Growing Small Accounts Without High Risk

7 Jul

### Growing Small Accounts Without High Risk

#### What to Avoid:

• Do not rush to make massive gains in either pips or % returns.
  
• Do not open yourself to large risk in hopes of equally large returns or profits.
  
• Do not assume taking small risk-defined trades will not grow your account.
  
• Do not sacrifice trading equity due to poor planning or lack of planning.
  

#### What to Aim For:

• Determine how to realistically anticipate a favorable reward-to-risk model.
  
• Learn to respect the risk side of trade setups more than the reward.
  
• Identify trade setups that permit three reward multiples to one risk or higher.
  
• Frame good reward-to-risk setups that have little impact if unprofitable.
  

### The Reality of Reward to Risk Ratios

| Winrate | Minimum Ratio |
|---------|---------------|
| 75% | 0.3 : 1 |
| 60% | 0.7 : 1 |
| 50% | 1 : 1 |
| 40% | 1.5 : 1 |
| 33% | 2 : 1 |
| 25% | 3 : 1 |

If your winrate is 50%, you only need 1:1 Risk to be profitable.