A few weeks ago, I decided to give trading another shot after experiencing losses in the past. This time, I started with just $10. Trading with a small budget helped reduce my anxiety about losing money, allowing me to feel more comfortable and confident in my decisions. Over several weeks, I managed to turn that $10 into $160! Hereâs how I did it:
#### 1. Keep Things Simple
There are countless tools available for trading, which can feel overwhelming. I focused on learning the basics of trading analysis, including:
- Trend Lines
- Support and Resistance Levels
- Candle Patterns
- Volume
- RSI/Divergences
- EMAs
These were the key elements I used for my own analysis.
#### 2. Mindset Matters
Stay calm and donât stress. Avoid rushing into trades; always analyze each opportunity thoroughly. If youâre busy with work, exercise, or other commitments, hold off on trading until you can focus in a calm environment.
#### 3. Use Stop Loss and Take Profit
Setting a stop loss is crucial. Always establish your stop loss when entering a trade, especially when trading with a small budget, as itâs easy to get liquidated. I learned this the hard way in the past! Also, remember to take profits when you can; donât let greed cloud your judgment, as price movements can turn against you quickly.
#### 4. Manage Leverage Wisely
Avoid excessive leverage. In my past experiences, using x75 or x100 led to liquidation. Now, I stick with x20, which has worked well for me.
#### 5. Donât Go All In
If you have $20 and use x20 leverage, you can trade $400. However, donât risk all your funds on one trade. Be patient and start small; consider trading with just $50 to allow room for more trades. The more trades you execute, the more experience you gain.
â Remember, trading is a journey! Stay disciplined and enjoy the learning process.