How to Make Great Returns if You Have a Small Trading Account?
Find out more about my Online Video Forex Course – Click Here
#452: How to Make Great Returns if You Have a Small Trading Account?
In this video:
00:31 – How to make excellent gains with a small account
00:49 – The incorrect perceptions
02:07 – Questions from traders
04:00 – Losing traders blame the market
04:26 – What can you do differently?
05:06 – Trading on a prop firm account
06:08 – How much money do you need in your account right now?
07:11 – Choosing a Forex broker
I’m going to explain how you can make fantastic returns from your trading, even if you only have a small trading account today. Let’s talk about that and more right now.
Hey, Forex traders, it’s Andrew Mitchem here at the Forex Trading Coach with video and podcast number 452.
How to make excellent gains with a small account
And I want to explain all about how you can make some exceptional gains and returns through trading the Forex market even if your account is very small. And ultimately your account size today does not matter, but let me explain more.
The incorrect perceptions
You see the problem is most people think you need a large account in order to trade and to make money from trading and eventually to make a living from trading. But there’s more to it than just that. And let me explain what I mean. You see the issue that I see everywhere is that so many people get into trading with unrealistic expectations, and they might come to the market with a thousand dollars account or $5,000 account. And they think they’re going to be able to live on that. And of course you can’t.
And so therefore to try and make some meaningful money out of that, they start doing silly things. They’ll start scalping the market, trading, making a pip or two on one minute or five minute charts. Some people will try news trading. Some people will try what called Martingale, which is when you basically double your position size all the time. And eventually one of those trades will win and make up for all the losses. Some people trade without stop losses. All these kind of crazy things that people do, which is incorrect trading, but they do it because they have a small account size to start with. So you can see the issue that people have.
Questions from traders
And I get questions all the time from people and they say, “How much do I need to pay for your course? Things like that. And people then come to me and go, “Well, how much am I going to make?” And I’ll give you a great example. Right behind me here. I’ve got a US Singapore 12 hour chart trade open. Okay. So I’ve got three trades open on my account behind me. They’re all on the 12 hour charts, all took yesterday, all on our membership site, all posted. And I’ve had three trades close, three still open. If I close them all right now on those six trades, I’ll be up 1.8%, but I’ve only risked a quarter of 1% on each of those six trades. So I’d be up 1.8% if I close them right now. I’m not going to because the three still open have got a little way to go to profit. I’ll probably be up around 2-1/2% total if they all hit their profit target for the six trades, quarter percent risk per trade.
Now some people looking at that and go, “2-1/2%, that’s not very exciting.” I look at that and go 2-1/2%, but with only exceptionally small risk per trade is incredibly good trading. But I could quite easily say to you here now that I’ve risked 2-1/2% per trade instead of a 0.25%. So I’ve risk 10 times the amount. And I could then go and say, “Well, if these trades hit profit, I’ve made 25% in a day.” And that would be true. But the issue is is that my risk is 10 times greater. So therefore my gain, because I’m a profitable trader, is also 10 times greater. But you see the issue where most people who don’t know how to trade is they’ll start risking 2-1/2% of their account per trade and have losses and probably have all six trades lose. And all of a sudden they, 12, 15% down on their account in one day. And that becomes the problem.
Losing traders blame the market
And the issue then becomes is they then start blaming the market. They blame everybody else. Forex is a scam. It doesn’t work. Someone else tells you, you pass that on to someone else. They think that Forex doesn’t work. And so you see the snowball effect once that happens. But the whole thing happens because of lack of education and they don’t know what they’re doing and they’re not thinking properly. And that all happens due to a small account size.
What can you do differently?
So what can you actually realistically do about that? The thing that we are finding, just so many of our clients are doing, once they know how to trade and once they’ve been with us for a bit is they’re trading through prop firms. And I’ve mentioned this on quite a few recent video and podcast, and I’m just in the process now putting together a worksheet of different prop firms and the advantages and disadvantages of different prop firms and different programmes that they each have. And we’re also working towards maybe having our own Forex trading coach prop firm as well. That’s a few weeks away, but when I get that information, of course, I’ll be letting you know.
Trading on a prop firm account
But to give you a prime example, one of our clients over in the UK is now trading on a $750,000 prop firm account because he’s gone through all the stages and been profitable all the way. He’s now on 750,000. When he makes a 10% gain on that, which is $75,000, he’s on a 70/30 profit share, which means he’s up for 52,500 US dollars when he makes 10% on that account. And once he gets to that next level, his prop firm is then going to double his account. He’s up to one and a half million. So assuming he then makes another 10% on that account, and there’s no time limit on there. He’s in up for $105,000 on the 70/30 profit share. In fact, I think he goes to 75/25% at that stage I think. I don’t think he’s quite 80/20. I think that’s another level again.But you see what can be achieved.
How much money do you need in your account right now?
So going back to the very beginning, how much money do you need in your account size right now? Doesn’t matter. The important thing is you need to learn how to trade correctly with low risk, low draw down, high reward to risk trades and realistic expectations. If you do that, and that’s where we come in. If you can do that with our help, you imagine being like this guy in maybe another few months, on $105,000, because he’s made 10% on the prop firm’s fund, on someone else’s money. He doesn’t need a the 1.5 million himself. He just needed to come on board with us, learn how to trade properly, put some time and effort in and go through the stages of the prop firm. And that’s just one prop firm, of course. So that is one of the very simplistic, easiest ways that you can turn your trading into very, very high quality returns. All comes back to learning how to trade first.
Choosing a Forex broker
And if you’re looking at somewhere right now for you to put your funds, whether you’re starting out on a demo account or going to a live account, I can highly recommend you take a good look at Blueberry Markets. You’d have heard me talking about Blueberry Markets for years now. The reason is they’re so good. The reason is their customer support is the best you will find. They now offer the MT5 platform, as I’ve mentioned in recent podcasts, and I’m finding it exceptional. Good spreads, lots of markets to trade, of course, on MT5 it’s easier to look at different timeframe charts, like 12 hours and eight hours, six hours, cetera like that. And just really decent people. Have a look at Blueberry Markets. I’ve put a link to them on this video and podcast so have a look there. And I mentioned to them if you join them that you heard about them through a podcast or video just like this, and they’ll look after you really well.
So I hope that helps. Just remember, your account size today does not matter. Learning how to trade properly does matter. Do that. The funds will follow. I’ll see you next week.
Episode Title: #452: How to Make Great Returns if You Have a Small Trading Account?