Thread by @MapleStax

🧵 How to grow a small account🧵

(A THREAD)

This thread will detail a simple method on how to grow your small account from a psychological standpoint. These are my self realizations.
#ChartHashira

1. If you are trying to grow a small portfolio, you must establish that focusing on “home run” trades develops unrealistic and unhealthy habits for newer traders. Small wins compound not only gains, but also skill.

2. Identify whether you are a swing or day trader. In either instance, I recommend a cash account for most traders. T+2 for equities, T+1 for Options. Don’t limit yourself by PDT restrictions. Set a goal (R/r) for each trade. You can make a living on only 10-20% wins.

3. I plan all of my trades through proper analyzation and patience. I will wait until price comes into a desirable zone/area and watch how it reacts. If the reaction is something I recognize and have traded before I will take and entry with a defined stop loss.

4. Before going into a trade it is recommended that you have a certain % you are willing to risk. This manages losses while keeping the reality that not every trade will be a winner. Aim for at least 1:3 R/r, meaning if you risk 10 the trade should have the opportunity to make 30

5. Once your trading style is determined, find what setups and trends you enjoy trading or make sense to you. It is very important to incorporate patience into each trading session and only trade those setups once presented to you. This is called your “edge.”

6. Most traders trade without a defining edge, which leads to random/boredom trades. How can one achieve consistency if the basis of their style is random or without precision? No edge presented, no trade.

7. For myself: I enjoy break and bases (retests), ORB, S/D, channels, 9/20/200 EMA, downtrend breaks, and s/r. It took me an immense amount of time to find my trading style, but once identified I came to the market each morning with confidence.

8. Remove fear from the equation. Losing is a part of the trading process and as your account progresses the losses will match the account size. I could not fathom losing $1k until I was making $5k on trades, losses will be proportional to acct but multiplied if fear is present.

9. How do you remove bad habits that have been instilled through improper trading methods? Write down emotions you experience during your trading session and review them alongside the chart at night. Internalizing emotions does no good when trying to overcome your biggest problem

10. Moral of the story is to not swing for the fences, but to remain humble and understand that trading is a game of longevity. The longer you can keep your trading career alive the likelihood of success increases. You must have emotional and psychological strength to make it.

11. Come to the desk each day with no bias or fear from previous trading sessions. Be confident in yourself and ability to overcome anything. If other people have achieved it, then so can you. I believe in you, just be patient. KEEP YOUR SEAT AT THE TABLE.

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