The most important rule in gold trading: never risk more than 0.01 lots on £100. Scale gradually as you grow your account. This is how you survive and thrive.
Start with 0.01 lots on a £100 account
This means you're risking a small, manageable amount per trade. If you lose, it's not catastrophic. If you win, you build capital.
Increase by 0.01 lots for every £100 earned
Only increase your position size when you're profitable. This ensures you're trading with your own money, not borrowed money.
Month 1: Account = £100
Position Size: 0.01 lots
Risk per trade: £1-2
Month 2: Account = £250 (earned £150)
Position Size: 0.02 lots (increased by 0.01)
Risk per trade: £2-4
Month 3: Account = £500 (earned £250)
Position Size: 0.03 lots (increased by 0.01)
Risk per trade: £3-6
Month 6: Account = £1,000 (earned £500)
Position Size: 0.06 lots
Risk per trade: £6-12
Year 1: Account = £5,000 (earned £4,000)
Position Size: 0.50 lots
Risk per trade: £50-100
Notice: Your account grows exponentially. After 1 year, you've turned £100 into £5,000. This is the power of consistent, disciplined trading.
Small position sizes mean small losses. Even if you have a losing streak, you won't blow up your account. You'll survive to trade another day.
Starting small lets you practice, learn, and build confidence without risking too much. As you grow, you become more experienced.
By reinvesting your profits and scaling gradually, your account grows exponentially. Small gains compound into big wealth over time.
When you follow a strict position sizing rule, you remove emotion from trading. You don't have to think—you just follow the rule.
This is where most traders fail. They start small, make a few wins, then suddenly jump to huge positions. One big loss wipes out all their gains and more.
Week 1: Start with 0.01 lots, make £100 profit
Week 2: Make £150 profit, feeling confident
Week 3: Jump to 0.10 lots (10x increase) to make "real money"
Week 4: Hit a losing streak, lose £1,500 (wiping out all gains + more)
Result: Account blown up. Back to zero.
Increase position size by 0.01 lots for every £100 earned. This is slow, but it's sustainable. You're always trading with your own profits, not borrowed money.
Never start bigger. Small position sizes are your safety net.
Only increase when profitable. Only use your own profits.
Every trade must have a stop loss. No exceptions.
Once set, keep it. Don't let emotions change your plan.
Gradual scaling is the only way to build sustainable wealth.