Successful Trading with Small Trading Accounts

Every experienced trader knows that profit has to be measured over a longer period of time, whereas, a novice trader believes that the bigger the trading account: the more money.

The fact of the matter is; if you don't know what you're doing then your account balance won't matter because you'll lose it all anyway. A good trader can make a big profit on any account whether big or small.

Trading can be quite tricky at times and you might find yourself wondering how you went wrong with the most basic of all things because you don't have the proper strategy in mind. Having a lot of money in hand and no trading experience is as good as having no money at all.

The problem lies with the trader themselves because of their approach towards trading. Consider yourself lucky if you don't have a large trading account at the beginning because it's better to make a loss of a few than of a lot.


First and foremost; change your outlook of things. Think of 'how' rather than 'when', sooner isn't always better in these cases. Think about what you would've done had you had a larger trading account instead of 'if' you had a larger trading account so and so would've been easier.

You might think you're goal-oriented by wanting to make more money but it isn't about that, its about how you'll make that money.

Think as if you have that large account. Here are some logical analysis:

  1. You have all this money and what you need is to make more, you can't lose any because that'll only damage your credability.
  2. Money won't be the motivation since you already have that, discipline is what'll drive you at this point to not lose any.
  3. Since this is a game of possibilities, imagine the possibilty that you had some losses. Your goal does not have to be on how you'll recover that and be more emotional but how you can avoid losses in the future.

Why Are Small accounts Hard to Build

Small accounts can be pretty frustrating at times because you'll constantly be wondering,'when will it get bigger?' The truth is that novice traders often get greedy really quick. They are quick to hand over their profits onto another trade but the problem lies here, for example; had you had a larger trading account and got greedy quick and resorted to handing back your winnings on a recent trade. Ever $100 dollars lost on a small account would be almost $100,000 on a larger account! So be glad you're starting off with a smaller account.

Trading on a smaller account isn't a disadvantage and the trader shouldn't feel handicapped as if he is restricted whereas others are not. If you practice and build up experience on a smaller account than you'll surely maximize profits soon. However, if you just wonder 'what if' then you'll never have the experience required to do better.

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