guys are wondering why i keep

like looking on top is because i'm

looking at the monitor which is like

displaying the slides the second

strategy is to set your risk per trade

risk management is boring i know alright

but boring works

all the strategies i'm sharing with you

today are not the most interesting

strategies like martingale strategy or

flip a coin to determine whether you

should buy or sell

but these strategies i'm sharing with

you today

they work even though they are boring so

the most important rule to grow a small

trading account is

to clearly set your risk management

rules

without a proper risk management plan

there is a higher chance that you will

blow your trading account so my advice

for you is to control how much money you

are risking per trade on each trade the

common rule is that you should only be

risking one percent of your account on

each trade but i understand that one

percent on small account like a hundred

dollars account is only one dollars

so adjust this according to your account

size like you might want to risk more if

you have a smaller account ultimately it

depends on how much are you willing to

lose per trade are you comfortable with

that amount if not use a smaller lot

size and how you determine the lot size

is by using a position size calculator

you can just go google any position size

calculator and it will allow you to

determine what log size should you be

using based on the amount of money

you're risking per trade no matter how

much money you risk per trade you must

stick to a proper risk to reward ratio

of

1 is to 2

or

honestly i look out for 1 is to 3

meaning that the potential profit should

be triple or at least double the

potential loss on the trade the third

strategy is to stop trying to flip your

small account

guys i know this sounds

counterproductive

but trust me i really need you guys to

trust me on this one you need to stop

trying to flip your small account all

right here's why

most retail traders with small trading

accounts have this disease called the

small account mentality is like the

small dick energy all right but it's

it's small account mentality and it's

this mentality that is causing you guys

to blow your account and continuously

fail to make money in the market so the

small account mentality happens when you

are constantly looking for trades and

desperately trying to force money out of

the market and this will cause you to

take a lot of

low probability trades like the one you

see on the screen right now and these

low probability trades causes you to

lose money

traders with big accounts do not feel

the pressure or a need to trade they are

more relaxed

they are more patient and this results

in them making money faster than the

small account mentality trader the small

dick energy trader there's this trick

that you can do just mentally add two or

three zeros at the end of your trading

account balance

and if you do this you will take a lot

of urgency out of trading that you might

be feeling right now and you won't feel

like you have to trade every single day

and take every single trade and this

will definitely help you grow your small

account as cliche as it sounds you need

to focus on the process not the money so

there are a few things that you need to

start doing right now number one be more

disciplined work on your trading

discipline things like using a small lot

size and following your trading plan or

follow your risk management plan and

also you should be focusing on making

less mistakes you know how when you're

just starting out you make a lot of

beginner mistakes like over trading or

using a lot of sizes it's way too big

for your account or

not following your trading plan all

these are mistakes that you can try to

reduce so as you try to reduce these

mistakes

guess what

you are becoming a better trader and

when you become a better trader the

money will come so obviously these

things are so hard to do like they're so

difficult to master things like trading

discipline and following your risk

management plan it takes a few months to

master all these things or even a few

years right

but they are so important if you really

want to become a successful trader or a

millionaire trader you need to master

these few things like

becoming more disciplined or making less

beginner mistakes or following your

trading plan following your risk

management plan this will really allow

you to trade objectively instead of

letting emotions clog your trade clock

your judgment and end up blowing blowing

that account the fifth strategy is to

slowly increase your position size

as your account gets bigger and bigger

you need to start using a bigger lot

size

but you should still try to stick with

your risk management rules so an example

is the one that you can see on the

screen right now let's say right now you

have a hundred dollars account like a

small little hundred dollars account

right so the lot size that you should be

using is obviously the smaller lot size

the 0.01 that's the smallest lot size

that you should be using or that is the

correct lot size that you should be

using so as your account gets bigger as

it grows right so as you win a few

trades in a row or you're becoming a

better trader so you see your account

starting to grow so maybe after a few

weeks it grew to 1 200

right so in this scenario you should be

increasing your lot size you should be

slowly increasing your lot size

as your account gets bigger

why because if you want to grow your

account fast you need to start making

more money right and how you make more

money is by increasing your lot size and

you also still need to stick with your

risk management rules let's say you have

a 100 account right now and you risk one

percent that is only one dollars but

then if you have a one thousand dollars

account and you reach one percent that

is

ten dollars obviously you are going to

be making more money on the 1 000

account so this is exactly why if you

guys want to grow your small account

fast like super fast you need to slowly

increase your position size as your

account gets bigger and bigger and let

the compound effect do its thing here's

the bonus tip for those people who are

still watching this video

you need to compound your account you

should not be withdrawing your profits

you need to let compound effect do its

thing compound effect is like what the

eight founder of the world or something

but basically when you don't withdraw

your profits right you leave your

profits inside your account your

accounts get bigger and bigger and this

allows you to take

trades that have a bigger lot size and

this will allow you to make more money

on those trades so you need to really

focus on compounding that account and if

you are able to compound that account

you are able to grow your account

gradually over time and you will look

something like this the account curve

looks like this

like literally like this because that's

the power of compound effect so if you

guys have learned something i need you

guys to smash the like button and

comment down below if you guys want to

see a part two because i've not shared

with you all my tips yet i've still have

some other tips that i want to share

with you guys in a part two so if you

want to see that video i need you to

like and comment and hit on the

subscribe button to join the tribe if

you haven't remember you're just one

trade away boys