How To Grow A Small Stock Trading Account To A Big Trading Account $5k-$25k

How To Grow A Small Stock Trading Account To A Big Trading Account $5k-$25k

How To Grow A Small Stock Trading Account To A Big Trading Account $5k-$25k

 

Everybody tends to start small when it comes to trading accounts. However, it doesn’t has to stay like this forever as you can transition from a small trading account to a big one by following a few things and keeping a few things in mind.

 

Trading is not easy. In fact, it is one of the hardest things you might ever come across. Starting small is not the end of the world but it is something that you cannot solely rely on. You cannot simply leave your day job and start trading with a small account because it will not be enough. This is where a big trading account comes in and the discussion as to how to grow a small trading account into a big one.

Your Risk Should Be Proportional To The Size Of Your Account

 

First things first, the key thing in trading accounts is the risk and how to proportionally handle it against your account size. If you have a small account worth $5000, you shouldn't trade it like you are trading a big, $50,000 account. It is common knowledge that with a $50,000 account, you will be risking $500-$1000 and so with a $5,000 account, you should risk not more than $50-$100 per trade. When you have a small account, you are not trying to hit big home runs. So refine your strategy and develop your edge.

 

Be Patient With Increasing Your Position Size

 

When we are talking about a trading account, it is important to realize that you should be patient while you increase the position size at the same time. Increasing your position size comes when you are trying to find some consistency or when you have found consistency. If things are smooth for a few weeks, start increasing it. Bigger jumps are never recommended with smaller accounts and it is advisable to take things slow. Don’t jump from a $100 risk to $500 risk. Rather, increase your size slowly. If you were risking $100 first, choose $150 instead and take it from there. Be disciplined in your trading and things will turn out for the better.

 

Be Strategic About Profit Goals. Don’t Set Goals Immediately.

 

Certain days, you will have better trading opportunities and on other days, they will be worse. You cannot control these trading opportunities daily. Some days you might not even have any. Therefore, it is better to not keep profit goals daily because that way, you will be more inclined to lose money. Try to focus on the monthly or weekly profits. It is the best way to go about small accounts. Any big jumps, leaps or expectations are highly recommended against.

Stop Comparing What You Earn

 

One big mistake small account owners make is that they start to compare what they earn with others. It is recommended to not compare your gains to others because you don’t know their real story. Also, there are so many scams out there that promise people bigger gains and other things while these things are far from truth. If you see anyone posting large gains every day in a small account, try to keep a grip on what you are doing and handle things maturely. There is no comparison in trading because you do not know the other person’s story. Focus on your self and try to build your own skill set.

Be Realistic About Your Expectations

 

If you have a small trading account and want to turn it into a bigger one, don’t expect things to change over night. That doesn’t happen in the world of trading. Such things require a lot of patience and time. This transition from small to big might take some time so don’t expect to see the difference in just 6 months. If you set unrealistic expectations, you are more likely to make mistakes and moves that go highly against your favor and slow down the process of going from a small account to a bigger one. So for instance, if you have had greens for a few weeks, you can start wiring your money in your bank account and then increase the position size in order to speed up the process. This whole trading thing is not a marathon or a race. It requires time, careful thought and a lot of dedication and consistency.

Always Have A Backup Source Of Income

 

Honestly, as I said in the start of this article, never truly and fully rely on a trading account if it is small. If you are operating a small trading account, you have to have another source of income. If you have another source of income, you will be more patient in your trades and you will not be forced to make trades that are forceful and unnecessary. If you have a small account, know that you cannot simply make a living out of it. Always have a backup as that way, things will come easier.

 

All is not lost with a small trading account as having a small account has its own set of benefits.

 

A small trading account has less risk involved and you can build it as you want. It gives you greater command, greater authority and helps you learn a lot in the process as well. You can master the art of trading with a small trading account before you leap into a big one and learn a lot in the process as well. Trades are all about making the right moves and with a small trading account, you will know when to make a move and when to step back. Transitioning from a small trading account to a bigger one offers a lot of benefits as well but once you understand that a small trading account is not a curse, you will enjoy the transition into a bigger one more.

 

It is not an impossible feat to change your small trading account into a big one but it is a process that takes time and effort. But with the right amount of patience and by keeping the tips above in mind, there is no reason to doubt why you won’t be able to grow your account into a bigger one.