At some point, every trader who opens a trading account wonders: “Is it possible to grow your account from, say $100 to $1000?” Everyone understands that if you want to trade successfully, you need to start with at least $500.
But where can you get this money?
Trading in the foreign exchange market carries great risks, which is why few novice traders are willing to sacrifice a large amount of money. One rash step and a wrong trading decision could wipe out your account completely. To minimize such risks, you can use a technique, called deposit acceleration.
What is deposit acceleration?
Let us tell you right away that this is not a trading system, it’s more of aggressive trading with increased risk. In this case, the words “acceleration” and “risk” are directly related.
If a trader wants to accelerate his Forex account, he must be prepared to lose his entire deposit in case of failure. One should also keep in mind and fully understand that this method shouldn’t become a “go-to trading strategy” since exceptionally high risks, maybe not immediately, will still get your account wiped out.
Do you want to avoid this? Always review and adjust your trading plan. After you’ve doubled or tripled your deposit, switch to a less aggressive strategy. of course, it won’t make you a millionaire overnight, but it will allow you to receive a stable income with moderate risk.
Advantages and disadvantages
The main cons of deposit acceleration include:
– increased risks;
– challenging, stressful, and emotionally tiring;
The main advantages of deposit acceleration are:
– you do not need to keep all the money in the account. You can deposit only the funds, designated for acceleration to your account;
– you don’t need to invest big money at the start, you can start small and grow your deposit from just a hundred bucks.
Deposit acceleration techniques
You can find lots of strategies on the web that will tell you how to grow your trading account almost from zero. Here are some of the most popular techniques:
- Use aggressive expert advisors. This is the simplest and most popular way to quickly increase your deposit. Most of these aggressive EAs are based on the Martingale method and use it in their trading. The trading robots show good results in a flat market, but if a strong trend manifests itself, these EAs can drain your entire deposit, especially if you have minimum funds on your balance. This option is considered the simplest, but at the same time, it is the riskiest one.
- Using averaging down strategy. This strategy is based on a simple principle: every losing order is backed by an additional series of trades i.e. you invest additional funds in a trading instrument if it declines significantly in price after the original investment is made. This technique will not work well with a strong trend. To accelerate your deposit using averaging down, the price must periodically pullback. If a stable trend appears, you risk losing the entire deposit in a short time
- Using scalping-strategies when trading the news. This trading method is less risky, but to use it a trader has to possess certain skills and abilities. Trading the news can be very profitable and allow you to generate serious income, but only if a trader knows how to follow and react to the news and major events and makes the right trading decisions.
- Trading mirror currency pairs. The profitability of such strategies is lower, but they are less risky.
What is the right way to accelerate your deposit?
Let’s take a look at these recommendations:
1) You need to start with a small deposit. Even if you have $ 1000 at your disposal, you should invest only $100.
2) Develop a trading system and stick to it. You can also use ready-made strategies, you can find plenty of them on the Internet. There is no need to reinvent the wheel, all methods and trading strategies are already out there, you just need to pick the right one that will help you achieve your goal.
3) Gradually increase the volume of your transactions.
4) If something goes wrong, it’s better to pause and take a step back. There is no need to increase your trading volumes and try to recoup all your losses at once. Taking a step back means cutting back on volume, taking a better look at your strategy, and maybe trying to adjust it. Whatever you do, do not cover the loss by increasing the trade size.