MONEY IS FEELING, FEELING IS MONEY?

Money is something so powerful, do you agree with me that, sometimes, not, most of it dominates our emotions, especially in this market. Losses are afraid, more losses are despairing. Words are happy, many words are subjective, presumptuous.

The more money, the greater the emotional surge. So what about a 100 USD account? Of course, it's not much, but compared to the demo account that you previously traded, it gave you a lot of feeling "sublimation".

On the first day of entry, the EURUSD pair formed a bullish pin bar candlestick at the confluence of many resistances/support/trendlines, Fibonacci resistance levels, ... Trader judged it to be an A + entry setup.

No need to hesitate with your 100 USD account, we will buy with a risk of 2% of the account ie 2 $.

After 4 days of waiting, the price hit take profit and eat 4% of the account, ie $ 4. $ 4 is not much, but the money makes us happy because of the first time transaction that made money.

Will you get a $ 4 profit when you fail?


This world is so cool that we made 4% of our accounts in just 4 days. Again, 4% of the account, not $ 4.

This primitive thought is the beginning of a series of countless losses in the future.

But when we think of 4%, we think we are talented, can make 4% / 4 days, so in a month, maybe 22%? Super profit!

A realistic and talented trader will look at the absolute numbers. $ 4 is a more accurate reflection of the other 4% because after all, we are just holding a $ 100 investment fund. If you hold more than that, 1000 $, even 10,000 $, it is unlikely to make 4% like that.

Remember 4% is enough for you to trade with a 100 USD account.

1000 USD IS MONEY BUT 100 USD IS MONEY


Some traders still think $ 100 in the market is worth nothing. Just fight to get a little feeling, if you want to get rich, you have to hit big, 10,000 USD for it!

Sitting otherwise, no one will naturally give themselves 100 USD, that 100 USD will also sweat it. Besides, 100 USD instead of putting in the market, you can buy trading books about reading, buy milk for your baby, take your wife/girlfriend out, ... So you must use that 100 USD to trade for it was worth it.

Don't expect $ 100 to make you rich. It just helps you to get a lot more experience in trading style, psychological experience, broker nonsense, knowledge gaps, the market reality, ... that demo accounts never offer. granted to you. 100 USD and buy so many lessons are too cheap.

So with this mindset, the 100 USD account is for learning, learning, and learning. To learn how to properly value 100 USD. Or to make it easier to understand, how to keep the account as long as possible to learn more lessons?

ATTENTION ON CAPITAL MANAGEMENT - MEDIATION, MEDIUM CREATING CONDITIONS TO LEARN


Capital management, risk management, and trading order management are always ignored, disregarded, and even boycotted by new traders.

They are the keys to success, you don't need them, so what's the point in entering the market?

If a trader has the right mindset from the start, they will leverage their first account to practice capital management, as closely as possible. Firstly, that trader has a practical approach to capital management, risk management has been learned. Second, due to good capital management, their account is optimized, less loss, if there is a fire, it will take longer to burn than normal traders. Capital management like?
  1. Follow the 2% risk rule. With a 100 $ account, each order can lose up to 2 $. Of course, the profit is not much, but the $ 100 memory candle cannot get rich.
  2. Trading volume is 0.01 lot, so the maximum stop loss is only 20 pips. Stoploss 20 pips are fine for small timeframes too.
  3. There should be a clear Risk: Reward ratio to make it easy to recount the effectiveness of the method you are trading (who do not know about this ratio, please comment below for me to explain more).
  4. Statistics of the winning rate on the total number of orders (winrate).
  5. Regularly review old transactions to learn from experience.
  6. After you have some necessary data, read more on my article to measure the effectiveness of your method. After you open a larger account, you can make a profit using that method.