💼 Why Small Accounts Fail — and How to Manage Them Like a Fund

💼 Why Small Accounts Fail — and How to Manage Them Like a Fund

🎯 The Lesson

Small accounts don’t fail because they’re small.
They fail because traders manage them like a casino chip instead of a portfolio.
If you treat a $200 account like $200, you’ll gamble it.
If you treat it like $200,000, you’ll grow it.

⚙️ Step 1: The Biggest Small-Account Killer — Oversizing

With a $200–$500 account, most traders use 0.10 or 0.20 lots.
That’s 10×–20× too big.

Example:

• $300 account

• 0.20 lot on EURUSD

• Each pip = $2
  A 50-pip move → $100 loss (–33% of the account)

Three bad trades and the account is gone.
Small accounts die because they use big-account sizing on small money.

📉 Step 2: The Correct Position Size for Small Accounts

To survive, you must size based on percentage risk, not the dollar amount.

For a small account:

• Risk 1% per trade

• $300 account → 1% = $3

• With a 30-pip stop loss → $3 / 30 = 10 cents per pip → 0.01 lot

Yes. 0.01 lot.
That’s how you survive long enough to grow.

📊 Step 3: Use a Weekly Growth Target, Not Daily

Daily targets force overtrading.
Weekly targets allow patience.

Example:

• $300 account

• Goal: +5% weekly = $15

• Monthly = +20% → $300 → $360

• After 6 months → around $530

• After 12 months → $900+

Small growth — but steady and real.
That’s how compounding begins.

🧠 Step 4: Trade Fewer Pairs, Not More

With small accounts, choose one pair and become its specialist.
EURUSD or XAUUSD (on micro-lots only).
Know its rhythm, volatility, session behavior.
Mastery beats variety.

🔑 Step 5: Withdraw Only After Doubling

Rule:

Never withdraw from a small account until it’s at least 2× its starting size.

Withdraw early and you break compounding.
Let the account grow first — then pull profits safely.

🚀 Takeaway

Small accounts aren’t a disadvantage.
They’re your training ground.
If you can grow $300 with real risk management, you can grow $30,000 the same way.
Big money just magnifies discipline — or the lack of it.

📢 Join my MQL5 channel for more trading & risk-management insights:
👉 https://www.mql5.com/en/channels/issam_kassas