In today’s article, I will tell you How to Grow a Small Trading Account in 2 Easy Steps. If you are thinking that you have got a small trading account and that is why you are unable to grow it, then it’s just an illusion, and through this article, I am going to clear it.
Many traders think, “If I had traded with more money than I would have made more profits.” If you consider your profitability over a few days or a week, then surely you may get lucky and make a huge amount of profit for some time, but what if you give all your profits with interest in one or two trades? Will you be able to handle that loss and the pain of losing money? The answer to the question is definitely not.
For any professional trader, developing trading skills are far more important than the account size. In reality, when you scale up your account size nothing much happens, just your mistakes become costlier. So, you need a proper trading mindset and discipline if you are willing to increase your capital in trading.
Unfortunately, when traders make profits with a small account, they always think ‘I would have made more money if I had traded with more capital’, but they never think about this when they make a loss.
When you lose money in your small account, it’s definitely going to be less than that big account with which you are willing to trade. So, if you want to become a professional trader, then you should know when to scale up your capital and when not to.
Here are some advantages of trading with a small account-
These are the advantages of trading with a small account that you should know before you scale up your account.
It is hard to grow a small trading account because the brokerage and other commissions are continuously eating your profits, and that is why you probably feel like you take one step forward and two steps back sometimes with your trading. On a small account, this can be frustrating, and you may feel like you are never going to grow it.
Well, if you have a small account, then you have to focus on holding your winning trades and try to manage the risk of your capital so that you will not give back your profits. If you are doing this over a long period, then you will be able to generate good returns from your small trading account, and then you can think of scaling up your account size. The point one needs to understand here is, if you are a beginner, then focus on the trading process. If you are thinking of scaling up your account, and if you haven’t developed good trading skills yet, then your mistakes will become costlier as compared to a small account size.
Trading with a smaller account size is not a disadvantage, especially when you are a beginner. Focus on your trading plan and psychology first because they will play a significant role in your trading career and not your account size.
So, don’t be afraid to make mistakes from your small account, but when you commit a mistake, learn from it so that when you scale up your capital you will not make that same mistake again. Also, focus on the right trading process and try to enjoy the journey. In the beginning, do not try to think of making tonnes of money from small account sizes because trading is a long game, and you have to be patient throughout this journey.
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