Learning to deal with financial instruments is not an easy task. It requires hard work and patience to develop your skills and trade the real market. Many people in Singapore often say they know the best way to place a trade but in reality, they are just relying on the emotions. Emotions have nothing to do with your profit factors. If you can trade this market with logic, you can earn money by trading the market with a small trading account. Today, we are going to discuss five amazing tips that can help you to trade a small account like a pro.
Lower down the leverage
To trade the market you must learn to deal with a low leverage account. Taking too much risk and trying to earn more money is a very big mistake. A higher leverage trading account is specially designed for the pro traders who have extensive skills with the retail trading industry. Those who have less than 2 years of trading experience, should never try to trade the market with a high leverage account. Follow this technique if you want to keep your small account safe.
Trade with the trend
You should learn the different stages of the market trend to keep your small account safe. If you trade with high risk and try to earn more money to push yourself to the next stage, you will be just using an aggressive trading method. Using such a method to trade the lower time frame is a very big mistake. Trading Forex is more about managing risk exposure efficiently. If you keep your fund safe, you should follow the conservative style of trading. Learn about the trend trading method and you will realize how easily the pro traders make money in this industry.
Use the news factors
When you trade with a small account, you must be careful about the news factors. Taking too much risk and trying to earn more money by utilizing the market a suicide mission. Instead of making things overly complicated, you should think about the simple approach at trading. Focus on the bigger picture of the market so that you can earn a huge amount of money in the long run. Though things might be a bit hard to deal with the major news, there is an easy solution. Avoid trading the major news to keep your fund safe. Try to execute the orders when the market movement is more stable.
Accept small loses
You should accept small losses regularly. Though you will be extremely careful about the trade execution process, still you can’t avoid losing trades. However, there is a small twist to this process. Instead of using the traditional approach, you can start using the reliable price action confirmation signals to lower down the risk at trading. Though it can be a challenging task, still you can master this skill within a very short period. If required, use a demo account and try trading the market with the price action confirmations signals. If you feel comfortable with your trading approach, it won’t take much time to develop your skills.
Use advance risk management policy
By using the traditional risk management policy, you can’t make big profits from this market. At times, you can increase the risk exposure to a certain extent to earn more money. Though you might think this is a very aggressive approach, in reality, it is a very rational step. But never risk more than 5% of your account balance in any trade. Avoid placing high-risk trades before high impact news. Learn to play safe if you intend to protect your trading capital. Never push yourself to the extreme limits to earn more. Be happy with your trading results.