Protecting your small trading account like an elite trader

People often start their trading career with a very small trading account. The fact that they are trading with a small amount of money doesn’t mean the risk factors are very low. They need to be extremely cautious with their actions since a small mistake can cause them to lose a big sum of money. If you want to survive in the retail trading business with a small account, we strongly suggest that you learn to trade the market like a pro trader.

Protecting your small trading account like an elite trader is not a tough task. You just need to follow some basic rules and take your trades in a structured way. Once you become good at analyzing the key details of the market and trade with discipline, you will no longer feel that a small account is a barrier.

Learn to trade properly

Before you start to trade with real money, you must develop a strong set of skills. Without having a strong knowledge of the market, no one can find reliable trade signals with a high level of precision. The novice traders often think they know every bit of detail about the market and they can easily change their life. Before you come to such a conclusion, you should be using the demo trading account and test your skills. If you manage to make a regular profit in the demo trading account, you may start trading the market with real money. 

Learn to manage your risk profile

Being a new trader, you should be extremely careful about the risk factors in the trading profession. No matter how good you become at trading, the maximum risk that you should be taken per trade should not exceed 2% of your account balance. Find more info about the risk management policy and learn to trade in a safe trading environment. Once you maintain the rules of risk management technique, you will no longer feel that you have a small capital to protect. Instead of thinking about the numbers, think about percentages when it comes to risk factors. This should help you to think rationally and it will improve your account safety.

Learn advanced trading techniques

You must learn to take the trades in an advanced way and only then you can succeed as a retail trader. Never expect that you will become the top trader in the bond trading industry without knowing the technical and fundamental details of the market. To be good at trading, you must follow some basic rules and take your trades in a standard way. Once you become good at that, you will become much more confident with your actions and thus you will be earning more money even at the complex state of the market. Try to learn about the price action trading method and stick to the higher time frame during the trade execution process.

Trade in the higher time frame

To protect your small trading account, you should be trading the market in a higher time frame. As you learn to deal with the higher time frame data, you will find more reliable trade signals. Most importantly the risk to reward ratio factors in the trades will be much better. Some novice traders often trade the market in the lower time frame and lose a big portion of their trading capital. They soon become frustrated with their actions and quit their career. To eliminate such a problem, you should forget the fact, you can scalp the market. Try to learn about the position trading method as it will give you a better risk to reward ratio in each trade.

Smart traders never lose hope in their actions. You must act like a smart trader and stick to the core system of your trading strategy. Trade the market with confidence and accept few losing trades with a big heart.