Understand the Markets First
Today I want to give a small thought to all traders out there that can afford to open big trading accounts right away, but yet they even do not understand the markets and do not know how to trade with consistency at all. Many traders believe they have poor trading results just because they have “small” trading accounts like few hundreds or thousands on them. Truth to be told is that your trading success does not come with the numbers, and amount of money on your trading account.
Many traders would be saying things like: “Oh, if I would have ten thousand on my trading account I would be a much better trader.” or “My trading account is kind of small, so I will trade very aggressively now just to grow my account quick first, and then I can focus on smaller risk.”.
Those kind of decisions can be very dangerous for your trading capital and most importantly for your trading mindset. If you decide (for example) to trade very aggresively at the beginning just because your trading account is “small”, you will not give yourself a time to build proper, healthy trading habits and skills, especially if you break all your trading rules of your strategy (even if you have one!) and all risk management rules by trading aggressviely just to try to grow your account quickly.
Trading Success and Your Trading Account
When I started trading the fx market +8 years ago I made this mistake – I put five thousands on my live trading account right away, even tho I did not develop my trading skills, habits. My only goal was monetary goal on how much money I want to make. This was big mistake as I did not focus on my trading process and routine, but only on money. It looks my ego was big and I did not accept the fact that without planning my trading for the next couple of years at least I would not be able to succeed.
After months of not getting results back then (due my bad trading skills, process and no discipline), I saw “success does not comes with the numbers as how big your trading account is“. I decided to continue trading and building my trading experiences and skills on much smaller trading account and try to forget about money at all.
You must understand – before you even try to make money trading forex (or any other market), you have to first invest in YOURSELF. Investment in yourself is your best “weapon”, because once you build correct trading skills, healthy habits and develop the correct trading mindset you will be able to slowly move from “losing money”, to slowly being “break-even” trader, and to slowly winning, and becoming a consistently profitable trader on the long-term.
What I suggest is that only after you have proved to yourself that you are able to follow your trading plan on every trade you take (and you achieved at least a few months of consistent profitability on your trading account), only then you can add more trading capital to your trading account (to trade bigger trading position, lots on every trade).
Trading Skills, Habits and Process before Money
By following this simple rule you will become a good trader and develop as a trader. If you do not have right trading skills and mindset, and you can not grow your (lets say) $1500 dollar account, how can you expect to be successful trading $100k or $1M trading account?
Please be honest with yourself.
Check your trading journal and see if you have followed your trading plan with consistency, patience and discipline. What are your strenghts? What are your weaknesses you must fix, in order to become a better trader?
Forget about your money on your trading account, and understand consistency does not come with how much money you have on your trading account. Someone with $1000 trading account can be more consistent,successful and better trader than someone with a few $100Ks on it.
If you have problems right now with consistentcy in your trading (or you think too much about your trading account money) try to hide the number figures on your trading platform, continue trade with smaller trading account or position size.
Your personal goal should be to first develop as a trader, and trade smaller trading account the same way as you would trade with millions.
Focus on your trading success by following a proven trading plan rules (process) that gave you best trading results so far, and follow it on each trade you take. If you slowly grew your trading account over the period of few months, you have now the right and prove that you can add more capital to your account to trade with bigger lot positions (do not forget your risk percentage should be always the same, max 1-2% risk per trade). Only this way you can become a really good trader on the long-term!