Have you ever wondered if its possible to profit from the Forex Market by trading a small account? I set myself a challenge to to see what returns are possible swing trading a $50 account which resulted in a 150% gain in less than 4 months.
1. Key Stats
During the trading period I made 42 trades over multiple currency pairs with one losing trade of $0.32, all other trades were closed in profit. The average return per traded was 2.2%, which is very high, but remember I was trading a small account and therefore getting a high percentage return is quite easy. Another data point that is noteworthy that can be reviewed in the Raw Data sheet below is that I did not set any stop losses.
2. Cumulative Performance
The below chart is a snapshot from the account in myfxbook.com. Note the equity and growth lines are tight, this indicates a very low drawdown. All trades were closed in profit at the end of October. I later put more money in the account and continue to trade which skewed the percentage growth on the left of the chart.
The following charts show the steady profit increase until the end of October when the challenge ended. Many traders wont be impressed by the sum of money but I hope there will be some that will appreciate the consistent profitable trades over a long duration. Making money in Forex Trading is super easy but traders tend to give the profits from those quick easy wins back to the market, consistently making profits is the true prize.
3. Currency Pairs
The below table depicts the numerous opportunities I applied the Thumb Money method to to make the consistent gains. Its honestly easy to make 150% gain by getting lucky and riding a trend BUT its not so easy to make that gain by trading multiple currency pairs at different times. I did not trade more than one currency pair at any given time, I rarely had more than 3 open trades open at once,
Trading a $50 account is very difficult, in fact its much more difficult than trading any account that has more equity. The reason for this is, you have very little room for failure, if one trade goes bad you have little room to recover because you have so little equity and margin. Its similar to a small aircraft flying at low altitude, if it stalls it will likely plummet into the ground before the pilot has time to recover the plane. The reason I was successful in this exercise is because I only traded what I thought were very high probability opportunities. I didn't force my trading on the market but patiently waited for the right opportunities to present itself, this is why it took over 3 months to make $75 profit. I would have likely failed if I gambled on any opportunity that might work out.
If you want to learn more about how I find high probability trades or how you can safely and profitably trade without stop losses then contact me to schedule a free 20 minute coaching session.
Author: Ryan Norris Creator of the Thumb Money Method
Micro Account Raw Data