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Growing Small Accounts Without High Risk

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### 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.

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