How to Grow your Trading Account?

3,957 views · Published 25 February 2015 · 20:14 · Indexed 26 October 2026

Channel: Djellala Make Money Trading Stocks · 2015 · Howto & Style

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There are many ways to grow your trading account. Most beginners think that the only thing to grow the trading account
is to be successful in trading stocks. This is true, but there are more important than this. It is to save money into
your account even if you dont use the money. This habit of saving money will increase your account in many years.
You need a bigger account in the future. Because here is the deal. When you are a beginner having a big or a small account
is not that important because you cant trade well. But when you succeed to make money, you will need a big account to make more money.
This is called the buying power. Thats why many traders use margin account to borrow money. Borrowing money is not always a good
solution, because you will have to pay interest fees if you are holding stocks for many days or weeks or months like we do in swing trading.
See the difference of owning 100k or having a 10k. There is a big difference. If two traders have the same level of trading experience
and you give them one 100k and the other 10k. Let say they make 25% profits during the year. Now who has made money?
The first with 100k has made 25k. while the other has made only $2500.
The best thing to do is not trade with money when you are a beginner, just save as much money as you can. Understand your broker
can not use your money, it is like a bank account. Then you trade only the money you want from your account.
When you are good at trading and you have experience at that time you need all your money. 
At that time making 10k or 25k a month will be very easy, because you have enough money to trade.

On the opposite hand, if you have little money, you will be struggling to make money, because your account is too small to bear
commissions and fees expenses.

Do the same as the 401k where each paycheck you cut some money for your saving investment. Your investment will do well
not because of the market, but also because you put money and save regularly.


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Risk Disclosure:
Futures and forex trading contains substantial risk and is not for every investor. 
An investor could potentially lose all or more than the initial investment. 
Risk capital is money that can be lost without jeopardizing ones’ financial security or life style. 
Only risk capital should be used for trading and only those with sufficient risk capital should consider trading.  Past performance is not necessarily indicative of future results.
Hypothetical Performance Disclosure:
Hypothetical performance results have many inherent limitations, some of which are described below. no representation is being made that any account will or is likely to achieve profits or losses similar to those shown; in fact, there are frequently sharp differences between hypothetical performance results and the actual results subsequently achieved by any particular trading program. One of the limitations of hypothetical performance results is that they are generally prepared with the benefit of hindsight. In addition, hypothetical trading does not involve financial risk, and no hypothetical trading record can completely account for the impact of financial risk of actual trading. for example, the ability to withstand losses or to adhere to a particular trading program in spite of trading losses are material points which can also adversely affect actual trading results. There are numerous other factors related to the markets in general or to the implementation of any specific trading program which cannot be fully accounted for in the preparation of hypothetical performance results and all which can adversely affect trading results.

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