In this episode of Truth About FX, Walter digs into an interesting way of growing your $300 budget using a simple trading strategy. According to him, turning your hundred dollars into a kick-ass trading system is like getting over a snake phobia — or whatever fear you have.

And, did you know that boring yourself out of trading can actually help you?

Download (Duration: 04:20 / 4.96 MB)

In This Episode:

00:35 – place to start

02:34 – finer distinctions

04:16 – compound it

05:45 – better position

Tweetables:

Find a broker that will let you set specific lot sizes [Click To Tweet].

Compounding is the real magic  [Click To Tweet].

Don’t take the money out  [Click To Tweet].

Hugh: Hi, Walter. This question came in: how do I work with trading strategy with a budget of only 300 dollars?

Walter: Wow, that’s a great question. I think for me, that’s really a good place to start for a lot of traders, at least from my point of view. So, the way that probably if you’ve listened to the podcast you’ve heard me say I think you should forex tester, demo, small account and then work it in, move it on up from there.

You didn’t have to necessarily go from a 500 dollar account turning a system to a 50,000 dollar account but the point is to… It’s sort of like the same theory that they use when they’re trying to get you over a snake-phobia or whatever — or spider-phobia.

What they’ll do is they slowly introduce the snake, right? So, the first week is you just stand in the corner and the snake is in the aquarium on the other side of the room and they still leave you sensitized.

You can do the same thing with trading, obviously. The goal is to make it boring as you know. You’ve done this yourself, Hug, and that’s what we’re really trying to do as traders, got to make it boring but this question is a little bit off that.

The reason why I bring it up is because I think 300 dollar account is a great place to start. Now, it’s not a great place to start if that’s all the money you can scrape altogether. It’s better if it’s like the money that you can afford to pay tuition where to learn some lesson.

I think the real, deeper question here, what this trader seemed to be really saying when you say ,“How do I find the strategy that’s going to work with my 300 dollar account” is, if you read between the lines, it’s kind of like how can I accelerate my 300 dollar account quickly with a kick-ass trading system? Or, how do I make sure that when I’m risking a dollar a pip on my 300 dollar account, that I don’t blow it up or… You know what I mean?

Or, that’s kind of the subtext here. What I would say about it? I would say, “Look, you need to find a broker that is going to let you set your lot sizes quite specifically so you can trade for 11, 12, 15 cents a pip so that you’re not stuck trading 10 cents a pip or a dollar a pip or 10 dollars a pip or whatever.”

You really need to find a broker that is going to allow you those finer distinctions. And, the other thing is you probably shouldn’t even be trading t...