Forex can be a very profitable adventure especially if you understand the basics and you are ready to do a target-based trading. If you are looking for a target based method on how to grow $10 Account in forex PDF, then few things are involved, and we are going to discuss these ‘few thing’ comprehensively on this article.
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How to Grow $10 Account in Forex
Let say you open a forex account and you have just $10 equity in the account, how do you grow it to like $1000 or more, that is where the target based trading comes in.
What is a target-based trading?
We all trade in a way that works for us. There is no right or wrong way to trade but there is a profitable way you can trade. Target based trading is one of the most profitable way to trade. Target based trading can be in form of:
- Price target: That is setting a Point of interest (POI) and Point of entry (POE) for all your trade. For example, you can say when price gets to a certain support level you will draw your POI, then the reaction at the POI will determine your POE.
- Time based target: This is where you answer questions like how long will you hold a trade, for how many pips, how many minutes/hours, etc.,
- Duration target: This is where you look at how long you can stay in the market in a day, will it be full time or just some few hours in a day etc.,
Developing a target-based method will assist you psychologically and help you manage your risk efficiently.
This is how to grow $10 Account in Forex
Choose the Right Broker
Before even thinking of growing a $10 account you need to choose a broker that will allow you to trade with as low as $10. Most brokers set their benchmark to $100. Personally, I use Deriv, and with Deriv you can trade with as low as $2. So you need to search for the right broker with the right leverage, great deposit and withdrawals options and a great track record of customer service.
Set Realistic Trading Goals
The problem with most struggling traders is that they don’t have trading goals, even if they do, their trading goals are not always realistic. Setting realistic trading goals will help you to stay in check and in control of your trading journey.
Let say, you open a trading diary and in the diary you have stuffs like:
- I am starting my trading journey with $10
- I will trade using Deriv Broker (put timeline for account opening)
- I need to start trading with Demo for at least 2 weeks to build confidence and strategy
- While trading with demo, I will study more on Price action, risk management and Smart Money Concept strategy
- When I start trading on my real account, I will target 10% profit and 5% loss on my account daily, once I reach any of them (either loss or profit) I will close for the day.
- I will review my trade at the close of every trading day to review my progress and decide next step
You need to develop realistic goals that will help you grow in the forex market.
Focus on just one pair
Focus only on one pair or one market. I don’t know how to say this, but it is very important to look for one pair, study it and focus on it. Focusing on one pair will enable you to understand the pair over time and be able to analyze it, trade it and make profit from it. Jumping from one pair to another can be a bit confusing. For me, I am a one pair trader, I always focus only one market, if there are no opportunities on that particular pairs in a particular, I will draw POI and rest until price get to my POI
Risk Management is very Important
I mentioned the 10% and 5% profit and loss rule during the goal setting stage. It is good to take your trading as an investment. After doing your trade analysis, set your take profit and stop loss point based on your set percentage and stick to it.
PLEASE if a trade hit your STOP LOSS, don’t do revenge trading.
Leverage the right way.
Your lot size matters, trying to overleverage to make quick profit can make you to lose your trading capital in a matter of seconds. If you are trading with a $10 equity, start with the least lot size, grow your profit steadily, you can increase your lot size as your equity grows (depending on your risk appetize) or allow it to remain at the same level.
Remember, no matter how small the profit is, consistency matters, so aim at building confidence and being consistent.
If you have any questions or comment, kindly share below:
Deriv offers complex derivatives, such as options and contracts for difference (“CFDs”). These products may not be suitable for all clients, and trading them puts you at risk. Please make sure that you understand the following risks before trading Deriv products: a) you may lose some or all of the money you invest in the trade, b) if your trade involves currency conversion, exchange rates will affect your profit and loss. You should never trade with borrowed money or with money that you cannot afford to lose