What’s the point of trading with just £500

 

Sharing a house with teenagers, I’m all too familiar with the question, ‘What’s the point?’

Usually it’s about loading the dishwasher … doing some laundry … or getting out of bed on days when there’s no college.

But this week, it’s a question I’ve had from Trader’s Bulletin readers, after I wrote a message about the new, lower starting bank for HAV Trading.

You can now access this with just £500 in your account, trading with stakes in just pennies.

 

The question is … What’s the point in getting a 40% annual return on just £500?

Is it really worth the effort for just a few hundred pounds?

It’s a question that really misses the mark … and I want to show you why … and the 5 key factors that’ll make it genuinely worthwhile.

Here’s a demonstration of returns for a £500 starting bank, making just 2% steady return each month, compounding profits and adding an extra £50 to that fund at the end of each month.

After 12 months, that 2% each month has clocked up over 150% growth.

Sure, a good chunk of that growth comes from the extra monthly payments. So let’s look at it over a longer period, where regular installments and compounding really kick in …

Here, over a longer period, we can see that same £500 acorn building into almost £30k.

And the profit curve below shows just how fast profits are building if you have the patience to keep at it …

If you want to tap into this exponential profit curve, there are five keys to unlocking these profits …

5 keys to unlocking profits from a small fund

1. Look for steady returns

The charts above are based on a fixed 2% return per month. No trading strategy can actually match this – there’ll be good months, bad months, runaway years, and uncomfortable years.

However, there are strategies that offer a smoother profit curve than others. My advise is to focus on something like HAV Trading, which has shown consistent profits over more than a decade, and to avoid strategies that are screaming about their triple-digit, short-term percentages.

• Compound

Reinvesting your winnings is the most powerful tool you can unleash on your trading bank. However, compounding does not like volatile returns.

Match your compound investing with steady returns and you’ll have much more success.

• Make regular additions

The downside to compounding is that that early period when growth feels slow. But the trick to powering through that towards the rapid-growth stage is to make regular additions. This is the tool that hits the accelerator pedal when compounding.

• Give it time

Traders with small funds too often fall by the wayside. And the most common reason for this is that they over-leverage. Don’t be tempted to increase your percentage risk because you have less money. Your pot of £500 is just as valuable to you as a pot of £50k might be to someone else. Trade small, make regular additions, and exercise some patience.

• Get started

I know it’s obvious, but this is the step that most people just never take. All these great ideas, potential profits … will never happen until you take the first step.

And starting has never been simpler, because we can trade with smaller funds.

Please CLICK HERE to find out how you can claim your 60-day risk free trial

 

 

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