Let me tell you a short story about when I just started trading the Forex market, after which I will explain the original idea behind trading smaller accounts.
In the early days, I started with a small account, and I thought it would be impossible to double my account unless I was over risking. My first account was blown up in a couple of weeks. I was so disappointed in the market and the strategy I used.
The Truth About My Beginner’s Mistakes
Be honest, is there anything worse than picking a winner only to see all the potential profit go down the drain because you stayed in a trade too long? Even worse, back then, I wasn’t aware that I should step away from the market and refocus my concentration on the trading plan.
Those were all beginners’ mistakes. I decided to completely resist the urge to trade instinctively without a clear plan. I stepped away and made a professional trading plan. My focus completely shifted on the price itself, and I was determined to never ever repeat those mistakes. I had demo traded for one year, absorbing all the knowledge and learning from my personal experience until I felt ready to trade on the live account again.
After I saw periods of regular success, I decided to share my knowledge on a popular website named “Forex Factory”. A few years later, my thread on Forex Factory website had become one of the most successful threads ever, and the rest is history.
The Original Idea: Summer Trading
In the story above, you might recognize yourselves, at least in some parts of it. But wait? You still don’t believe you might actually succeed?
During my webinar sessions, I have continuously been asked about the possibility of building up a small account. Many traders implied that it was impossible, especially if you trade with a margin. Being a trader myself, I have decided to begin a trading project named “Low to High build up”. I spoke to my colleague and business partner, Chris Svorcik, and we decided to work on a project together.
The original idea was to formulate a method which would allow us to trade with higher frequency during the summer period. Our main goal was to build up a small trading account and to prove that traders can succeed in the Forex market despite the omnipresent Forex myths.
Of course as the creator of the CAMMACD™ method (used for market analysis and swing trading during Session Recap webinars), I knew that success is in sight but to build up a smaller account requires higher risk too. This meant that, although the system has been very accurate, the risk was slightly above my usual threshold.
So the idea was born, and we started working on our new project.
As you can see, the end result was outstanding. We managed to squeeze a bit of profit from a small deposit of 1000 EUR. +80.26 % gain with only 33.40% of drawdown was made during 3 months of trading – July, August and September.
So this is proof that you can trade during summer months very successfully. The ecs.LIVE trading group is very active during summertime, and we hope that we can achieve a similar result with our signals. You can sign up, trade with us, and see if it works for you.
How To Build Up Small Account
Here are the tips for building up a smaller account:
- Use compounding
- Trade with a slightly higher risk (no more than 3 % per trade)
- Use CAMMACD or SWAT -profitable trading strategies
- Time focused on risk-management (money-management)
- An understanding of trading psychology
Regardless of the markets traded or the strategy deployed, execution speed has been critical to successfully trading this account. I have been mostly trading, while Chris has helped me manage other things like scanning for good setups and video recordings. Trading can be very enjoyable when you have an excellent trading buddy.
So we made a nice chunk of pips in stage one and proved that with careful trading practices, you can make money from a small funded account. However, the keyword here is “careful” – we treated the project with respect rather than as some get-rich scheme.
It is possible!
Cheers and trade safe,