What is the best Forex strategy for small accounts? This was one of the questions that bothers me when I started trading Forex.
First, I wanted to understand if I can trade Forex with as little as $10 and still make good profit. Secondly, I was struggling with my job and I needed something that can help me make more money.
Learn the Secret of Forex Trading, Click here to download a free e-book now
I was introduced into Forex by a colleague and the experience from the first week was not too great. I lose my capital twice, change my broker twice and lose interest in the whole Forex stuff after two months.
To me, what was the point of trading Forex when I was always losing my capital.So after two weeks off the market, I decided to try it again, this time with just $50 equity on the Crash and Boom Indices. I lose $40 on my first trade, then I paused to research on some Forex Strategy for small accounts.
There was so many material on Forex strategy, just one search for “Best Forex Strategy for Small Accounts” on search engine brought out hundreds of articles with different ideas and perspectives and I was so confused.
I got Ideas ranging from:
- Forex Scalping Strategy
- Trend Trading Strategy
- Price Action Trading
- Swing Trading
- Range Trading Strategy to
- Position Trading
I tried all this strategy on my Demo, then I discover a very simple truth, there is no Forex strategy that works 100%. I made some good progress on the price action trading and I was mostly trading with sell limit and buy limit.
If you are familiar with the Crash and Boom Market, you will understand how the market works. For instance on Crash, I set up some sets of rules that helps me spot the top resistance point on the market and place sell limit with a $1 pip difference for both Take Profit and Stop loss and I got 93% success rate on Crash 500, and 85% success rate on C1000.
I did the same for the Boom market by setting some rules that will help me spot the support zone on the chart. The success rate was better in Boom 500 than Boom 1000.
The thing is this, If you are trading with a small account, decide on a strategy:
- I love recommending the price action trading strategy. If you are not familiar with it, read more by clicking here
- Study and understand Support and Resistance Zone.
- Always use stop loss and take profit point
- Trade from M5
Forex trading is not hard, it’s very easy and profitable when you know when to enter and exit the market.
Disclaimer
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.