How to increase an account from 1K to 1MM
Typical question about trading and the goal of making a living from it. Quick answer: you can do it.
From my perspective, treating your trading operations as a business, and from business to company makes premises like the one we will address today make sense. Apple went from selling its first Apple I for US$ 600 to selling over $ 6 million per hour today$ 6 million per hour today, with tactics, strategy and above all capital from third parties. Don’t forget the latter.
Many profitable traders on their way up face the stressful dilemma of not knowing whether to withdraw from their account without depleting it too much, resort to multiple funding tests, or even choose the path of seeking funds and investors to multiply their score. How to do it should not be a headache today, but rather a motivation for your operation. In this article, I will focus on showing you the viable route to take your account from thousands to hundreds of thousands, or even a million; assuming you already have a profitable trading system or strategy with generated results.
In this article, I will focus on showing you the viable path to take your account from thousands to hundreds of thousands, or even a million; assuming that you already have a profitable trading system or strategy with generated results.
1. Educate yourself
On this journey, the first step is always to educate yourself. Our first-hand experience is to join a trading academy that teaches us about market basics, analysis, dynamics, and profitable strategies for buying or selling. If you are still at this stage, or want to continue expanding your education with the best trading academies/communities in your region, click here to learn more. They are the cornerstone of trading talent. Aspiring traders always start with demo or paper trading environments where they can demonstrate their effectiveness, but the next step is always your real account.
2. Be Profitable
Before getting there, you had to put your own money into a real trading account. Regardless of whether you trade in Forex, Futures, or any other market, your real account will reflect your performance under all the market’s emotions and circumstances, and achieving results in it is like truly winning a World Cup match. There are no warm-up games.
“Let’s provide a practical example from now on. You initially funded your account with US$ 5,000 and managed to increase it to US$ 6,000 (+20%) after one month.”
This step is as important as the break-even point for a company. Generating profits is the minimum required for a company to be attractive to owners or other investors (we will talk about that later). There are tools to measure your profitability and risk on a daily basis, for example, at Swiset you will have everything at hand to stay on top of your operations.
3. Be Consistent
Imagine that during an electoral period in your country, you have a voter intention study based on statistics taken from 500 records versus another study based on 500,000 records (ceteris paribus). Which one generates more confidence in you? It is clear that the probability taken from 500,000 data is much more reliable. This is vital in trading and it’s what we call consistency.
The important thing to understand is that you cannot consider yourself profitable until you are consistently profitable. Obviously, not all trades or weeks have to be strictly positive, but at the end of each month, semester, or year, the sum should be positive.
Data kills stories. The profitability of a trader who managed to beat the market by more than 10% every month for a whole year is more trustworthy than a trader who brought their account to 200% for only one month.
Your account went from US$ 6,000 to US$ 10,000 (+66%) over 6 months of consistently profitable results month after month.
Once again, Swiset will be another great tool ally in this stage, where measuring your consistency each period will be very simple and natural as a trader.
4. Fund
We cannot expect someone to believe in our business if we haven’t believed in it ourselves. This, along with other similar reasons, leads to the step of re-funding our account with more capital, which will prove why you want to take your account to one million dollars.
“The US$ 10,000 resulting from your great operation lead you to deposit an additional US$ 5,000 into your account, bringing it to a total of US$ 15,000. Then, with more consistent results over time, you manage to increase your account to US$ 25,000 (+66%) in the remaining semester.”
The above reaffirms the confidence, structure, and the following goals.
5. Get Funded
The real trigger for your operation, although it may seem logical, is unknown to many traders and is based on using third-party capital to multiply one’s trading. From a company’s perspective, it’s like seeking private financing (angels/VCs) or public financing (IPOs) from investors. In trading, there are multiple third-party mechanisms to finance yourself, such as Funding Trials, Copy-Trading, Private Funds, Individual Investors, etc.
For example, you can opt for a copy-trading platform where each third party copies/funds your trading and shares profits with you, and the best part is that it can be a person from anywhere in the world. Another classic case is with funding trials (see our recommended ones here), where you demonstrate, according to various risk rules and capital objectives, that you are profitable. These trials allow you to scale up to 100k, 300k, or even 1M in buying power (market position) after completing them.
Your $25,000 added to 100 people copying your system with average accounts of $5,000 will make you surpass half a million dollars of capital or AUMs (assets under management). Alternatively, your $25,000 will give you the method to pass 3 funding tests of $300,000, which will leverage your true position in the market. The same will happen if you choose the path of a Private Fund or seek individual investors who trust in your operation with $100,000 or more.
There is not just one, but multiple ways to achieve the goal of reaching hundreds of thousands or even a million, with sufficient discipline and mindset. As we discussed earlier, at the end of the day, you should always approach your trading perspective as a business – organized, pragmatic, and with financial goals in mind.
Final nod…At Swiset, we offer simulations for funding tests and even trading tournaments where you can earn free access to these great tests, trading bonuses, and more.
See you another time,
Camilo.
Camilo Tobar
CEO of Swiset
