ICT Mentorship Core Content - Month 02 Growing Small Accounts
The Inner Circle Trader・2 minutes read
New traders should focus on growing small accounts steadily with low-risk, compound-interest-defined trades rather than chasing high percentages. Consistent risk models, selective trading, and aiming for a 1.5% return per trade can lead to significant account growth over time.
Insights
- Small risk defined trades with compound interest can effectively grow an account over time, emphasizing the importance of consistent risk models and well-defined low risk parameters.
- Selective trading with a focus on minimal risk and consistent gains, aiming for a 6% compounding of equity per month, is a sustainable approach that can lead to significant returns without the need for high accuracy or daily trading.
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Recent questions
How can new traders grow small accounts effectively?
By focusing on small risk defined trades with compound interest.
What is the recommended trading frequency for consistent profits?
Selective trading in specific conditions is more effective.
What is the key to maintaining financial stability in trading?
Aim for trades that have little impact if unprofitable.
How can traders maximize profits from each trade?
Continuously study and strategize scaling options.
What is the sustainable approach to account growth in trading?
Focus on a 6% compounding of equity per month.
Related videos
Summary
00:00
"Growing Small Accounts with Low Risk"
- Month two of the ICT mentorship focuses on growing small accounts without high risk.
- New traders are advised not to rush for massive gains in pips or percent returns.
- Chasing high percentages or risking large amounts is not necessary for wealth building.
- Small risk defined trades can effectively grow an account due to compound interest.
- Consistent risk models with well-defined low risk parameters are crucial for success.
- Trade setups with three reward multiples to one risk or higher are recommended.
- Aim for trades that have little impact if unprofitable to maintain financial stability.
- Profitability in trading doesn't require high accuracy but rather time and compound interest.
- Aiming for a 50% increase in one month with selective setups can lead to significant returns.
- Focusing on a 6% compounding of equity per month with minimal risk and consistent gains is a sustainable approach.
16:15
Effective Trading Strategies for Consistent Profits
- Trading every day for consistent profits is not advisable as it invites losses; selective trading in specific conditions is more effective.
- Aim for a 1.5% return per week with low risk by identifying setups like order blocks on daily charts.
- Look for price points where moves quickly shift direction, indicating potential 20-pip or more swings.
- Confirm setups on lower time frames by scaling down and identifying key levels like 0.7512 on an hourly chart.
- Enter trades strategically at identified levels, adding a 5-pip spread for long positions.
- Gradually scale out profits at logical levels, aiming for a 1.5% return per trade.
- Manage risk by setting stop losses at 20 pips and adjusting stops to breakeven after reaching certain profit multiples.
- Continuously study and strategize scaling options to maximize profits from each trade.
- Consistent application of this strategy can lead to significant account growth over time, even from a modest starting balance.
