Forex How To Apply Money Management to a Small Account?

[moonchild]

A small account is an account that has less than $5000 trading capital in it, most of forex traders started out with such accounts and blow some more before reaching profitability or quitting altogether, but nevertheless, a small account will help you learn because you are not afraid of losing it or blowing your capital.

To make profits in a small account you should always use a small lot size that is 0.01 and only increase if you're confident of your skills and ability to trade.

Trade less frequently, you the saying that goes less is more right? Well, it's even truer in trading, stick to one instrument and only take one or two trades a day and have a target, quit trading for the day when you hit your target.

By following these rules you'll be able to preserve your account.

 

[FinTrader]

It seems to me that it is better to study on a smaller deposit. Many brokers even have cent accounts, which you really wouldn’t mind losing while you’re still new to trading. Here it will be important to create your own trading strategy and make sure that it works well for at least half a year. Here you can also learn money management tricks. Then you can open a real account for several thousand dollars and worry less and not be afraid that it will be lost.