Don’t let the title scare you. We don’t call you to throw all your money into Forex trading. Moreover, I won’t tell you to trade borrowed money or investor money.
Everything you read here is based on real long-time experience of trading and coaching of Forex Academy team of traders, including me personally.
After reading, you will understand the advantages of trading big sums.
Small sums have no value
Way too often I heard my trainees saying:
“Why should I transfer $3000 to my account? I better put $300 and risk my entire deposit without a stop-loss. If I’m lucky, I’ll boost my deposit to $3000, and then I will observe my risks, trade by the TS rules and place my stops. And if I fail, I’ll put another $300 and try again. $300 is no big deal!”
Does it sound familiar? I believe, many of you have at least thought about it.
From our experience, I can tell you that newbies succeed only in 5-10% of cases, when boosting their deposits. It means that they put money on their account 10-20 times and have only one successful boost.
Actually, they succeed only due to expectation theory, not due to skills, knowledge or conclusions that a trader arrives at after 15-20 lost deposits.
On the contrary, a trader feels “inspired”. After such a boost, he is satisfied and careless.
“Finally, I beat the market. I’m the King!” These are their thoughts, they immediately forget the promises they made. This isn’t about risk management any longer! The next trade is another pig trade again.
And of course it leads to a wasted deposit, and the story repeats.
My trainee, who completed individual training, once told me:
- Andrey, I made some calculations. During my 4 years of trading prior to Forex Academy, I lost over $52 000! If I had completed my training at first and opened a $40 000 account, I could have worked with large lot volumes and manage my risks conservatively.
This is the example of a person who realised his mistakes and came to proper conclusions during individual training.
Our Forex Academy team of traders can help you see your fatal trading mistakes and help correct them.
Follow the link below and sign up for a trial individual session.
Sign up for free trial individual session with Forex Academy trader here
Big money increases responsibility and discipline
The example above shows a trader who lost a significant sum in small portions.
The mental technique “small sum is no big deal” is heavily exploited by lotteries and casinos.
- Buy a lottery ticket. It’s only $3! No big deal!
- Bet $5 and win 36 times more. If you lose, it’s no big deal!
- Open a $10 deposit and start earning with Forex!
I can go on, but you have already got the point. I’d better give you a homework.
Try to calculate how much money you have lost on lottery tickets, gambling or opening micro-accounts with a broker.
Now imagine, how much you could have earned, if you had gathered all this money together, opened a trading account and traded conservatively, managing your risks.
Please, don’t sit around and do this homework. It will do you a lot of good and open your eyes. Those bold enough can even share their results in the comments below.
If you put a significant sum on your account, it will increase your responsibility and improve your trading discipline tenfold.
It is important to invest your own money, because subconsciously you don’t treat the money you got during a foolhardy deposit boost as “your own”.
The larger deposit, the smaller the risk
The simplest and self-evident reason. But no matter how obvious, it’s worth mentioning nevertheless.
If you want to get considerable profits on a small account, you need to trade with high risk. Such trading implies extra stress and drastically increases the chances of losing money.
Simple calculations will demonstrate that getting the same potential profit on a $300 account and a $3000 account requires 10 times smaller risks.
At Forex Academy, we offer individual training with a contract-guaranteed doubling of your deposit, if you are seriously determined to trade,
For example, if your starting deposit is $3000 and you sign up for any individual training, our trader will individually coach you until you have at least $6000 on your deposit. It is the first and foremost goal of an individual training course.
You can learn more during a trial session with Forex Academy trader. Follow the link below to sign up, the first lesson is free.
Sign up for trial individual session with Forex Academy trader here
I expect that many of you will disagree with me in the comments. Some of you may point that not every person has spare $3000-$5000.
Before you write such comments, please, do the homework I gave you and read what my trainee told me. It will open your eyes.
If you are ready to train, I recommend to start with simple but profitable Horizon trading system. It is free of charge now! No SMS or hidden payments.
The trainees, who use it in their trading, get 57% of monthly profit on average. We created a video training course. You can simply watch the lessons, try the acquired knowledge on a real market and get profit!
Get 10 free Horizon TS video lessons here
At the end, I want to recall one common truth - buy nice or buy twice. It applies to Forex better than to anything else. That is why you must not save on your training or trading account.
Wish you all the best and profitable trades!