Growing a small account is possible, but it's definitely not easy. OctaFX has some useful tips to grow your account against all odds.
Deciding how much to invest in online trading is a problem that most beginner traders have. Some traders might start with $100 in their account, while others might invest more than $10,000 for their first trade.
There is no doubt that having a small account can be challenging. You might feel like a small fish in a vast ocean because the profits you make seem insignificant compared to the time and effort you put into your portfolio. However, this does not mean that you will be stuck in that phase forever.
In fact, starting small is actually a brilliant strategy in online trading. Since you're still a beginner, it's best not to take too much risk and focus on sharpening your trading skills instead. In this post, OctaFX shared some useful tips to grow your small account into a giant one.
The Truth About Having a Small Account
Before we proceed further, it's important to learn about the reality of having a small account. Starting small is great for beginners, but there are several things that need to be considered beforehand, such as:
- Trading options are limited. The more you trade with a winning strategy, the closer you'll get to your expected results. So this means, if you're not trading enough, it might be more difficult to reach your goal because your results will tend to be random.
- Trade expenses might be higher. Even if you have a winning strategy, your profit might still be insignificant because of slippage, commissions, and other fees. Not to mention that it's almost impossible to continuously get winning trades in the long term.
- It'll take longer to master trading. One of the most effective ways to improve trading skills is to make mistakes and learn from them. You will eventually understand what works and what doesn't. With a small account such as the one in OctaFX, it's harder to keep that level of engagement because you won't be able to trade that often.
Growing a small account is possible, but it certainly won't be easy because in some aspects, the odds are simply against you. Therefore, it's important to set your expectations right from the start. Do not expect to make a million dollars in the span of a few months. If anything, you should be prepared to lose your entire account.
Define Your Risk Management System
One of the most important aspects to grow your account is to define your risk management system. Without proper risk management, there's a high chance that you'll lose more than you anticipated. Remember that risk is something that you have full control over, so make sure that you manage it well to reduce your losses and increase your profits.
It's a great idea to define your risk management as soon as you start trading on a live account. Most traders only risk less than 2% of the size of their account per trade. If you're just starting, you might even want to consider risking 1% or less and move up from there.
Be Consistent
Trading with small money and low-risk tolerance is one way to keep your balance safe, but it also makes the profit smaller. Thus, it might take a while to actually "feel" that your account is growing. One thing to remember is that growing a small account like in OctaFX is all about consistency.
Being able to make small, yet consistent profits is more valuable than winning one big trade and losing the rest. The key is to take a small amount of risk, then find a way to win a lot more trades than you lose. While it may seem that you're not improving fast enough, it's the most effective way to lay out a solid foundation for your future trades.
Prioritize Skills Over Money
Even with a good strategy, you can still lose a lot of money. This is normal though. Even expert traders lose money sometimes, so don't be too sad if it happens to your trades as well. Instead of focusing on the monetary rewards, it's better to just accept the results and focus on enhancing your trading skills.
Take your time to learn about trading as much as possible. Try out different trading strategies, indicators, and trading tools to see which one works for you. It is also a great time to evaluate and improve your strategy. Remember that even losing trades can give you important data regarding your performance. You can also use the opportunity to focus on specific elements of your trade in order to see how they work individually. When you break them down like this, it's easier to figure out where your issues are.
Gain Live Trading Experience
Apart from skills, beginner traders also need to gain live trading experience. Demo trading might be useful, but it doesn't trigger the same range of emotions as trading on a live account. You can only feel raw emotions like fear and greed once you start risking real money. Such emotions can make you lose control over your trade and lead you to huge losses. But with enough experience, you'll be able to avoid emotional trading by making rational decisions based on your initial plan. Luckily, OctaFX provides these benefits.
Use Compound Interest
Once you start making money, it can be tempting to cash some out to pay your bills or buy new stuff. However, if you want to grow your account, you might want to resist withdrawing your money and start compounding interest. This means, you basically add your profits to the next trade. Over time, your account will definitely see exponential growth as opposed to the modest growth had you only relied on opening trades with the same position size every time, which would result in slow, linear growth.
Only Trade with High-Probability Setups
To minimize the risk further, you need to be picky with your trade. Meaning, you should only open a position if your analysis indicates that the setup has a high chance of winning. You need to make sure that all the criteria are met before opening a trade. You can analyze the situation and find the ideal setup by using a checklist of technical, fundamental, and market sentiment.
Do Not Overtrade
When trading on a small account, it's very easy to fall into the trap of overtrading. This refers to opening several trades with high leverage, which certainly can lead to high trading losses as well. Traders with a limited budget tend to amplify their account size with overleveraged positions in order to gain huge profits. Unfortunately, this is a direct path to disaster. You need to be responsible with your risks and understand how much you can afford to lose.
Stop Comparing Yourself to Others
Lastly, it's important to understand that comparing yourself to others will only bring out jealousy, impatience, and frustration. Sometimes it's a great idea to read successful trader stories just to see how they work, but don't let it destroy your confidence and make you feel inferior. There is a reason why copying other traders' strategy is not a great idea because in reality, everyone has a different goal to achieve. You need to find the style that you're most comfortable with in order to be successful.
Find a Suitable Broker
There are hundreds of good brokers out there, but not all of them are suitable for small traders. Aside from the basic aspects like safety and regulations, there are other factors that you need to consider, such as:
- Low Trading Fees
First things first, you need to pick an affordable broker. Choose brokers that offer low minimum deposits and tight spreads. Also, make sure that the broker is reliable as it is transparent so you won't have to worry about hidden fees that might be burdensome later. - Demo Accounts
Before you open a live trading account in OctaFX, it's a great idea to start with a demo account. Most brokers offer access to demo accounts for free, so it's very convenient for beginners. You can use demo accounts to practice your skills with virtual money, navigate the trading platform, and test your strategy. When you're ready, you can easily open a live trading account and start trading with real money. - User-friendly Trading Platform
Trading platforms can vary in quality from one broker to another, and some platforms can be way more complex than others. If you're new to online trading, it's highly recommended to choose brokers that offer trading platforms with simple designs. It will definitely save time and help you navigate the platform better. - Plenty of Learning Resources
One of the most important steps for beginners is to learn about the basics of trading. Many successful traders taught themselves by reading a bunch of strategies and applying them in their trades. Therefore, it would be helpful to prioritize brokers that offer free educational materials in various formats, like articles, webinars, and others.
Start to Grow a Small Account in OctaFX
OctaFX is a popular regulated broker that offers many interesting trading features with relatively low costs, making it suitable to grow small accounts for beginners. The broker offers MetaQuotes software, including MetaTrader 4 and MetaTrader 5 – both are well-known to be the top trading platform in the industry. The platforms are available via desktop as well as mobile. In addition, the broker has a web interface for copy trading that connects to its MetaTrader 4 platform.
Here's how to open a trading account at OctaFX:
- Visit OctaFX's official website and click "Open an Account" on the homepage.
- Fill in the registration form. Input your personal information and your password. For simpler steps, you can also use your Google or Facebook account to log in.
- Verify your email address.
- Choose your preferred trading platform and account type.
- Make your first deposit and verify your identity for withdrawal.
For more details and reviews on OctaFX, you can refer to the following table:
OctaFX is an international Forex broker that operates worldwide. The domain belongs to a group of companies called Octa Markets Incorporated which is registered with St. Vincent and Grenadines FSA. Currently, the company focuses on Asian, South African, and Australian markets. OctaFX.com does not accept European clients as this market is specifically appointed to OctaFX.eu (regulated by CySEC).
17 Comments
Oct 28 2022
The article highlights that trading platforms can vary in quality and complexity from one broker to another, and as a new online trader, it's advisable to brokers that offer trading platforms with simple designs. How important is it for beginners to choose trading platforms with user-friendly interfaces? Could you explain how opting for a platform with a simpler design can save time and enhance the overall trading experience by facilitating easier navigation? Additionally, are there any specific features or functionalities that beginners should look for in a trading platform to ensure a smooth learning curve and efficient trading execution?
May 31 2023
@Justin: Picking a trading platform that's user-friendly is crucial for beginners. It can make a huge difference in saving time and enhancing your overall trading experience.
When you opt for a platform with a simpler design, it means you won't have to waste precious moments trying to figure out how to navigate it. Instead, you can focus on what matters most – analyzing the market and executing trades.
Educational resources are another crucial aspect to look for in a trading platform as a beginner. Tutorials, guides, and demo accounts can provide invaluable support in understanding how to effectively use the platform, learning about different trading concepts, and practicing strategies without risking real money.
Efficient order execution is vital for beginners as well. You want a platform that offers fast trade execution, real-time market data, and reliable trade confirmations.
Risk management tools are also essential for beginners. Look for platforms that offer features like stop-loss orders and take-profit orders.
Lastly, consider a trading platform that provides mobile accessibility through a dedicated mobile app. Mobile trading allows you to stay connected to the markets and manage your trades even when you're on the move.
May 18 2023
When discussing the guide to growing a small trading account, OctaFX emphasizes the prioritization of skill development over focusing solely on money. According to OctaFX, trading involves both winning and losing at times.
Regarding trading skills, the article suggests exploring various tools and techniques to enhance trading proficiency, including those offered by OctaFX. However, the article doesn't specifically elaborate on the tools provided by OctaFX. Based on the context, it appears that improving technical analysis is emphasized. But what about fundamental analysis? Is it also considered important in the article?
May 24 2023
@Gordon: In my opinion, it's worth noting that a well-rounded trading approach often includes both technical and fundamental analysis. Fundamental analysis involves assessing economic indicators, news events, and other factors that can influence market movements. It provides insights into the underlying fundamentals of an asset and can help traders make informed decisions.
While the OctaFX article may focus more on technical analysis, it doesn't mean that fundamental analysis is disregarded. Traders are encouraged to explore and develop skills in both areas to gain a comprehensive understanding of the market and make well-informed trading decisions. By combining the insights gained from technical and fundamental analysis, traders can have a more holistic view of the market and potentially improve their trading strategies. Ultimately, having a well-rounded skill set in both technical and fundamental analysis can enhance a trader's ability to navigate the complexities of the financial markets.
Jun 1 2023
It said in the article, the trading platforms can vary in quality from one broker to another, and some platforms can be way more complex than others. If you're new to online trading, it's highly recommended to choose brokers that offer trading platforms with simple designs. It will definitely save time and help you navigate the platform better. With that in mind, how user-friendly and simple is cTrader as a trading platform? As a beginner in online trading, I've heard that some platforms can be complex. Can you provide insights into the user-friendliness and ease of navigation of cTrader? Does it offer a simplified trading experience that would be suitable for new traders?
Jun 12 2023
As explained in this article, choosing a broker with low funding costs needs to be considered carefully, especially for novice traders. I really like the free funding of trading fees. The reason is of course to minimize the amount of costs incurred. Some brokers usually provide long fund processing times, especially when withdrawing funds.
Now what I want to ask is, does OctaFX provide diamond deposits and withdrawals? The reason I ask this is because if it's true there are instant deposits and withdrawals at OctaFX. This can be a very good advantage. Also, is there a minimum amount to trade or deposit at OctaFX? Please help with the answer, guys
Jun 13 2023
OctaFX fulfills my and other traders' wishes. Apart from the cheap deposit and withdrawal fees, there are other things that are no less important for traders, namely instant deposits and withdrawals.
The instant and easy deposit and withdrawal process is one of the advantages of this broker. While several other brokers offer a long withdrawal process, even up to days. This is the advantage of OctaFX which guarantees the security of its customer's funds.
Because Octa Fx provides all choices of deposit methods which are quite instant. The deposit process itself only takes a few minutes. Maximum 30 minutes on OxtafX. So withdrawing funds at OxtaFX is around 1 to 3 hours. Even though this time it was not as fast as a deposit. However, this process includes a fairly fast withdrawal process compared to brokers where withdrawals can take hours. In addition, the activity of withdrawing funds from a real account requires email confirmation, so that no one can easily access your account. This is a form of security and convenience offered by OxtaFX to its customers.
Jun 14 2023
I have been trading at Pepperstone Broker since last month. Even though I initially joined OctaFX just to give it a try, OctaFx made it comfortable for me to trade as a beginner. I like the deposit and withdrawal service from this broker the most. Deposit OctaFx offers a minimum deposit which in my opinion is quite low. Yes around $50 we can make a deposit. Even though the minimum deposit is $50, you can start trading on the MT4 and MT5 platforms with a minimum of 25 USD. In my opinion, the minimum deposit limit at OctaFx is quite cheap compared to most brokers who offer a minimum deposit range of 100 USD -500 USD.
Jun 15 2023
I think the minimum deposit limit at OctaFx is quite cheap compared to most brokers who offer a minimum deposit range of 100 USD-500 USD.Actually I slightly disagree with your opinion. I admit that many of the withdrawal methods provided are instant and easy. As well as OctaFX provides security to its customers in withdrawing funds so that other people don't access it.However, on the one hand, instant deposit or withdrawal methods such as bank transfers are not available in several countries, including where I live. Even though in my opinion the bank transfer method is the easiest and fastest because almost everyone has it. OctaFx's focus in deposits and withdrawals is on cryptocurrencies but is less than optimal for bank transfers.
Jun 22 2023
Actually, I'm still new to the world of trading, and yes, I rarely hear about brokers that provide trading instruments and platforms. You must have known FBS and Exness which always appear in several advertisements on social media. As for the OctaFX broker, I have never heard of this broker, to be honest. I'm interested in this broker but maybe prefer to trade with a demo account to hone my trading skills. The broker offers support for MT4 and its easy-to-use proprietary platform, OctaFx Terminal, available as a desktop and mobile application.
But I can't say for sure whether this broker is good and safe. In this article, it is simply explained that OctaFx is subject to regulation in a number of different countries. I ask friends for clarification, is the OctaFX broker safe for my trades and funds? Is my personal data also safe here? If anyone knows, could you please explain...
Jun 23 2023
Hey, I totally get it. It is always important to do your research and make sure you are comfortable with a broker before jumping into trading with them. As for OtaFX, even though it may be new to you, it has actually earned quite a reputation in the industry since its inception in 2011.
As I know, the broker is known for its strong presence in the trading platform and instrument colors, especially in the Crypto trading realm. It has managed to attract traders with its offers and has become a leading broker in a relatively short period of time.
OctaFX established its legal entity in Cyprus and each gets a license from the local CySEC, which also applies regulations according to European ESMA standards. Under the European CySEC license, the broker also operates global offerings from international entities. (Read : OctaFX Review)
In addition, A range of regulatory requirements allow protection for clients and under European regulations this includes – segregation of funds, and the implementation of negative balance protection while the broker is continuously monitored by the authorities for compliance with its security. In addition, there is trader account security implemented by the Investor Protection and Compensation Scheme in case the broker goes bankrupt.
Jun 24 2023
OctaFX is regulated by the Cyprus Securities and Exchange Commission (CySEC) and registered with the Financial Services Authority of St Vincent and the Grenadines (SVG FSA). The company was regulated by the UK's FCA (Financial Conduct Authority) from 2015 to 2017 but decided not to renew its license after the Brexit referendum in favor of maintaining its focus on the EU market.
Jun 25 2023
I have opened an account with OctaFX for about 5 months and I have experienced the advantages and disadvantages of OctaFX. I really like the system and service at this broker, so I feel comfortable and comfortable keeping my money here.As you already know, this broker has been operating as a trading platform for more than 10 years. And yeah, still standing even now not without reason. What is certain is that this broker is trusted by traders, especially users of this broker.OctaFX does have a good reputation and its operations in Europe are supervised by one of the best regulators in Cyprus. Octa Fx Brokers is an award-winning company that provides trading in more than 28 currency pairs as well as precious metals under astounding trading conditions on the MT4 platform. Until recently, the company was authorized to offer financial services by the FCA (Financial Conduct Authority), one of the top regulators globally.This has proven that Octa FX has tried to provide convenience and security for its customers...
Jun 25 2023
I studied trading in college but never tried to use it because I didn't really believe in it. Well, this is my first time venturing into the world of trading. And yes, after reading this article I am even more convinced to jump into trading. And made Octa FX my first account in forex trading. However, this article does not explain how to register an account at Okta FX As far as I register for an account at a broker, there are account verification stages. How to register an account at Octa FX and verify it? Usually how long does the process take?
Jun 26 2023
The account opening process at OctaFX is simple and fully digital, and the account is ready for trading in no time. Account verification is only required for withdrawals. New traders should click on the "Open an account" button at the top of the page, after which they will be asked to create an account.
It is recommended to view the OctaFX Risk Agreement Statement, Client, Terms, and Conditions before starting trading.
To get more knowledge about OctaFX accounts, you have to read Which Account Type is Best in OctaFX?
Jul 13 2023
Imagine you're a trader with a small account, and you're eager to make the most of your trading journey. However, you quickly realize that having a small account comes with its limitations. One of the key challenges you encounter is the restriction on your trading options. The more you trade with a winning strategy, the closer you get to your desired results. But here's the catch: with a small account, you may find it difficult to reach your trading goals because your results tend to be more random when you're not able to trade frequently. So, the question is: How do traders with small accounts navigate these limitations and find strategies that work best for their situation
Jul 14 2023
@Justin: So, you've got a small trading account and you're determined to make the most of it, right? Well, here's the deal: having a small account does come with its challenges. One of the biggies is that you're kinda limited in your trading options. And here's the kicker:
So, my friend, don't let that small account hold you back. With the right approach, smart risk management, and a hunger to learn, you can find strategies that work for you and gradually grow that account over time. You got this!