How to Grow a Small Forex Account

so you're new into day trading and you have a small amount of money and you want to grow that as quickly as possible not everybody has ten thousand dollars to open up their first forex account and like trade you know the proper way so in this video i'm going to teach you how to grow a small forex account in a quick and efficient way [Music] welcome back to the channel everybody my name is artie and this is the moving average a show where we discuss everything day trading to keep you profitable on a consistent basis so most day traders when they're starting out do not have ten thousand dollars to open up a brokerage account and start trading the markets if they do and they're new nine times out of ten they're gonna blow that account and never look at forex again i don't think you can lose that amount of money and then come back to it again with the same amount unless your mental game is really really strong a lot of traders have a tendency to revenge trade like they lost their money so they're gonna try to win their money back no no no no that's not the way to think about it you lost that money that money is no longer yours you need to start over take the l and the lesson and move on from it before we get into this video what i'm gonna discuss is extremely reckless and against every day trading rule so if you are new and unfamiliar with risk management please watch this risk management video first it is my story of how i lost a lot of money in the forex markets i am not suggesting everybody do this this is the disclaimer do not do this this is not financial advice this is just a strategy that somebody could play with not like their main focus but just a strategy that they could play with on a demo account to see if they can quickly grow a forex account and if you are good enough and you have the experience and you have the time put in in the charts and you know what these prices do at certain times of day you could actually eventually do this on a live account but it is completely at your own discretion this is extremely risky trading and i really i can't stress this enough you probably shouldn't do this but i'm going to show you how to do it anyway okay without any further ado let's jump into trading view and take a look at how this works so in any forex market this is gbp jpy right now you see you know the ebb and flow of the market you see spikes you see retracements you see all of the things this is on a one minute time frame there's a lot of noise and movement on a one minute time frame and you also have these huge spikes and drops that happen randomly these are usually news events but you can't really anticipate how much and how quick it's gonna happen i mean just for example this one one minute candle was 70 pips and it happened in 60 seconds so why am i showing you this i want to show you that depending on the currency pair these moves are enough to get 20 pips so let's draw out on this chart what 20 pips looks like it's that big this amount of movement is 20 pips so i'm gonna draw a box that's essentially that long okay this is going to be our reference point your goal is to get 20 pips out of the market you could see you got it here you got it here you got it here you got it here like it it's quite consistent to be able to get 20 pips out of the market if you know where to enter and what to look for this is a weird thing that i found on the internet it is called the 20 pip challenge stick with me on this this is actually in my mind it's extremely smart because imagine if you had a ten thousand dollar forex account and the standard way of trading is risking one to two percent per trade so you're risking 100 to 200 of your money per trade in hopes that that trade will work out and you will win and then you'll grow your account slowly over time essentially with this you can start off your forex account with 20 20 euros 20 pounds whatever 20 of the big currents each trade you're trying to get 20 pips if you get that 20 pips at a specific lot size listed on this chart trying to increase your account by thirty percent per trade so you start off with twenty dollars you want thirty percent growth so that means your profit goal on that trade is six dollars and the lot size for twenty pips is point zero three you get that six dollars you add it to your main account and you try to get thirty percent of the next one the next trade profit goal is eight dollars for 20 pips and so on and so forth i'm going to put this chart in my discord group linked down below if you would like to download this or have access to it then you can adjust the numbers with whatever you want to do but essentially this is the power of compounding so you're gaining 30 on your total account balance so 20 30 you know your new account balance 30 and so on and so forth these first few numbers may not seem dramatic at all like you're like oh cool i'm gonna get six dollars it's not that big of a deal but as you keep increasing your lot size trying to get the exact same 20 pips you can see as your account grows this number gets dramatically bigger by the time you're on trade 15 to 17 you're looking at two to three hundred dollars per trade that you're getting one trade three hundred dollars then once you get to the higher rankings this is where it gets absurd level 22 you're getting 1 400 per trade level 28 you're getting 7 000 in one trade so this whole thing is taking 20 in 30 successful trades like they have to be successful trades they have to be winning trades after your 30th trade you will have an ending balance of 52 404 now why do i say this is reckless because the standard way of looking at trading is risking one to two percent you're risking 30 percent per trade so you can see here i have these numbers adjusted this is your profit goal but this is where you want to limit your losses so if you get to this point you close the position and you go back one level so say you're on level seven on this and then you do a trade and it fails you only lose 22 dollars bringing you back to level six what i like to do is once you've completed a trade mark it in green you know i have a column here for if it's completed or not or how many times you've done it and then notes every single trade you do you should be keeping a trading journal why you got in on that trade what time frame were you looking at what indicators were you using to let you know that the trade was going to go in that direction this is going to help you determine why you're losing trades and why you're winning trades so you can focus on the things that are working and try not to do the things that are not working now this is complete like do not focus on this as your main source of income this is a side project that you could possibly test on a demo account so i did this like i have my main you know trading account and then i started doing this just for fun i got up to level 15 i was at 788 and i was like this is cool like you know i can do this i'll eventually get to the end and i swear at that point when i was like oh yeah this is easy i immediately kept losing trade after trade after trade after trade after trade and i got down to level eight now you might be saying to yourself that's crazy you lost six hundred dollars like that's so reckless yeah but my original risk is only twenty dollars so if you think about that in comparison to a 10 000 account where you're risking 100 to 200 per trade that risk is 10 times higher than what you're risking here so there is a micro and a macro way to look at this micro you're risking a lot like once you get to these higher levels and you lose three thousand two hundred and fifty six dollars on a trade that is huge and that is a micro huge loss like that's a gut punch if you wake up and you have minus three thousand two hundred dollars it's going to hurt but macro if you think about the big picture you're only risking ever this twenty dollars so even if you're here losing three thousand dollars or seven thousand dollars a trade you have to keep it in your mind that this is only twenty dollars this will keep like the bad psychology of trading that like really hinders a lot of traders out of the equation because you're not like this is basically demo money after a while because you know it's only twenty dollars so if you lose five thousand it's like losing a trade on a demo account it doesn't hurt it doesn't like gut you getting back onto trading view trying to get this 20 pips out of the market you're gonna have to have a really good strategy to do so as you guys know and by the name of the channel i like moving averages i think they are the best way to trade it shows you where you're seeing strength and resistance as well as seeing momentum like if you see this parabolic spike you know the momentum's to the upside so how to get these 20 pips out of each one of these moving average cross moves or rejection on the moving average what i suggest is you go watch this video right here this video right here is a strategy on my three line strike so basically you're waiting for three subsequent candles in a certain direction and then a big fat engulfing candle in the opposite direction that is going to be your entry point on every single trade with your stop loss above or below that big engulfing candle so if it was bearish like going down it would be just above it and if it was bullish it would be just below it so let me show you what this looks like it doesn't matter if it's five or seven or 12 consecutive you know candles in that direction the last three have to be the same color so we had a bullish candle a bullish candle a bullish candle and then we had this big fat engulfing bearish candle you get in on a short position your stop-loss is above that candle and you're targeting 20 pips so as you can see with this strategy you're not risking the full like like on my chart here like this risk dollars so if you're doing a 0.03 lot size your profit goal is six dollars you are not risking a large amount with that type of a stop loss because this is a sniper entry this is going to give you a really really good entry so even if say you're on level 9 and you lose a trade you're not going to go all the way back to level 8 you'll just lose a small percentage of that because your stop loss is super tight these are my sniper entry techniques so we've dragged this profit level down to 20 pips let's see if this thing played out and eventually it did let's see how long this took two hours and 44 minutes i'm telling you this strategy has to be my favorite it's the three line strike again it will be linked in the description so use that with this challenge and you can take twenty dollars and if you don't get too emotional you could bring it up to fifty two thousand dollars again this is not financial advice i am not a professional i'm a youtuber making videos on how to teach you how to trade educational purposes only try this on demo that's zero risk whatsoever and if it works and you do the whole challenge on demo then maybe consider trying it on live okay i'm done that's it like if you guys got some value out of this video make sure you're smashing that big fat thumbs up button down below my face if you have not already consider subscribing to the channel it really makes me feel good about myself and i will see you in the next video

Channel: The Moving Average

Views: 488,470

Rating: 4.917851 out of 5

Keywords: How to grow a small Forex account, small forex account, forex small account, forex for beginners, forex small account strategy, forex strategy, forex trading strategies, how to grow a small forex account, how to grow a small forex account fast, forex strategy for small accounts, how to trade forex

Id: xxrgGE7rgb8

Length: 12min 55sec (775 seconds)

Published: Tue Mar 23 2021