Trading with small balance

after listening to all the compliments i just wanted to say i watched a trader take a 40.00 account to over 250.00 in one day…so it is feasible that with 50.00 he can be successful…i believe that he needs i good strategy and great money management skill. but after seeing the other trade make 240 ovenight.i say to the trader that is asking is something achievable i say it is…

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I started a $50 on the 19th of March 2020 and as of yesterday the 3rd of April 2020 my balance was $134.90 and I did not lose any trade within this period. How did I do it? My strategy was 0% greed, 0% fear of loss and 100% patience. I do my technical analysis and as long as I am sure I go for it. I do my best not to trade around the news. For a balance of $50 - $199 I do not use more than 0.01 lot size. My average profit per trade is between $3 - $7 on 0.01.

I started an $100 account on the 24th of March 2020 and as at close of the market last night the balance was $172.73. Again my lot size was always 0.01.

I wish you the best.

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Is this how I reply?

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Start with Demo account, practice for at least 6 months, perfect your strategy till it feels completely perfected. Then trade demo 3 months more.

I started with real account, 700$, lost 350 in two months.Lost about 300-400$ buying signals, just to understand that they don’t work ) Now I am trading demo for 3 months, have found strategy. Profit is about 100$ per month from 2000$ account.

And one small advice - there is one (but not only) important downside trading small account - you can’t take half profit with 0.01 size, and this technique is really crucual

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Bro you need to learn swing trading. I swing the euro dollar with 1k unit orders (0.01) and I’m doubling accounts using $50-$100. Easily. You just need a nice concept of support and resistance, price action, and patience. All you need is 1-4 orders a week. I went long in the Euro/Dollar @1.066 and ride that up to @1.1116. This was from the 20th of march to about the 30th. That’s a lot of pips and I rode it with a 0.01. over +100% so don’t let all the super conservatives tell
Your otherwise. You need patience and a decorated market psychology. HMU for anything brother. I’m 2 years in. No pro but I’ve passed my learning curve.

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Small account traders to trade markets that they cannot trade using cash. However, trading the same underlying stock using the options or warrants markets (both highly leveraged markets), only requires approximately 15% of the trade’s value in cash strong text

Thank you for sharing. Very good suggestions

Same technique here Donovan.

EURUSD, daily chart and just HMA. Had the exact same entry and exit prices as you did.

Hi, Nice to Hear from Tunisia…

How are you Guys?… Keep Safe

IGNORE WHAT EVERYONE IS SAYING.

YOU DONT NEED Blah Blah Blah… and more Blah Blah Blah…(That you already know).

Let Me Get To The Point:

It’s best to start with such a small account as Yours. £50 to £100

IT’S NOT THE ACCOUNT SIZE THAT MATTERs.

IT’S how good you are as a trader. (Remember I said Ignore everyone Else!)

Let me give you an example, often I start with 5 pounds account and take it over 50 pounds, and then I can open larger positions…

All in all I don’t get far, however I LEARN to capture lots of PIPS.

Before a strategy you need to have a plan in Forex.

FIRST STEPS

Get Tradingview account.

USE IC BROKER FOR ACCOUNT (I Have been through many, these guys I found best and offer almost Zero Spreads)… USE Australian as they still offer leverage 1to500, use Sharia compliant (Islamic) account which means you will not be charged overnight charges for holding positions.

Platform… Don’t use Meta Trader. (Remember I said Ignore everyone Else…. Just ignore them all….)

USE Ctrader… It’s far more user friendly and intuitive. Its Like Apple Iphone Vs Microsoft (Meta)

START ON DEMO FOR 3 MONTHS. (This is the right way of doing it)

But I know you must be eager to Enter the market, that’s understandable…. So Go Ahead….

WHEN YOU HAVE (With Certainty :blush:) blown your $75 account… don’t be UPSET…… Everyone Does…. And sometime the Market Teaches you Not to Mess with it. After Blowing then please refer back and start the process again.

If you can last in the market over 90 days, chances are you will find the Treasure Eventually…(refer to Pic… always keep it in your mind)…maybe within a year… Don’t Give UP…. Insha Allah (God Willing) This will change your Life. (Keep ignoring everyone else…I mean if they discourage you and say its too difficult or you need lots of capital… No You need the SKILLS and a bit of guidance)

To The Point:

Plan… MAKE MONEY (I Said Ignore everyone… :blush:…. We’re all here to make money)

HOW… Be a successful Trader.

HOW… USE MONEY MANAGEMENT (See chart and replicate on excel and use it everyday)

HOW… WEEKLY GOAL TO GET 100 TO 200 PIPS

(Even Less is fine, but Trade with a Set Goal… refer to chart to understand why and how)

How … Using Forex Strategies to Achieve Target Pips Weekly (I will give more details…. So wait….)

What Pairs … Just stick with the Majors…. This will mean you have less to focus on, quicker to understand them and get better in predicting their movements.

Journal All Trades …. Use The TradingView Long/Short tool to mark positions so you can refer back to learn later. Also start spreadsheet for the Journal. Highly recommend taking snapshots of before & after for reference late.

Strategies & Quick Market Structure (Based on Day Trading/Short Swings)

Identifying the Trend of a Market i.e Long/Short is the Biggest Part Of Trading.

Always Trade in Direction of Trend (Counter Trends for Pros, or you will lose sooner)

Higher Highs & Higher Lows on 4H chart means UpTrend. And when top reached or Lower Lows start Forming and Lower Highs… That’s started a Down Trend.

Entries are Not Random. You have to calculate and work out where market moves are happening & Why.

On 4H chart, lets say AUDUSD…

Highlight Major S/R based on previous 3 months – 2 years Data .

Highlight Supply/Demand Zones Where market makes big moves from.

The Reason that The Market moved that 70 pips or so in 4Hrs is because Banks & Institutions traded at that point. So we want to trade with them. The Good Thing is, Often market repeats itself by reacting at those Levels.

Now wait for the Market to reach another Significant Level (zones Where big moves happen from), and look for entries.

Trade with Reward to Risk 2:1. E.g 30 Pip SL and 60 pip TP. 30 to 40 Pip SL for beginners is good, gives room for market to move. Eventually you can tweak this down.

Before Trading – Have a Checklist to tick Off. If Criteria Met, Then Enter. (See my check List attached)

When Trading – Trade with Confidence. You will Have Wins and Losses. Even if you have Less than 50% winnings, you can still be successful if you stick with R:R.

Use S/R, Trend Lines & Fibs etc . The More confluences, the Better Trade probability.

All The Indicators are useless (hopefully by now you are ignoring everyone else). Idicators are useless because they are lagging and they will tell you … ah… you could have entered here … duh… its too late now.

Learn to Master Support and Resistance, Supply & Demand Zones… think like a Banker… they will only BUY / Sell at certain levels, and they make the moves happen.

So look for say 4 or 5 trades a week. Good Quality Trades.

Wait for them. Execute with Precision.

Resources

You Tube: Learn the basics, go through lots of videos on

Support & Resistance, Candle Stick Patterns… learn what they are showing

Fibs, Trendlines, Market Structure.

Sorry I’ve Run Out Of Time… I Couldn’t get through everything… structure above isn’t so greate either… I didn’t plan to write so much…
Also just realised the system didnt let me post more attachments as promised above… so get in touch with me and i can forward by email…

If I get your response I’ll get back with more details.

Anyway good luck, keep safe from the Virus.

Naeem

!

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This Below Chart I can Say is the SINGLE MOST IMPORTANT thing that can make you successful and see the potential.

You Can start with a small account and work out how your account grows with compounding monthly. as & When you have a bit more cash available, you can add it and start trading bigger Position sizes.

Eventually You want to Reduce The Risk Per Trade to 1%… which means you will have to lose 100 times consistently to Blow your account. If That happens, GO & Do Something Else… :frowning:
No… i’m joking… Try Again… Refer To that treasure picture I’ve Shared…

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Just a note - this is just to start you off with some of the common strategies.
Use this in conjuction with the Supply/Deman S/R Zones. If all Stars Aligned, Take The Trade.

Never Regret… Theres a 50/50 chance of getting it right :wink:

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My brother read margin level lessons, you will know why starting with a $50 account is like donating your money to any body in need. If you plan to start trading with $50, you better look for a job.
However, when you decide to demo trade please start with the money you intend to deposit on the live account. This will built confidence once you double it three times on the demo, then you can go live.
Strategies will depend on your personality. First identify a time frame that suit you, second try to get a pair that you fully understand in terms of its daily range. Control your emotions and avoid being greedy in this business of Forex. Never compete with anybody if you want to be a successful trader. Risk only 1% per trade and avoid over trading and revenge.
NB:Trading seems deception ally easy but its not. Practice, practice and practice until you identify your own style and strategy.
When setting your daily goals focus on pips not dollars. That’s to say 200- 250 pips per week but ensure you set realistic goals.
Demo trade for a year before you go live trading and have a desire to learn you will one day be a successful trader.

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Number 8 and 9 are very wise words ! I’ve learned the hard way,blowed up a live account 2 times(minimum deposit was €200).So i lost the hard earned €400 within 3 months of opening a live account with minimal to nihil trading experience.Some of the people i know that are trading forex did pay some “mentor” all through they have been succesful,i didn’t want to pay someone for the same “basic” information.Through a podcast i’ve listened i discovered babypips and thank god. I’ve already learned so much and i still do.I keep a diary with summary’s from the stuff i learned at babypips,which helps a lot.I’m currently trading with a demo account and i plan to do this until i get a good understanding of charts reading before going to a live account again.

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that is a good start mate. i remember the first time i am trading real money only 5 usd. it was 10 years ago. trade only with money you can afford to lose and always withdraw your profits.
if you can’t make consistent profit with small balance, don’t try trade with big account size.

This is important information

Glad to hear your eating good from forex brother. Much success to you

Hi,

I hope you are doing well. You have a really good question there.

It’ possible to grow your account, but the odds are against you. That’s why you need to ask yourself if losing this money is an option, since 70-80% of the traders are losing money, with or without experience.

If the pain of losing 10, 20, or your entire account is too high, don’t do it for now. But if this is more an experiment, it may be worth doing it after a few weeks of tests (why not try with fake money than going directly to the real?)

Also, don’t forget about the costs of sending money, how will you withdrawn your profits and how much will cost? Many brokers will send by bank wire and will charge for small withdraws, so this may cost a chunk of the profits.

What concerns me most is that you don’t have margin to leave some trades run. Let’s say each microlot needs at least 1 daily ATR, let’s say 100-200 pips. So you cannot do long term or swing trades, you will then depend entirely on scalping and luck.

Try to work some daily strategies using channels. I use Linda Raschke’s version of Keltner channels for some very specific trades ( when more then 5 conditions are meet, from Taylor techniques to my own analysis) and it’s working amazingly.

But then you need to go and find your style, be very very careful with drawdowns (how much you can lose in one trade or one day), and test it.

Good luck!

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Let me reply directly to the OP because I don’t know if all the replies will be read.

Let me make this short.

Can it be done? Yes.

Can you do it? I don’t know.

Everyone has their own opinion based on their own experiences. Myself included.

Facts would be these.

  • It’s possible to trade with ANY amount. Leverage helps here.
  • If you have ZERO experience you can still get lucky.
  • If you’re going off luck, it will run out. And you may get hit hard.

As I said in the other thread. I’ve seen someone read the market wrong but win because of movement due to news. So while everyone else was losing he was winning. Until the markets calmed down.

Some of the users posted good advice, but take everything and learn from it. Make your own style. Some of the things posted by @NQ seem good, but I wouldn’t discard MT4. My reason for that would be the available plugins/indicators/EAs. I personaly use those to make my life easier - things like daily high/low instead of manually going on and marking those on the charts each day. Tedious. cTrader is a great platform, and the tutorials they have on YouTube are awesome, but there’s something about experience that you can’t go around - you have to go through.

I’ve had the cTrader videos saved on my phone and listened to them when I drive or when I’m not working. And over time I keep reviewing them as I learn more. I then realize that simple statements have much weight to them. Patience. Greed. Fear. Three words that you don’t understand what they mean until you’ve been in this for some time.

I agree with @NQ that it’s not the account size. I’ve taken a nearly blown account when I was learning - from $14.08 back to $80+ within a week. I’ve taken $100 to over $1,200 in two weeks. Gains are always possible. But big gains are high risk with small accounts.

If you can’t afford to lose your $50, you need to practice first on demo. Find or develop a strategy that works for you on demo then transfer to live. As a rule I personally believe that a minimum of 3 months should be taken to determine if a system is viable.

Let me give you an example of a system to test out on demo. DO NOT DO THIS ON LIVE.

  • Check the direction on H4/D1. Do this by using a 20 EMA on the D1. Switch to Heiken Ashi (HA). If price is above the EMA and the last HA candle is green then it’s most likely going up. If it’s below the EMA and the HA candle is red, it’s most likely going down. This assumes RED candles are bearish and GREEN candles are bullish.
  • Following the above initial trend rules, if you have a bullish candle under the EMA or bearish above the EMA - there is no trade. Wait for the condition to be present.
  • After verifying the trend direction on D1, switch to the H4. Change chart style to line. Zoom out and draw horizontal lines in areas where the peaks are. These will represent your general zones close to your entries.
  • Identify the highest and lowest point on the H4 chart.

Now I’ve opened MT4 and opened the EURGBP as an example pair for this with half of the rules above. Based on that price seems to have started a down trend.

  • Wait for price to get back to a higher point or zone you drew on the chart to then sell.

Based on this I would sell if price:

  • Gets to one of the zones drawn.
  • Gets to an even number near one of the zones drawn.
  • Gets close to the high but does not break it and is turning again.

With all of that you should have an established amount of cash you’re willing to lose per trade. This is your money management and risk management.

There’s so much more, but it’s hard to place it all in one post. But that’s an example of trading with very few indicators. We could go further into looking for patterns, using fibs, etc, etc. But start simple. Find something that works. Stick to it. Once you’ve mastered it - refine it.

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Just a note - this is just to start you off with some of the common strategies.
Use this in conjuction with the Supply/Deman S/R Zones. If all Stars Aligned, Take The Trade.

Never Regret… Theres a 50/50 chance of getting it right :wink:

1 Like