The size of your trading capital plays a vital role in your success. If you really want to survive in the retail trading industry, you must learn to trade with the extreme level of caution. Most of us start our trading careers without having enough capital. Due to undercapitalization problems, we tend to trade with the high leverage trading account. Eventually, we take aggressive steps and loses a significant portion of the investment. But to trade in a small account, we need to follow some key steps. In this article, we are going to give you some amazing guidelines that will allow you to trade the market with a high level of discipline.
Lower the leverage
You should lower down the leverage of your trading account as it will protect your capital. If you trade with a high leverage account, you will be taking high risks to improve your account balance. But such an approach is never going to work in the long run. To survive in the retail trading industry, you must follow the basic protocols and take your trades in a standard way. Once you learn to trade in the low leverage account, you will realize the fact that you no longer have the power to trade with aggression. Thus you will be able to protect your capital.
Trade with discipline
You have to be keen with your trade execution process. If you break the basic rules of investment, you will never learn to take the trades in a standard way. Develop your discipline level so that you can take the trades with a high level of accuracy. Forget about the aggressive trading attitude and learn to deal with the critical market dynamic in a standard way. This will improve your decision-making skills and let you trade the market in a more structured way. Thus you will become more confident with your actions.
Study the candlestick pattern
By studying the Japanese candlestick pattern, you can improve your trading strategy to a great extent. Click to read more about the price action trading strategy slowly learn the candlestick pattern. Use the demo account to develop your basic knowledge and once you become comfortable with the price action trading strategy, you may use it to trade in the lower time frame. With the help of a price action trading strategy, you should be able to execute high-quality trades at the critical support and resistance level. This will definitely improve your decision-making skills and let you trade the market in a more structured way.
Learn to analyze the news
To trade with a small account, you must learn to analyze the news. Without having strong fundamental analysis skills, you will keep on losing money thus blame the market. Professional traders always encourage novice traders to master the art of the news trading method as it helps them to make wise decisions. While analyzing the major news, make sure you give priority to the high-impact news. If you ignore the high-impact news, chances are very high that you will never learn to trade with discipline. Once you become good at analyzing the high-impact news, you can take the trades at any instant. But remember, you do have a small account. Try to not trade during the intense volatility.
Trade with long term goals
You should long term goals to trade the market. Since you have a small account, trading with short-term goals can be very dangerous for your trading career. The only way by which you can protect your trading capital is by following the conservative trading technique. Study the important market details and try to evaluate the data in a higher time frame. Trade this market with long-term goals so that you can deal with the complex nature of the market with a high level of accuracy. Never get biased with the market since you never know what will happen next.