Making big profits with a small trading account

Trading is all about making a consistent profit.  The majority of the retail traders are failing to make money in the Forex market due to various reason. Some of them don’t even know the proper way to do the market analysis. In order to become a successful trader, you have to learn a lot about the trading industry. Most importantly you have to train your mind to embrace losing orders on a regular basis. Things might sound overly complex but if you stick to the basic rules of investment it won’t take much time to develop your skill as a professional currency trader.

So how do the experienced traders make a huge profit? Do they have a huge amount of trading capital? To be honest there is no exact answer to this question. However, if you want to make a huge profit with a small investment, you can do so by using a high leverage trading account. The experienced traders prefer brokers like Saxo since they always give a quality trading environment to the retail traders. Let’s learn some simple technique by which you can easily maximize your profit factors by using the market leverage.

Trade with a tight stop loss

In order to trade the market with a big lot, you must trade with a tight stop loss. The novice traders often use a big lot and set a big stop loss. At times such strategy might work but considering the long term consequences they are just ruining their investment. In order to execute the trade with a precise stop loss, you must learn price action trading strategy. Try to find a high-quality price action confirmation signal at the key support and resistance level. Analyze the overall market trend so that you don’t end up by executing trades against the market.

Trade with low-risk exposure

The experienced traders in the UK exchange traded funds community knows the perfect way to scale their lot size based on their potential stops. For instance, they trade in big volume when the potential stop is tight. Though you will be trading with a small account, you can’t risk more than 5% of your account balance in any trade. Remember, no one can predict the price of a certain asset with 100% accuracy. Always be prepared to lose trades so that you don’t become frustrated.

Use the trailing stop loss features

The best way to maximize your profit factors in the Forex market is to use the trailing stop loss features. Once the trade moves in your favor, move the stop loss to the breakeven point. Based on the minor support and resistance level you need to trail your stop so that you can ride the market trend in the long run. The smart traders also analyze the fundamental data so that they can easily assess the strength of the market trend.

Trade the high impact news

Trading the high impact news is extremely risky. But if you trade the market with elite class brokers like Saxo you have great chances to make a profit by trading the high impact news. Once the news is released, execute the trade with a big lot in favor of the market movement. If you do the match properly chances are very high you will be able to make a huge profit within a short period of time. Always remember, you can’t risk more than 5% of your account balance in any trade.

By now you know the proper way to make a huge profit with a small investment. As a currency trader, you have to learn the proper way to analyze the market variables. Spend some time to create a perfect trading strategy so that you can easily execute a trade with high-risk reward ratio. If you are not sure about a certain trade, stay in the sideline but never execute any trade with confusion. Try to be a conservative trader as it will protect your trading capital.

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