Hey hey: what's up my friends, so in today's episode i want to talk about what is the easiest way to grow? A small trading account? Are you ready for it, and answer is simple? Really, the easiest way is to risk 100 of your trading account. So if you have a thousand dollars trading account, you bet a thousand dollars on each trade, because, if you just achieve, let's say a one to one risk to reward ratio on your trade, guess what you just double the size of your trading account just like! That's it easy fast, but there's always a, but isn't it what's the downside? Well, it's this. Is it feasible? Is this approach? So yes right, you can double your trading account in one trade or maybe even you know in half a day, but is this something that you can do consistently over the next 10 20 30 years? And the answer is no because it's a matter of time. I guarantee you before you hit a losing trade or a series of losing trade, and you lose everything and, more so clearly, right growing.

A small trading account quickly and easily can be done, but the feasibility is a different story, and this is something that every trader must consider. You know i've read, you know comments on on some. Some of my youtube videos, where someone said no, you know, trading fx is boring. You know, you know on a 500 account, you know it takes forever to grow it, whereas you can trade, some penny stocks and then five hundred ten to you know three.

Four thousand within you know a few days: yes, that's possible. In fact, fx is possible as well, but again feasible. Is this something that you can be doing for the next 10? 20 30 years? So that's a question you have to ask yourself. I do not know.

What's your goal in trading, some of you might be doing it for the excitement. It's truly right trying to beat your record how how fast you can you know, turn the account around to make triple digit returns. But some of you are more serious about this and you want this to be something that can last for the next few decades and if you're looking at trading as something that will last a few decades, then you have to consider the feasibility portion. You can't be betting, the farm on every trade, all right.

So now, what's the solution, i mean, if you have a small trading account. So what's the solution to you know to growing it without you know, blowing it up and a few things to bear in mind. Number one you got to manage your risk, you can't be betting. You know 50 100 of your account on each trade, because it's a matter of time before you lose it all, so you have to dial down your risk right to be risking like one percent of your account on each trade, and now some of you might be Thinking but rain and one percent of my account on each trade.

If i get a one to two risk: reward ratio - rainer, that's only a two percent game. Yes, i know two percent might sound little right, but it's it's all about perspective and i'll talk more about that later on. But yes, i agree. Two percent may not seem a lot, but when you compound it right that little tiny bit of return right can snowball into something big in the future, and that's why you know i bring up again right.

What are you looking for in trading? Are you looking for something you know fast and crazy or something that is, you know slow and steady longevity or you know, are you looking for marriage or are you looking for one extent? That's my question to you. You get my point. Okay, so number one! You have to manage your risk right. You got to forget about the you know: the excitement.

You know the the doubling tripling of your account within a few days forget all that all of that stuff, because if you want this for the long term, if you want a lady, a wife that you want to marry for a long term, you got to take It slow and steady. You don't marry someone on the first date. Do you agree? Okay, so that's the first thing. Risk management second thing you need to do is to you got ta.

Add funds regularly to your trading account, so let's bring back to a thousand dollars trading account example. Now some of you might think a thousand dollars is uh. It's a it's! It's not even a small account. It might be huge account, especially for those of you who might be in your india, south africa.

Some of the audience are down there and then some of you might be in the united states or singapore, where a thousand dollars is a small account. So i'm just gon na keep things like kind of universal. Just keep things simple a thousand dollars. It might be big or small to you right, that's uh! That's something that you know uh! It can't be helped okay, so you have a thousand dollars trading account and let's say you, you compound your return for 20 years and each year you make an average of 20 at the end of 20 years.

That return right. That thousand dollars account will be about. Thirty eight thousand dollars uh three hundred and thirty seven dollars and sixty cents, you might be thinking well, rainer your math is really good yeah. This is because i have another screen over here that tells me that figure, okay, so so yeah it it compounds to about 38 000 after 20 years and having an average return of 20 a year.

So now what? If you have that same 1, 000 account, but instead of just simply compounding it right, you add funds to your account every year, every year you add another thousand dollars to that account so again same thing: right, a thousand dollars account and you're, starting with you add On another thousand dollars to that account each year and again it grows by an average of 20 a year, and you compound it for 20 years. How much would that be worth? That would be worth about 262, 000, 363 dollars and 20 cents, 262, 363, 20 cents. And that's like a lot more than the 38 000 that i just shared with you and that's all by regularly adding funds to your account. So can you see where i'm coming from? If you want to grow a small account? Yes, you can compound it, but if you want to put steroids into your compound effect right, add funds regularly to your account right every half a year every year you know whatever you know, you're comfortable with.

So that's the second tip i have for you and the third and final tip that i have for you is that you have to think long term. You have to think far and the reason for this is that just look around you right. If you want to be a doctor, you want to be a neurosurgeon. You don't become one after taking a weekend course or seminar.

You probably study medicine for like five or six years you go to the hospital you'll, be an intern, you'd, be a resident a few years under someone's apprenticeship and then. Finally, after 10, 15 years you become a neurosurgeon or if you want to be like a let's say, a top sales person in your company, you go through their training. You learn the products for the first few years after which you learn about human psychology. Persuasion, maybe after five six years you become a really good salesperson.

No one gets good, no one gets great straight out of the door or how about oh, no, the olympic athletes right uh. You know those hundred meter sprinters tournaments. They don't just you know, take up a you know, a weekend, training a year training and they just get good at it. They spend their entire life right just for that olympics, which occur once every four years they probably has like.

You know 15 years of 20 years of preparation and people come into trading, and they just think that no straight up straight off the gate right, they they're just going to be the best out there they're going to make profits consistently from the market, so clearly expectations Right is quite wrong right in this retail trading arena. Many people just get their hopes high. They get sold by all the latest marketing gimmicks and whatsoever and think that this is something that it can get really good. You know within a short period of time.

It's not going to happen and really, if anything, that's worth achieving right takes time right, like the examples i just shared with you and another thing that i want to share with you. Is that as you get better as you get more proficient, the competition gets lesser. What do i mean by this, and it's it's very simple, really, if you think about this usain bolt right, he used to be. You know the top runner in the world.

Do you think that he has any competition around him right? No because when you are the best, there's pretty much no competition because you're already the best. So what i'm trying to say is that as a newbie as a beginner, there's a lot of competition, there's a lot of people trying to get into this. You know this new, you know this scheme, this hype, this whatever and many of them right will just die out like flies right. They'll just give up because the first obstacles in their face they give up, they quit and those that progressively go up higher in the ladder of the skill right.

The competition gets less and lesser because more people leave the business and when there's lesser competition and when you're kind of near the top right. That's where you know you, you really will start gaining market share and make more money in the long run. It's the same concept as trading the first, or rather you just look at trading beginners, those with less than one year trading experience. That is the most number of traders out there right, because everybody's all hyped up, you know everybody want to quit their full-time job.

They want to trade full-time, and you know a lot of people are in this. You know so-called category in this stage, but as you keep in this business for a few years, the competition gets lesser because most who got started have already quit by then right. At this point right, you will face, you know so-called less competition, because you get more proficient you understand, you know what it takes to be a consistently profitable trader right. You can, you know, profit from you know losing traders who make the mistakes and stuff like that.

So competition gets lesser right, as you become more proficient, doesn't matter whether it's you know in athlete whether it's in business and stuff, like that, the better you get right, the the weaker the competition gets because you are getting stronger, okay, so same thing for trading right. If you want to get better at trading, you've got to put in time. You've got to think long term. Okay, there is no shortcuts over here right.

There is shortcuts, but it always come with a cost, and can you justify the cost and i'm guessing most of the time you will not be able to justify the cost all right. So so really right! That's that's all i want to share with you in today's episode hope you got something out of it and with that said, let's do a quick recap right, uh first thing: first right, you can easily grow a small account, but the risk is that you will lose Everything and more so feasibility wise. You have to consider about that second thing: to grow, a small account responsibly responsibly and steadily. You got to risk a fraction of your account on each trade.

You know what one percent on each trade. Yes, i know it's not a lot but manage your expectations right. The higher up. You go right, the lesser competition.

There is right because you get better right, you, you start, you know uh getting more proficient. What is it in business where you start getting more market share, or in trading you start understanding where traders get trapped and you can profit from them or you're, just getting more trading experience and skill set to know how you can make money from the markets in Different manner, you know you will get better and the competition will seem. You know relatively weaker to you and finally, right regularly add funds to your trading account, because that's how you can you know put the compound interest right on steroid. You know just inject with more.

You know whatever steroids, there is okay. So with that said, i have come to the end of today's episode and i will talk to you soon. You.