Trading Forex Market with Less than $10,000

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The size of your investment plays a crucial role in your success. Without having a decent amount of money, it is very hard to secure your financial freedom. The majority of big players in Singapore trade with more than $50,000 in their accounts. They know the importance of a sizeable income in trading. Being a currency trader, you might not have enough savings to start with such a big amount of money. You might be taking the help of the leveraged account and losing too much money. But if you look at the experienced traders, you will learn to play it safe.

There are a few things you must consider in order to trade with small capital. If you follow the rules strictly, you can trade with less than $10,000 and manage a standard life.

Learn to play with the leverage

The first thing you should learn is the use of leverage. The majority of people don’t know how to trade with leverage. To them, leverage is just an added advantage that allows them to trade with high risk. But in reality, leverage is more like double edge sword. It can cost you your trading capital. If you have less than $10,000 in the account, your maximum leverage should not exceed 1:10. By trading with the low leverage account, you will be able to keep your emotions in check. Most importantly, it will help you to make some serious profit from this market.

Use the price action signal

Many traders at the Saxo bank group are trading the market with low capital. Due to the use of low leverage trading account, they are able to make some consistent profit without blowing up the trading account. So, how the professional traders do manages to trade with the small account. Well, they use the price action price. With the help of the candlestick pattern, they can make some good trades at the critical support and resistance level. Learning about the candlestick pattern is not that difficult as it seems. If you follow basic protocols, you will know the perfect way to manage the risk and trade like a king.

Trading with the trend

If you want to protect your trading capital, you must trade with the trend. Trading against the trend is the key reason for which people are blowing up the account. By developing the habit of trend trading method, the traders will get the unique chance to ride the trend. It will boost the profit to a great extent and allow you to make a big profit. Though rookies think trading tops and bottoms is the only way a trader can secure big profit, it is the most aggressive approach. No matter what, follow a trend trading system.

Risk 1% of the account balance

When you trade with a small capital, you have to trade with less than 1% of the account balance. Taking too much risk and trying to change your life is a big mistake. In fact, you can increase the size of the account by increasing the risk factors. In order to establish yourself as a professional trader, you have to learn to deal with managed risk. Think about the safety protocols and use a safe approach to boost the profit.

Use a professional trading method

You need to use a professional trading method in order to trade with small capital. Those who don’t use the professional trading method are losing money most of the time. Things might be hard at the initial stage, but if you stick to the core concepts of trading, you will learn to take the trade with low risk. Forget about the aggressive approach and create a simple method to improve your win rate. If necessary, get a professional course so that you don’t have to take high risks in a small trading account.

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