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Starting with a Small Trading Account? Here’s What You Should Be Trading

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It is the dream of every trading starting out to work at home, blow away their income, buy houses, cars and travel to exotic destinations.  We can dream right?

Then cruel, harsh reality starts to set in when we all realize that trading isn’t as easy as we thought, or perhaps we were promised.

As the dreams come crashing down a new reality takes hold.  We find that from this initial false promise there’s a new wave of traders who realize it’s still very much possible to pursue this dream – perhaps a bit modified in expectations of course!  Most people in this situation are ready to put forth the time and effort but likely are starting with a smaller account.  Perhaps this describes you?  It’s easy to trade with too much leverage and try and make home run trades every time you buy or sell but that turns trading into nothing more than a Las Vegas experience – entertaining sure – but ultimately doomed for failure – just a matter of when.

Instead, we suggest you follow a very specific, very proven plan to build up your trading account over time.  You absolutely must avoid certain futures markets in the beginning (S&P e-mini, Dax Futures, Crude Oil Futures) and avoid day trading most forex pairs (yes the EURUSD is to be avoided initially) and follow this method.  The reward?  You’ll fairly quickly get to a point where your trading account will enable you to start trading more position size – but take no additional time per day doing just that.  See how we do it here:

17 Responses to Starting with a Small Trading Account? Here’s What You Should Be Trading

  1. Darryl Menchan Jr October 14, 2014 at 6:23 pm #

    What does it mean to “trade additional contracts”? What is a “contract” in trading terms?

    • MarkSoberman October 15, 2014 at 11:27 am #

      Contracts are basically the unit size typically when referring to futures contracts (1 S&P emini contract for example) or options contracts (1 call option in Apple) — think of it like a position size like if you were going to trade 50 shares of Google. It’s the measurement of the size you are buying or selling in your chosen market.

  2. Jeff January 6, 2015 at 4:30 pm #

    So, once I have my $5,000 to work with, where or how do I actually execute these trades? Scott Trade and the like? Or something else?

    Thanks

    • MarkSoberman January 28, 2015 at 2:58 pm #

      Yes you would execute with a broker. Typically though with $5K you might be leaning more towards futures (such as the Dow e-Mini), forex or possibly some options trading – not typically stock trading.

  3. Chris Lang January 16, 2015 at 5:14 pm #

    Do you post a detailed long term track record (one year and over)
    what is your net P/L per week for a year
    Can I watch trades in real time
    Thanks
    Chris

    • MarkSoberman January 28, 2015 at 2:57 pm #

      Your best bet is to keep an eye open for upcoming live webinars where we share a lot of trade performance and stats with you. Thanks.

  4. vince February 14, 2015 at 9:44 am #

    I am interested in getting the training you offer. Currently I Have an account with TD Ameritrade with 2K in it one I go ghrough your course how do I get started I have the think or Swim platform and as I understand that will not work with your system so what system should I get? And where should I go to get it?

    • MarkSoberman April 15, 2015 at 9:48 am #

      Hello – with Think or Swim we are compatible with some of our trading systems though not all. My suggestion is to make sure you are on our email lists and attend some of our live webinars where we go over our systems and our compatibility. Our options trading course definitely is compatible and our forex swing trading courses would work. We are still developing our latest futures system to work.

  5. Dalisay Dwinells February 20, 2015 at 9:04 pm #

    These are great ideas and concepts. However, to be able to trade futures you have to represent that you have assets valued at $50k. Can you explain why it is also necessary to set up a separate futures account than my existing account.

    • MarkSoberman April 15, 2015 at 9:46 am #

      Much depends on your broker. For example, if you trade with Interactive Brokers they have a Universal account and you can trade virtually anything from inside that one account – stocks, options, futures, forex. So it really depends on your broker. And you do want to trade futures only with brokers that have a lot of experience and move a lot of transactions in futures.

  6. Molina March 26, 2015 at 1:12 pm #

    Would like to get started asap

  7. john April 4, 2015 at 9:03 am #

    what the best platform for small accounts

    • MarkSoberman April 15, 2015 at 9:42 am #

      You can never go wrong with http://www.tradestation.com however there are minimums there that might be an issue so if you are talking forex then going with a MetaTrader 4 broker where the platform and data are free and the minimum account balances are smaller makes sense.

  8. George +6285232120961 or PIN 7d4bbbad April 11, 2015 at 4:14 am #

    How can I set my money management for forex trading ?

    I mean the min capital I should have, the min lot size I should handle for my starting point, which contract size I should deal concern with the size of capital and the lot size, last, the level of leverage which I use to start.

    As your suggestions in your video, I have to use 1% – 2% for risk per trade so the risk of the average trade should be max about 2% of available capital.

    • MarkSoberman April 15, 2015 at 9:40 am #

      The max risk per trade should always be no more than 2%. Above that and you risk large drawdowns. You simply take your account size times 0.02 and that will give you the most you should risk. For example if your account is $5,000 x 0.02 = $100 per trade risk. Let’s say the trade you are about to take is a 50 pips risk to the stop and it’s the EURUSD so you know that’s $1 per pip per mini contract. This means 50 pips x $1 = $50 per mini. $100 max risk/$50 risk per mini = 2 mini contracts. That’s how you need to size your position. Thanks.

  9. George +6285232120961 or PIN 7d4bbbad April 11, 2015 at 4:17 am #

    Do you have free forex trading system for small account ?

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