5 Secrets to Grow Your Small Trading Account Fast

A lot of trading advice you see online is absolutely misleading. They tell you to use the Martingale strategy or use a 1:1000 leverage so you can make millions on a $100 account. Now cut all this out because I’m here to show you how to actually grow your small trading account fast. So here are five secrets to exponential profits:

1. Choose Good Brokers That Offer High Leverage

The biggest decision you can make in your trading journey is the broker that you choose to trade with. Choose the wrong broker, and you risk losing your hard-earned money. Choose the correct broker, and you’ll be able to trade with peace of mind. If you are trying to grow a small trading account, you’ll be able to grow it so much faster if you use higher leverage.

Higher leverage means that you’ll be risking more money to earn more money. For example, let’s say that you have $100 inside your trading account. If you use a 1:50 leverage, you will have a buying power of $5,000, allowing you to trade up to 0.05 lots, which is five micro lots. However, if you use a 1:500 leverage, you now have a higher buying power of $50,000, allowing you to trade up to 0.5 lots, which is five mini lots. This means that you can risk more money to earn 10 times more money just because you picked a higher leverage.

Now, bear in mind that leverage is a double-edged sword. It can cause you to make a lot of money fast, but it can also cause you to lose a lot of money fast. Do I recommend you doing this? Hell no, because you will have a higher chance of blowing your account. But hey, I’m just here to share with you how I personally grew my small trading accounts. So if you do decide to use leverage, make sure you do not over-leverage and blow your account. Make sure you set proper risk parameters, practice proper risk management, and use leverage to your advantage.

Thousands of brokers have asked me to promote their broker on my YouTube channel, and one of them even offered to pay me $50,000 if I just made one video on them. I have never accepted any of these sponsorship offers because the last thing I want to do is jeopardize your hard-earned money. So don’t use a trading broker just because your favorite trading guru created it or promoted it.

There was this one time in 2021 where I deposited around $150 into a trading broker that a YouTuber recommended. I thought it was safe to use and it was regulated and licensed just because this YouTuber promoted it. I swear to God, they shut down and froze everybody’s funds the next month. They did not let anyone withdraw their money at all, so they pretty much ran away with my $150 that I earned from working an 8-hour shift as a restaurant waiter. I was pissed off and started emailing them, but nobody replied. This is exactly why it is so important for you to do proper research before deciding on what broker to use.

Choose a broker that is regulated, licensed, and safe to use. Choose one that offers low commissions and fees because they add up, especially if you are trading a small account. Choose one that offers responsive and knowledgeable customer support, and make sure that you evaluate the reputation of the broker by looking at the ratings and reviews left by other traders. Nowadays, I personally only use licensed brokers like Enda or IG because I no longer need an account with high leverage since I’m trading with larger capital right now. I’ll talk more about this probably towards the end of the video where I give my unfiltered advice to small account traders.

2. Only Take High Priority Trade Setups

I had made about $1,000 on a $250 account in just two days, even though back then I had no idea how lot sizes and risk management worked yet. I couldn’t believe that I had just made my monthly salary in just two days. That was the day that changed everything and made me decide to pursue trading full-time and take trading much more seriously.

During those two days, I was only focused on taking high probability trade setups. Now the question becomes, what defines a high priority trade setup?

That means that I will only take the trade if it passes this five-step test:

1. Establish a Trend Direction

If it’s an uptrend, I’m going to be entering for a buy, and if it’s a downtrend, I’m going to be entering for a sell.

2. Look for Trade Triggers

This could be in some form of confluences that tell me that I should enter the trade: be it candlestick patterns, chart patterns, key levels, Fibonacci, moving averages, whatever.

3. Set Stop Loss

If I’m entering for a sell, I’m going to be placing my stop loss above the swing high or above the key resistance level.

4. Take Profit

For Take Profit, I’m going to be taking profit at the next key level.

5. Risk to Reward Ratio

Only take trades that offer you a reward that is two times greater than your risk. If losing $50 means that you have reached your stop loss, your target profit should be at least $100 or more. When I’m trading, the minimum Risk to Reward Ratio is 1:2. If it’s less than that, I’m not going to be taking that trade.

Please, for God’s sake, do not try to trade every single setup that you see. If not, your account will suffer. Preserve your trading capital instead of wasting it on low probability trade setups that you know for a fact will not work. Resist the urge to trade on impulse and instead wait for the trading opportunities that align with your trading plan and strategy. When you truly develop patience, you’ll be able to make much more logical decisions and stop chasing short-term profits, which will compromise your long-term goals.

3. Increase Your Risk as Your Small Account Gets Bigger

The only way you can build mastery is through progressive overload. You will not get stronger or more muscular if you are just doing 12 reps of bicep curls using 4 kg dumbbells for one year straight. You have to slowly increase the reps or the weight in order to overload your muscles. This concept applies in trading as well.

You probably heard about the 1% rule, which states that you should only risk 1% of your trading account on any single trade. Now you must understand that risking 1% on a $100 account is different from risking 1% on a $100,000 account. If you risk 1% on your $100 account, you’re going to be making $2 profit, and that is not going to put food on the table.

The amount of money that you should be risking per trade depends on your risk tolerance and the quality of your trade setup. Determine your risk tolerance because it’s different for everyone. I am comfortable with risking $11,000 on a single trade, but you might not be okay with that. You might only be okay with risking $50 on each trade, and that is perfectly fine because everyone has a different risk appetite.

Before you enter a trade, you must determine your risk per trade and then choose a proper lot size. Always think about how much money you will lose if the trade does not go as planned. Are you comfortable with losing that amount of money? If not, use a smaller lot size. Since you are only taking high priority trade setups, you can risk up to 10% of your account on a single trade until your account eventually reaches $1,000. Then you’ll be risking 10% of $1,000, not 10% of $100, which is the initial amount that you started with. Always progressive overload so your account gets bigger and never, never ever risk too much money on a single trade, meaning that you should not risk 50% of your account on a high priority trade setup.

I need you to wake up and understand that you will not get rich by only risking $1 on each trade. You won’t make money if you are scared to lose money. Drill that into your brain.

4. Compound Your Account

You open up Instagram, and you see one of those finance motivational videos that say, “Oh, compounding is the eighth wonder of the world. If you invest $1,000 and you make an average return of 20% per year, you will end up with a whopping $230,000 at the end of 30 years.” So what, am I supposed to enjoy my dream life only when I’m old and gray? Why not get rich right now in your 20s and 30s where you still have the time and energy to go out there, enjoy your dream life, travel the world, and gain new experiences?

I don’t believe in the stock market compounding bullshit because it is absolutely impossible for you to make 20% per year consistently because of the changing market conditions. Rather than letting the market decide how you Compound Your Account, why not take control of your own compounding? You can do that by reinvesting your profits and also adding funds regularly into your account.

Add funds into your account regularly. The more money that you have inside your trading account, the more money you can risk on each trade, and in return, the more money you can earn. Now make no mistake, I am not telling you to deposit all your life savings into your trading account because I did that once, and it was an absolutely horrible life decision that I regret. You should only deposit your disposable income, the money that you can afford to lose because once you put that money into your trading account, you must automatically assume that it is gone forever.

Reinvest your profits. Choose short-term pain for long-term gain. Delay gratification. Instead of withdrawing your profits to go and buy your favorite pair of Nike sneakers, you should be reinvesting the profits back into the account so that it can compound exponentially. Now, the downside of compounding is that it will take a very, very long time for you to see any significant returns, and you have to be okay with that because it takes a lot of time for the compounding effect to work. That is why you need to be patient because good things take time.

5. Obsess Over the R Multiple Rather Than the Money

Most of us started trading because we wanted to get rich and make lots of money. But do you realize that when you obsess over your profits, you actually tend to lose more money? By focusing on your profits, you are slowly destroying your account without even realizing it.

For example, let’s say that you’re trading a small $500 account, and you enter a buy on EUR/USD and you made a small $30 profit from it. Now you start to think to yourself, “I spent so much time analyzing the charts just so that I can only make $30 while all these other traders out there are making thousands of dollars on one trade.” You might get lucky and flip the account to $1,000, but eventually, your beginner luck will run out. You blow your entire trading account and lose all your hard-earned money. If you are not disciplined, the market will humble you and put you in your place.

When you are trading a small account, of course, your profits and your losses will be smaller. You cannot be expecting to make thousands of dollars when you are trading a $50 account, bro. So instead of focusing on the money, obsess over the R multiple. I learned about this concept when I was reading the book “Super Trader” by Dr. Van K. Tharp, and it changed the way that I trade forever.

The R multiple is your gain or loss compared to the risk that you took on a trade. Here’s a few examples:

When you start to focus on your R multiple, you’ll be more objective and rational when analyzing your trading performance. You will no longer be affected by the huge loss or the small profits that you made on your trading account. And then that is when you can finally start to focus on the process rather than the outcome. When you focus on the right things, eventually money will come.

Honest and Unfiltered Advice for Small Account Traders

Understand that small accounts won’t allow you to last in this game. You’ll eventually blow your small account unless you are the lucky 0.001% that manage to grow it into six figures. If you want to trade for the long-term, small accounts just won’t do it right. You need at least 5K to 10K in order to trade full-time. That is why you should treat small accounts as a way to practice, make mistakes, and learn from your mistakes.

But if you want to trade full-time, I’m afraid to say this, but you need to hear it: small accounts will just not do it. If you are serious about trading and you want to treat trading as a business, you need to have a larger trading capital, and you can only get that by increasing your income. So find ways to earn more money, make more money, be it from your job or even trying a new side hustle.

However, if you have a small amount of money but you want to get access to a larger trading capital, what you can do is try to get funded accounts by prop firms like FTMO. But the harsh truth is that most small account traders can’t seem to pass the prop firm challenges because they are not used to trading a larger trading account and they are not used to the risk parameters required to pass the challenge. That is why you need to practice more on your demo account. Try to get a consistently profitable track record first before you even think about getting funded by prop firms. Because if you skip the process and immediately go out there and buy a prop firm challenge right now with no profitable track record, you are just wasting your time and your money.

Now, if you’re looking for a trading strategy to grow your small Forex account fast, check out this strategy that I have right here. Trust me, it works. And remember, you’re just one trade away.

Read More: Understanding Forex Trading: A Comprehensive Guide