Don't have a lot of money to trade? Perhaps you are just learning and researching, not trading?

Is it possible to start trading with $1000?

The answer is YES and NO. It depends on how you manage your capital and set the trading volume.

Therefore, in this article, share with you the trading styles, suitable, feasible capital management methods and high winning performance with your initial 1000 USD account.

First you need to know, there are 3 types of transactions:

+ Day trading - traders will look for intraday fluctuations to make a profit, eating small price differences.

Swing trading - traders will look for longer-term swings, waves that last several days or weeks to eat the price difference.

+ Position trading - traders will make a big trend and follow that trend for a few months to make a profit.

For these 3 types, you should only use your 1000 USD to trade Day trading and Swing trading is the most suitable. Position trading sounds tempting because it's very heavy, but your account needs to have even better stamina to avoid deep price reversals.

Before going into the main topic, continue to introduce to you how to manage capital related to small accounts so that you do not have to leave empty-handed.

In short, random outcomes will directly affect your trading results. To be more specific, it is completely normal for you to experience a series of losses. And if you don't get it under control, your 1000USD will evaporate quickly.

Look at the table below:


We can see the level of loss and the possibility of recovering the corresponding account. For example, if you lose 50% of your account then you need to make 100% of your account back to get back to the original level.

Even worse, if you lose 90% of your account, you will have to make 900% back to get back to the original level.

Therefore, the first rule is not to lose too much or if there is a series of losses, limit the maximum loss value.

So how to limit?

DO NOT RISK EVERY TRANSACTION BIGGER than 1% of YOUR ACCOUNT.​

For example, if you have 1000 USD in your account, that means you can only lose 10 USD per trade (1% of 1000 USD is 10 USD).

10 USD maximum loss per order, so if you have a losing streak of 10 trades, you only lose 100 USD (equivalent to 10% of the account - not too big).

And according to the picture above, you only need to earn 11.11% to return to the original account.

HOW TRADE WITH 1000 USD ?

Trading volume: from 0.01 lot.

Applying the 1% rule mentioned above with a 1000 USD account, you are only allowed to lose 10 USD.

If trading with 0.01 lot, you will set a maximum stop loss of 100 pips, suitable for swing trading.

If trading with 0.1 lot, you will set a maximum stop loss of 10 pips, suitable for day trading or scalping.

Of course, it is not possible to trade with 1 lot.

So with 1000 USD and the capital conservation rule that I give you, you have two options to form your own trading style, one is to choose swing trading, the other is to choose day trading / scalping.

HOW MUCH WIN WITH A 1000 USD ACCOUNT?

The risk talk is over, now let's talk about profit. With an average annual rate of return of 15% (i.e. you earn 15%/year), let's see how much we make:

+ With 1000 USD account will earn 150 USD

+ With an account of 10,000 USD, you will earn 1,500 USD

+ With an account of 100,000 USD, you will earn 15,000 USD

+ With an account of 1,000,000 USD, you will earn 150,000 USD

So when will I turn 1000 USD into 100,000 USD?

Totally possible. Because you should remember this world has the 8th wonder, which is compound interest. Moreover, over time, your qualifications improve, every year you can earn more than 15%, that's for sure.

In short, for this article, I want to share with you newbie traders how to preserve your small capital with the 1% method. Because, your capital is only 1000 USD, but you enter a lot of 1 lot orders, not waiting for you to win, losing orders have already boiled your account.

To win, the account must first be able to hold out. If you want to hold out, you have to lose a little. Hopefully this article can solve the problem of capital management for new traders.