Whether one starts with a $10,000 account or grows to that level, one gets the ability to
test and train with more strategies than at $5000. The biggest difference is to trade with
two currency pairs at a time. The $10,000 account should still trade with mini lot sizes,
but we increase the lot level to a maximum of three lots. The strategy for effectively
phasing into a $10,000 account requires that you first select the currency pair or pairs
you will trade. An important consideration is formulating a pip profit target that you
want to achieve each day. Determining your risk tolerance is a critical task. Let’s take a
step-by-step look:
1. Select two currency pairs to start your trading. One is a currency pair you like as your
favorite, and the other is a pair that your scan of the markets suggests is presenting
good conditions to trade.
2. Set a goal to achieve an average pip gain of 10 pips for the first 25 trades on one pair
and 20 pips on the second pair.
3. The maximum risk per day should drop down to 3 percent risk per day, or $300.
4. When using multiple lots, use an all-in and all-out strategy.
The Trader Log of Ross, A Real Beginner
Following is a real-world example of getting started. Ross, a beginning trader in London,
takes a controlled approach. After learning how to trade at Learn4x.com, Ross opened
a real account with approximately $10,000. A careful examination of his actual trades
(Table 1) shows a remarkable discipline. The initial trades were put on with small
sums to test his skills. Greater amounts per trade were slowly put on.
This trader had good initial strengths such as being able to have consecutive wins. A
key weakness is not putting on a limit order, and therefore getting out too early. Ross is
building key psychological skills in handling more money and facing the pressures that
this entails.
By Abe Cofnas
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