Small lot with big profits

Here I want to discuss with you about the small lots and big profits, As you can see in the picture that the lot size is very small, this is a cent account and you can see that it is 0.50$ lot, which is equal to 0.05$ lot. 

Why I share this picture to you? because I want to tell you all that with the help of a good strategy and with patience anybody can make good profits with small capital and small lot, what was the strategy behind the whole scenario? What did I see? I am telling you in details. 

Actually I saw the psychological limit of the pair and made it in my mind that the EUR/JPY will not fall anymore, because there isn't any upcoming news in favor or Japan Yen, as you can see on the other chart, that is USD/JPY,  You can see that both of them are moving almost same, it means that yen is under pressure. So, its time to open buy order, but I opened only small lot, to make it long term, and that's why when market rose, you can see my profits in the above picture. but I haven't forgotten to use trailing stop in this strategy, and I will advice all of the people who are doing long trade, please use trailing stop, so that you may lose your money in case of market reversal. It is very much necessary, you can see the red line in the picture, that is indicating my trailing stop.

I think this is the best strategy for those who have small capital and want to do trade with minimum loss, I hope that will help my readers in their future trades.

What are strategies?

Well, there are a lot of strategies available on internet, mostly traders make their own trading strategies, according to their trading style, but in my view, the most popular strategies are only a few, in which most popular strategy is "SCALPING". 

Scalping is the most attractive and useful strategy I have found in forex trading, but I will not recommend anybody who is new in forex market. This is because it is very risky strategy. In this strategy you take only a few pips in profits, you don't wait for more, usually traders do it in neutral market trend, or sometimes traders do it when they see the market is moving between 20 to 30 pips, I personally do it while the market is moving between 20 pips. I don't wait for market rise up or fall down, when I see 2 to 3 pips in profits then I close the order, I usually try to swim according to stream, and it is better.

Other types of strategies are long term, short term, inverse trading, reverse trading, medium terms etc. These terms of strategies are popular, but I would like to inform my readers that read and learn all the strategies, but use them in demo account first, and after using them, try to memorize them, and you should be a sharp mind if you are trading in real market, because the real market involves your own money, and if you are trading in real market then you should prepare your mind for any kind of market bounce or reverse. 

Learning several strategies and changing them according to market trend is recommended. It will get you near to success and you will be able to understand the market trend. Although understanding market trend is not an easy task to do, but it will become easier day by day. 

In the short term you can be dependent upon news, usually I have seen that news impact on market partially and the impact usually reverse if the buyers / sellers are strong. So at that time short trades are recommended according to market trend.

In the long term, you open order according to signal and use big targets, in which you use trailing stop as target one to secure your orders and capital.

What are benefits of trailing stop?

Trailing stop is the option that we use to secure our profits and minimize the loss in our trading, whenever we open medium term order then we can use trailing stop to secure our order, you can find this option by right click on your existing order as you can see the picture below:

Here you can see the trailing stop and the options available with trailing stop, actually we set the points or pips to secure our opened order for sudden market bounce back. for example, if you use 15 points, then you will see that when market move more than 15 points in your order favor then you see a red line just after your order, this is actually a stop loss, and if the market will reverse then your order will close on that limit. Sometimes it cause you profits and sometimes it secure your order to go to negative and secure your capital with sudden fluctuation. Now a question arise, if it is stop loss then why not set stop loss manually, what is the need of trailing stop? So, I would like to tell you that when you set 15 or any points of trailing stop then after those pips you will see red line, and if the market continues its movement in your favor then the red line or stop loss will automatically move with the difference of 15 or the points you set. if you set more than 15, like 25 or 35, then you will see that if the market move between 34 points nothing will happen, and after 35 points when the market move one pip, the trail stop will move one pip. you can say it is an emergency break. But it is for medium or long term tradings, not suitable for short or scalping.