Actually, not everyone can deal with a large account while starting to trade. In reality, if you’re a beginner, it’s definitely better not to gamble a huge amount of money at once. At the same time, small-scale accounts require a special approach. Though there isn’t a single, mysterious strategy to boost your trading account to the stars, there are various areas worth paying consideration to. All of them make your account development much faster and much more proficient.
So let’s take a look at where you can take action to make your forex account grow faster!
The first and foremost one that you need to consider to grow your account faster and efficiently is- RR(Risk-to-Reward Ratio).
Firstly, Let’s know- ‘What is RR?’
In short, your RR is the ratio between your target and your stop loss. A suggestion is for you is- ‘keep a minimum RR of 1.5.’
In case a potential setup gives you a 1.2 or 1.3 RR at that point, it is not qualified for a trade entry. Straightforward as that.
Your minimum may vary. Yet, I advise you to go no lower than 1.5RR.
A question can arise in your mind-’Why should I? Well, if you use 1 as a minimum RR that means you have to be above the 50 percent win rate to be a profitable trader.
On the other hand, if you go with 1.5RR minimum, you need to have a win rate of over 40% to be profitable in your way.
You know what? In the FOREX exchange, that extra 10% is a huge deal for you. However, let’s not make you afraid!
You only have to win two trades every 3 losses to cover the lost trades. It helps to chase losses in an area in which many traders collapse. You are under less pressure to “win at all costs,” and so you can compete on a higher scale.
One more thing, efficient trade means a profitable trader, not a winning trader. Trading is about securing your capital with a minimum RR that you stick to, you will find your account growing much faster than if you did not.
The Account Funding
With respect to foreign trade the amount of capital with which you can deal, your income and development will be significantly impacted. The larger your capital, the greater your return per trade, because your return is one percent of the size of your account. This is how the wealthy can seem effortlessly becoming wealthier while the poor struggle to break through the ceiling. So much more money generates more wealth.
Let’s pretend, your account is 1000 dollars in size. You get $50 per win with a return of five percent per trade. Your 5% return jumps up to $5,000 with a $100,000 loan.
So you’ll have a lot easier time to expand your account swiftly and efficiently if you can add funding. Nevertheless, there are certain drawbacks.
You must begin with SMALL when trading live if you’re a new trader. When you start trading all your savings at once, the psychological impact will be too large. And, YES, that wouldn’t be a wise decision at all.
Instead, we suggest that you should add capital every month to your account. It can be very small, but with time you can see greater returns and grow faster.
Consider a retirement plan. Each month you add a small amount to your pension, and it gets bigger at a time being. You can do the same thing with your Live Forex account!
Using Multiple Time Frame
You may be shocked to see at first glance “use multiple time frames” in this list, but in fact, it is absolutely crucial. Look, we all want to trade, what we want, which timescales we are happy with. We all have our expectations. As price action traders, however, our FLEXIBILITY is one of our greatest strengths. You can trade in multiple time frames if you are interested in rapidly expanding your account. And, literally, take your time–you need to learn to crawl and walk before you can run if you are new to the trade.
Why I encourage you to do this is simply because you can find more trade setups. Think about that–if you’ve only traded a one-time frame on a pair, you’ll only be looking at a fraction of what price action is showing you.
Training in large and small trades gives you so many incentives that you need to start filtering great trades out of good trades. You should at least start testing other time frames even if you are unsure. You open up more trade opportunities if you do the same. Take an example of this present weak market situation!
For large time-frames, so many pairs switch sideways. You will go to the lower periods and find some exciting price action instead of saying “No trades today. oh well.” Okay, hold on, and just look at the following example!
I remember that I asked you to look for more opportunities for trading. But, when I tell traders to look for more deals, there are risks and that is about overtrading. Not every possible trade you find should be taken by you. Not least because they need maximum exposure to their accounts, but because some are simply better than others.
You will stop the growth of your account if you overtrade. We want fast growth, yes, but we also need efficient growth. Yes, I repeat, you need efficient growth! When left unchecked, unnecessary trading reduces effectiveness considerably. So the first two points are offensive in comparison to our offensive and defensive strategy and this is your defense.
This is synonymous with Missing Out fear (FOMO) and trust me, many traders are struggling against it.
You should keep in mind that- Not all trade will net you a victory. From the beginning, what you have to do is- Analyze the entire ‘Price Action’. And, it may give you the chance to pick the best trade from a large number of trades.
Stick To Your Consistency
The last important thing to consider is- ‘Consistency’. Consistency is crucial to your account growth. As many traders give up mentally, they start to check their charts less and less. The growth of the account is not due to large successes and massive leaps. It’s from the little choices every day. This builds up to a consistent level of progress and is less likely to result in a major reverse effect. Although reviewing your charts once a day is as small as keeping them up to date for big pairs, do it.
Growth is followed by time spent on your charts. You don’t need to spend a bunch of time every day! Nevertheless, continuous development is the fact of what matters. This glue helps you to expand your account progress while you stay aware and responsive to the current market.