Not everyone starts trading with a multi-million dollar account.
I remember a time when I could barely rub two quarters together…
And I sank a lot of money into my education before I turned it all around.
During those 8 long years, I learned a thing or two about how to grow a small account.
You ask most ‘gurus’ and they offer up the same lame answer… “Wait for the best setups.”
It’s just pure nonsense!
Allow me to throw back the curtains and shed some light on this topic.
Growing a small account isn’t some special talent reserved for a select few.
In fact, I’m going to reveal three new ways to grow a small account…
Concepts you can employ right now.
And it all starts with a revolutionary idea…start with two small accounts!
You’re probably wondering if I’ve lost my mind.
We’re talking about small accounts. There’s probably a good reason you’ve only got one account.
But hear me out before you tune me out.
I’m NOT talking about adding any more skin in the game.
Instead, I advocate splitting up your current (or proposed) account into two equal ones.
Let me explain why.
Successful trading generally requires multiple trades to make a profit on average.
For most of us, we live in a world of probabilities. Any single trade works out a percentage of the time.
To give you an idea, my best months win about 75% of my swing trades. Usually, I’m somewhere between 50%-60%.
How do I make my money?
Simple. I win more than I lose on average.
If I win $2 for every $1 I lose, as long as I win 2/3rds of the time, I break even.
Starting with a new account means you can’t always bet 5% or less of your account for every trade.
Unfortunately, it makes it more likely for you to blow up an account than if you start with more money.
However, by splitting your account into two, it takes some of the pressure off.
If you blow up one account, no problem, there’s one right behind it.
Heck, I can’t tell you how many I destroyed before it all worked out. Don’t despair. You’re in good company.
Focus on making the right decisions. If it works out, great. If not, you’ve still got another shot.
Take small wins and pay yourself (a tiny amount)
What I’m about to tell you goes against everything you’ve heard about trading a small account.
So, here goes…
When you turn a profit, take a small amount out and pay yourself.
If you have a $250 account and you make $20, take $5 and get yourself an ice cream or some other small luxury.
I’m not talking about savaging your account to fly to Cabo.
But if you don’t enjoy trading, what’s the point of doing it?
Humans…really any animals respond to reward way more than punishment.
And if $5 is going to break your account, chances are you weren’t going to make it in the first place.
For the most part, trading is a lonely business.
Yes, there are groups like my LottoX that pulls folks together for live training. And we certainly lift one another up to become better traders.
But in between, there’s only one way to do it.
You need to be your own cheerleader!
Yeah, it’s tough to believe in yourself.
So, let the P&L give you a pick me up every once in a while.
Even if you’re down overall, find a way to celebrate when you get it right.
Stick with the strategy you feel comfortable with
Trading is 90% mental. The other 10%…mental!
Try a strategy that you don’t feel good about and it’s going to be a rough ride to making that small account grow.
Even though I advocate for my TPS strategy, I can tell you this.
Plenty of successful traders exist with completely different strategies.
A lot of the time, the only thing that separates a losing strategy from a winning one is trade selection and risk management.
Working a small account is enough pressure as it is.
You need to be comfortable with the strategy.
Sometimes that means using one you know. Other times it may be someone else’s.
Here’s the thing…you don’t need to be 100% sure it will work. Just being comfortable is enough to start.
And look, if you want a way to get a leg up from the get-go, then join me in LottoX.
There you’ll get to see how I evaluate and trade the markets first hand.