HOW TO BECOME A DAY TRADER WITH $100?
Remember the first day I even tucked away a small amount of about 100 USD and started day trading. I think right now, there must be many friends like me at the time, who are also studying Forex and about to deposit it. There are some people who deposit a lot, but do not say anything, but there are also people who deposit 100 USD, but are still hesitant to know if it is too much or too little, trading is profitable or not… Today, based on my experience, I will show you how to become a day trader with $100.
So today I'm going to be a little scattered about the $100 account. Perhaps it will be useful for traders who do not have much money or do not want to spend a lot of money to trade Forex, who are obviously not the richest forex traders.
For me, a $100 account has many advantages for day traders, especially for novice traders. Here is what I want to discuss about the USD 100 account.
What is money to you?
Money is something very powerful, do you agree with me that, sometimes, no, most of it governs our emotions, especially in this Forex market. Holes are afraid, many lapses are desperate. Profits are fun. Profit can be the cause of subjective, conceited minds.
The more money you have, the greater the degree of emotional well-being. So what about the $100 account? Of course it's not very much, but compared to the demo account that you previously traded, it has created a lot of "sublimated" emotions.
On the first day of starting the trade, EURUSD formed a pinball candle at the confluence of resistance/support/trend line, Fibonacci resistance, etc. Trader rated it as a setup on the A+ orders. There is no need to hesitate with our 100 USD account, we will enter the BUY order with the risk of 2% of the account i.e. $2. After 4 days of waiting, the price hit on take profit and ate 4% of the account i.e. 4 $. $4 is not much, but that money makes us happy, because for the first time trading has made money.
Is $4 enough?
This world is great when we have made 4% of accounts in only 4 days. Again, 4% of the account, not $4. This primitive thought was the beginning of a series of our future losses. I don't want to think about $4. Because 4 $is very small. But when we think of 4%, we think we're talented, we can earn 4%/4 days, so in 1 month, maybe 22%? Super profit!
A real and talented trader will look at the absolute numbers. $4 reflects more correctly than that 4%, because after all, we are only holding a $100 investment fund. If you hold more than that, $1,000, even $10,000, it is unlikely to earn 4% so. Remember, 4% is enough for you to trade with a USD 100 account.
Pay attention to capital management
Capital management, risk management and trading order management are always ignored, despised, even ostracized by new traders.
They are the keys to success, you don't need them, and so what is it to go into Forex?
If a trader has the right mind-set in the first place, they will utilize their first account to practice capital management as closely as possible. Firstly, that trader has a real-world approach to capital management and risk management. Secondly, due to good capital management, their accounts are optimized, less loss, if there is fire, it will burn longer than other normal traders. How to manage capital?
- Execute rule of 2% risk. $100 account, each order to lose up to $2. Of course not much, but remember $100 cannot get rich.
- Trading volume is 0.01 lot, so the maximum stop loss is only 20 pips only. Stop loss 20 pips is also ok for small time frames.
- There should be a clear Risk: Reward ratio to easily statistics the effectiveness of the method you are trading.
- Statistics win rate on the total number of orders.
- Regularly review old transactions to gain experience.
- After you have got some necessary data, read more of this article to measure the effectiveness of your method. Later you open a larger account, you can make a profit by that method.
So that’s what you have to keep in mind when you want to know how to become a day trading strategy user with $100.