It can be quite a dream come true, when you are able to grow your trading account into a sizeable sum. Many successful traders like to talk (or even brag!) about their special techniques or share trade secrets that will teach everyone how to make large profits in forex. But many times, they forget to mention what hard work it is! However, for those new traders who do put the time and effort into learning how the foreign exchange market works, they will find potential for growth. The wisdom is to start small and then as you get a substantial number of successful trades under your belt, you can kick it up a notch. Here are three of the most useful tips to know when you’re ready to grow your trading account and how to go about doing it in the safest way that will keep the risk level down.
Table of Contents
Tip #1
Say you’re starting out with 1k in your account. Or maybe even 3k. That’s a sizeable amount and you don’t want to risk losing it. Your point is to increase it, so you need to be careful about risking any portion. Starting from a $1,000 point, consider keeping your trade level down to $10 per trade. Will you get rich at 10 bucks a shot? Not likely. But will you learn the tricks and trades of playing like the pros? You can certainly come close to that goal! But don’t make the mistake of thinking small. Instead of thinking of a mere 10 dollars when you place that trade, think of it as $100! Or $1,000! When you’re trading large sums, you tend to be much more careful about taking risks. Learn those concepts on small trades so that when you begin placing larger orders, you will understand how to protect your investment. Stay disciplined and keep your focus. Once you have a few weeks or months of earning, then slowly begin to increase your trades.
Tip #2
Keep your profits in your account. Once you begin winning, it can be tempting to take that money out to make a purchase or to take the wife out for a night on the town. Stay disciplined. Avoid the temptation of wiring out your profits. Slowly, you can set a goal of living comfortably off of your forex trading profits.
Tip #3
Set long term goals. Some traders like to think that they’re pushing themselves by setting daily profit goals, but it doesn’t really work like that. Anything can happen in a day, and there can be events beyond your control. Long term, such as weekly or monthly, goals are a much better plan. It can also keep you from feeling the urge to make a bad trade, just so you can try to meet your daily goal. Remember that there is a lot of hard work involved before you get to a place of consistent profits, so take your time getting there. Stay in it for the long run!
About Carson Derrow
