Growing Small Trading Accounts Into BIG Ones
This is what new Forex traders have been looking for! The answer on how to grow a small account into a big account that would solve all the world’s problems.
In this article, I will try my best to break down what goes into growing a small account and “flipping” it, as most would like to call it.
To double your money nine or ten times in a row. There are certain aspects you need to understand about Forex trading before you attempt to flip an account. This article is not for the faint-hearted. A lot goes into doing something like this, so brace yourself.
Does your account feed you?
Can you afford to lose the money that you’re trying to flip in the first place? If you tried to quadruple said account and you fumbled, so it dropped onto the floor and cracked into a million pieces, would your standard of living be affected? Would you still be okay?
If your standard of living would be affected and no, you would not be okay, you are not able to try and flip an account (or anything for that matter).
When most people see these prominent “Instagram” traders who are flipping $10 into $20,000 in a week or month, they think that’s how trading works.
In their defense, most of them don’t understand what the Forex market is, and this is their first time seeing what trading can do. I need you to understand the difference.
These guys and girls on Instagram (some of them) ALREADY HAVE MONEY. They’ve already “Made it” trading Forex before they started trying to flip accounts and show off to people.
So when they try and make $100 into $10,000, they don’t care if they blow the account doing that. But you? Do you need that $100? If that account gets blown, you’re most likely back to square one.
Trying to run up an account with this month’s rent is not smart investing, buddy. In fact, you’re setting yourself up to fail. If you cannot afford to lose the money you’re trying to flip, don’t do it! DO NOT TRY THIS AT HOME!
Treat it like a savings account
Maybe this is not what many you want to hear, but many great traders advise you take this route when you are trying to grow your account size.
They suggest having a stream of income on the side while you learn your craft and get better at trading. You can use this income to fund your account over and over again WHILE trading this money.
Over time, you trade bigger as your balance grows, and soon your profits will be bigger than your initial stream of income. Voila! You’ve grown your account maybe 10x in a short space of time.
So, continually depositing a certain amount every month to get that account fed and get you trading a lot bigger.
If your strategy doesn’t make you money, putting more money into it would mean losing more money. Nobody wants that. If this is the case, work on the skill some more and get yourself a winning strategy. Once you’ve done that, then you can use this approach.
There’s are certain firms who are willing to fund people who can prove their trading skills and show that they can manage risk while extracting a profit from the market. If…
- You have been trading for quite some time
- You have refined your edge.
- Are now ready to trade big.
- But you lack substantial funds to do so
There are a few trading firms that are willing to fund you if you pass their “challenges.” I will break down these firms in a future article. Still, you’re welcome to do your own research on companies like FTMO.
These companies are a saving grace for those of you out there that feel like you’re sitting on a killer strategy that is just waiting for significant funds. So make sure you’re already profitable and consistent before you approach these firms.
It should just be a matter of going to execute what you already know and getting the funding. You’re not going to these companies to learn anything. You have to prove your skills.
Then you can easily take the profits you make from that funded account (after they take their cut) and fund your account or live off those profits.
Most traders took this path right here, especially in the past before education became so widely available. I’m talking about traders who built such a magnificent edge that they didn’t need any capital injection and the edge paid for itself, This is not impossible but is extremely difficult.
When I say a “magnificent edge” I mean an edge that can grow accounts at a rapid rate while risking a reasonable amount of capital.
This method is probably the slowest because you have to put in the time to learn and refine an edge to such an extent that it becomes a killer strategy. You then have to execute that strategy over many years.
Very few people are selling an edge like this. You aren’t likely to find this edge from a course, but you could find a killer trader and be mentored by someone with such an edge (which would speed up the process), though I wouldn’t bet on it.
This is where you decide what path you take. Each method gets to the same place… PROFITABLE. But the choice is yours.
Us traders are trying to achieve consistent profitability. After that, take it and run with it as far as your imagination will take you.
Don’t bet the farm.
Don’t lose your shirt.
Cut the L.
Keep the W.
Small accounts FAQ
Yes, you can open an account with some of the brokers that have a minimum deposit of $10 or less. It is not recommended though. There isn’t much learning you can do with an amount like that.
Yes definitely! But you have to consider that not everyone has the same expenses. Make sure you have sufficient capital to trade before living off your trading.