How to Profit as a New Trader with a Small Account

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#403: How to Profit as a New Trader with a Small Account

In this video:
00:24 – Email from a guy who is looking at starting trading
01:05 – Joining a group of like-minded successful people
01:59 – Real examples from this week
03:12 – Profit from other traders
04:22 – Client mentions trade live on the webinar
05:00 – Learn the “How To” by following other traders
07:03 – Walk before you can run
07:17 – Our 12th birthday is in May

How can you profit in the Forex market if you’re starting with a smaller account and you’re starting out as a new trader? Let’s talk about that and more right now.

Hey traders, it’s Andrew Mitchem here at The Forex Trading Coach with video and podcast number 403.

Email from a guy who is looking at starting trading

Now, this week I’ve received an email from a guy over in the U.K. who’s actually in the army, and he’s saying, “Look, I’m looking at leaving, but I want to ensure that when I start trading, I’m actually going to make some money. How do I do that? I’m new to this, I don’t know anything about it, and my concern is that when I start trading, because I’m new and I don’t know what I’m doing, I’m going to lose money and I’m going to lose confidence, give up, and it’s just not going to work. So can you give me some suggestions?”

And I went back to him and I said, “Look, there is nothing more powerful than being involved with a group of successful people. It doesn’t matter what you want to do.

Joining a group of like-minded successful people

If you’re into sports, you’re going to learn how to be good at that sport, let’s say, from sports groups and mentors, tutors, coaches. If you want to do good things in music, you go and join a band and you learn how to play as a group, that type of thing.” And I said to him, “Look, to be honest, trading is no different. Yes, you can do it alone. Yes, you can find things online and you may or you may not eventually make it work for you. But the problem is, is that eventually question is the problem, and what can you do to ensure that?” Obviously, this guy’s in the army, he’s a team guy, he works hard as a group, et cetera. And I said, “Look, all you have to do is exactly the same as that, but find someone like that in trading.”

Real examples from this week

And I want to give you some real examples from this week. These are real actual trades that we’ve taken, because I said to him, “Look, just look at this week as an example.” I said, “Well, February just gone, we had 6.2% on our daily trades, so you could have followed along with that.” Because my point to him was actually about why not follow good traders and profitable people so that you’re growing your account while you’re learning, rather than just throwing money away on just random trades and losing trades? So from this week, we’ve had a trade on the weekly charts that closed out with a 4.2 to one reward to risk on the Australian-Canadian dollar. It’s actually from the previous week, but it closed this week 4.2 to one. So risking half of 1% on that trade, 2.1% gain on your account. How’s that for confidence, just one trade?

On our forum site this week, we’ve had trades posted on the 12 hour, the eight hour, the six hour, the four hour, the two hour, the one hour, 30 minute charts, all profitable trades for people to follow along with. We’ve had daily trades that have gone well. Our breakout’s gone well. We’ve had a trade yesterday. This was an interesting one and a prime example.

Profit from other traders

As I was putting together my weekly live webinars for clients yesterday, yesterday afternoon, my time, up popped a post on our forum site saying, “Canadian yen, buy trade six hour charts.” One of our clients popped it on there and said, “Look, this is looking really good. When the candle closes in 10 minutes, this is looking good.” I was preparing the webinar. I went to look at the Canadian yen, and I wrote back to him and I said, “Look, this trade looks fantastic. I’m taking it.” And so I took it, posted it on the forum, put the screenshot on there. People could follow along because they get notified of posts like that.

And the trade has hit full profit, and on that Canadian yen trade, I made a 3.1 reward to risk. So half percent risk, again, just over another 1.5% account gain. Our daily trades closed just 10 minutes before I made this video, Friday morning here in New Zealand. 2.9 to one reward to risk. Again, pretty much a 1.45% account gain. That was posted on our membership site earlier this week.

Client mentions trade live on the webinar

On that live webinar last night my time, Hayden, a client of ours, mentioned towards the end a 30 minute chart trade on the pound-yen. We looked at it and we go, “Yep, Hayden, awesome. Thank you for writing that down.” He typed it in live on the forum. Made a 1.9 to one reward to risk. Pretty much a 1% gain, half percent risk on that trade. And currently right now, as I’m making this video, I’ve got live trades which have all been posted on the forum site or on our daily trade suggestions on our membership site. Currently, I’m up 1.5% on open trade as well.

Learn the “How To” by following other traders

So you put all that together and you think, “Well, as a new trader, wouldn’t I really want to be part of this?” Yes, the results are great, but it’s about learning how to do that as well and learning in real time following people, and basically you are educating yourself with a group of knowledgeable, experienced, real life traders. And that, to me, is the way for you if you’re a new trader or you’re starting out with a small account, is that you have to learn to do that and to see those trades and take those trades, and there is no better way at doing this. This is three different methods as well. By the way, we’ve got our forum site, our daily trades and our live webinars, so three different places to go and follow along and profit from what we’re doing. So follow good profitable traders while you’re learning and you’ll then develop into, like Hayden, who put the pound-yen on there, on the forum site, like the guy, Gillo, who put the Canadian yen on there as well on the forum site yesterday for me to follow.

And I profited from that because I wouldn’t have seen that trade otherwise. It popped up there, and to be honest, I wouldn’t have taken the pound-yen on the 30 minute chart either, because normally I don’t look at 30 minute charts. But there it was on the forum site. So I myself have profited from two of our clients posting really good trades this week. It happens all the time. There’s plenty other examples as well. But, look, if you are starting new, you’re starting with a small account, and you want to ensure that you make some money, but also you’re making a percentage gain, that’s the important point. Don’t look at it and jump in and go, “Well, on a $1000 account, I might’ve made $200 or $100 this week, and that’s not enough to live on.” You can’t expect to do that on a $1000 account. But what you have to do is go, “Well, look, I’ve made 10% on my account with low risk.” And that’s the important point, because eventually your account, when you get good, will grow, you’ll be able to put more money into it. Your account will grow itself.

Walk before you can run

So walk before you can run. Start small, but start properly first time. I hope that helps. I’m going to put a link on this page to our course. If it’s of any interest to you, you know where to find us. We’ve been doing this almost 12 years.

Our 12th birthday is in May

By the way, in May, we celebrate our 12th birthday here at The Forex Trading Coach. Not too many others can say that. We’re really proud of that. We’ve gone over 3000 clients now in 93 countries around the world. It’s worked over all those years. It just works. We love what we’re doing. We love helping people. We love seeing the success of our clients. If you want to join us, you know where we are.

This is Andrew Mitchem here at The Forex Trading Coach. I’ll see this time next week. Bye for now.

Episode Title: #403: How to Profit as a New Trader with a Small Account

The 30 Minute Trader Trip

Watch how Andrew made a +12.79% gain on a live account during 4 weeks while trading for just 10-30 minutes a day while on holiday in the UK and France.

CLICK HERE TO ACCESS THE VIDEOS >>

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1 Comment

tom on March 18, 2021 at 6:39 am
Afternoon Andrew,
Following your podcast methodically! Can you go into how you define Price Action?
You mention its importance a lot, and how to focus on ‘the right of the chart’ however from scoping around it looks like theres a lot of interpretations of what Price Action actually is….