We might wonder who is a 5digit forex broker. A 5 digit forex broker is a broker who trades with an average of 100,000$.In this article we will try to show that the most important element in forex trading is the strategy and not the number of digits you are trading with as a trader can go from 0-100,000$ or from 100,000 down to zero if the wrong decisions are made.
THE HARDEST PART IS GETTING STARTED
This is true for anything, not just day trading. But without a doubt, the first couple of weeks were the toughest. In that time there were essentially zero margins for error and my account was only few bad trades away from dropping below the minimum balance. My main tools in this time were hotkeys, so that I could get in and out of positions quickly, and as much discipline as I could muster.
To make the most of these trades and to cut back on commission fees, I was dealing with a minimum amount of transactions, handling a lot of volume, and relying on momentum to quickly scalp breakouts before other traders.
I found good success with this strategy, so long as I kept my expectations in check. It was still difficult coming away with only $200 or $300 a day even though that was around 40 percent of my account. But by the end of my first week I had more than doubled my starting balance to about $1200.
INCREASING MY TRADES WHILE MANAGING RISK
That increased account equity really helped speed things up in the following weeks. Simply by virtue of being able to make more trades and effectively scale my position I was able to be more aggressive. While I was still not out of the range of completely tanking the challenge, I managed my risk effectively enough to minimize potential and actual losses. I ended week two up by more than 600 percent, and steadily grew that until I hit the $10k mark before finishing out January.On the last day of January I ended up chasing a trade I knew I was too late on, I failed to adjust my position, and that cost me $6,000.
It was a rough way to end the month, and it was my first loss on the yearFebruary continued to be an extremely up and down month, where I would gain anywhere from $8,000-$10,000 before giving up 70 to 80 percent of that the next day. March, the final month, started really strong. In fact, it started so strong that I was able to hit the $100k goal within the first six days. It helped that I managed four straight days of stellar gains that only increased, from $3,600, to $5,600, then $6,000, and finally cresting the goal with a huge $8,800 day. All told I hit $100k from my measly $583 account in 44 days, which even now still shocks me.
DON’T EVER LOSE SIGHT OF YOUR STRATEGY
The main takeaway I got from the experience was that having a strategy and remaining consistent is essential to finding success as a trader. There were times during the challenge where I was putting considerable pressure on myself to reach these goals I had set, and at times that pace worked against me by compelling me to alter my strategy and chase trades.
That was demoralizing, but it also showed that I shouldn’t pursue these massive returns if they don’t exist and understand when to cut my losses rather than average down, which is never a smart idea.
The content of this article reflects the author’s opinion and does not necessarily reflect the official position of LiteForex. The material published on this page is provided for informational purposes only and should not be considered as the provision of investment advice for the purposes of Directive 2004/39/EC.