Podcast:

Can you really make money with a small Forex account? (PART 1)

In this weekly video:

00:23 – Trading with a small Forex account

01:06 -  Can I make money successfully?

01:30 – Why do so many people lose money?

02:30 – Keeping it simple is usually the best way to trade

03:18 – Learn how to trade first

04:35 – The size of your trading account right now is irrelevant

05:10 – Invest in yourself

05:32 – Excellent trades taken live for good account gain

07:34 – Next week’s video and how you can profit from the Forex market

Can you really make money with a small Forex account? Let's talk about that and more, right now.

Hi, traders. Andrew Mitchem here, the owner of The Forex Trading Coach, with video and podcast number 294.

I want to talk all about trading on a small Forex account, and can you make it as a small-time Forex trader?

Trading with a small Forex account

Now, I made a video along a similar subject line around two years ago, and it's had an enormous amount of hits on YouTube. It's had about 108,000 views, and lots and lots of comments, so I thought what I'd do is I'd split that subject up into more detail and cover it over this video and podcast, and also next week's video and podcast. Why? Well, it's obviously a very important subject, with so many people wanting to find out more about it, but it's also quite a large subject, so probably more than just one episode.

So let's start at the very beginning. With a small account, people want to know, can I make money successfully? Now, the answer is yes. The problem is, most people don't know how to do that.

Can I make money successfully?

And I say the answer is yes, and I'm saying that with confidence due to my experience. I've been trading Forex for 15 years full-time, been teaching for almost 10 years. But the problem is, is as you know, and as I've repeated many times, the stats out there tell you somewhere between 90-95% of all Forex traders lose money, and that's probably absolutely true.

Why do so many people lose money?

Now, there's a huge number of reasons for that and we'll cover the reasons now, and then on the next episode we'll cover how you can overcome those.

But some of the reasons, and in no particular order, would be, really, a lack of strategy, a lack of understanding of the market, a lack of understanding of good money management, a lack of discipline as a person, a lack of understanding of what type of trader you are or wish to be. Are you a technical trader, or a fundamental trader, or a bit of both? What timeframe charts do you like? Where are you going to put your stop loss? Where's your profit target? What type of trades are you taking? Are you going to take reversal trades, continuation? Are you using indicators? Are you using no indicators? Are you using just price action? Are you going to trade just before the news? Just after the news? What is it that you're going to do?

The problem is, is that unfortunately, most people don't know their own answers to that. I can tell you, in all honesty, with many years of practical experience, keeping it simple, like the KISS approach, is generally the best one. So you don't need to have lots and lots of strategies.

Keeping it simple is usually the best way to trade

You don't need to have lots and lots of indicators and lines all over your charts. Now, some people say to me, "Hey, Andrew, why are you saying that when your charts behind here look really complicated?" Well, the fact is that they're not. I have some clever software that alerts me, alerts my eye to certain candle shapes that I'm looking at, and then I mostly use horizontal support resistance lines, pivot points, and then I've got a couple of other indicators that come lower down in my priority, to add some confirmation. So you don't need to clutter your charts, and that's what works for me and works for my clients.

So coming back to the reality of it, can you make money? Well,