I’m assuming many are in this situation, i am certainly familiar with it, but does anyone have any idea how to get around this or what can be looked at, or any success stories or not?
Im sure this will help many others, also just let me know how many are out there as there may be a niche here, i dont know im just throwing this right out there as i guessin its a common issue.
I just answered this very question on other thread.
Say you have a forex system that can make 2% profit per week but you don’t have any money to start with. You’ll never be rich, right??
Wrong! The secret to forex success is in the rapid compounding rates.
If you open a forex account with $10, and add an additional $10 to it every week, you’ll be a millionaire in 7.5 years (taxes not included :))!
Assuming you can pull off that 2% per week figure, of course. And that you have the discipline to stick it out the whole 7+ years. Your first year you’ll make less than $900, so you can’t get depressed and quit.
I didn’t start with quite that small an amount. I started with $50 and after a few months of success I added $1000 more, then after a couple more successful months I bumped it up to $3000 and have been growing it up from there ever since.
Oanda is the broker you want if you have a small account. They don’t work in lots sizes, so you can trade any amount you wish. You can literally open an account with $1 and trade fractions of a penny per pip if you wanted to.
The other thread was the NickB method thread. The post I was answering was a little off-topic for the thread though, it’s not really about growing small accounts.
I am in a similar situation as you. I don’t have much money but have a trading plan that is i believe is very profitable.
Now, I know what good MM is and I certainly don’t adhere to it…right now.
Because of limited funds I only started with 300. But I put the maximum lot size possible for single trades that I know 90%+ will go in my favor. So I do risk MUCH more than is ideal, but it’s only temporary…and I’ve been trading long enough to know when this type of trade is warrented.
See, because like you I didn’t have much money to start I figured I’d take frequent risky trades to get my account size up. Once I hit 10k I’ll trade sensibly…probably risking no more than 10% my account size with averaging about 5%. But until I get there, I’ll trade more aggressively.
You just need to make sure you know what you’re doing. I traded from 300 to 900 in the last 3 weeks…which means I’m risking far more than I can obtain. But again, because of my high win rate I can take those chances.
Best bet for you is, unless you are very confident in your plan like I am, to do what Phil stated. That’s the safest way…I’m just impatient and can afford to play it riskier.
Just work and earn a few thousand dollars to start (with some kind of side job). It should cost you a maximum of a few month.
This kind of start is much better than starting directly with trading with less money (when you are absolutely sure that you have a winning system!). Your $/h should be much! higher with normal work at the beginning and so your bankroll grows much faster.
I think its profitable because my account has consistently grown since I started using it. I’ve traded it for about 6 months on a small account and time frame and recently went to a longer one…which significantly increased my win ratio.
With the larger account size I’ve been trading it since the second week of may and have only had 1 week end up less than I started.
EDIT: Also, I usually get 2 - 4 trades per week that go for anywhere from 30 to 100+ pips per trade. They could generate more but I usually go between s/r levels to play it safer.
Ok so you KNOW its profitable, not think, which is what i was trying to get at ;).
Ok, sounds interesting, i dont understand how your win ratio increased when you went to a longer time frame? Im assuming its simply because your strategy uses the candles as the same, but they are ibviously larger, proving a better profit.
So how many pips a month are we talikng on average?
Im liking the safety aspect, very wise, you can always play later when you’ve got some more zeros in there!