I am a beginner in trading, open a cent account at FBS, with a small capital of 5$ in the hope that it can grow and increase the balance to a lot, maybe by rolling (compounding), with a stop loss of only around 100 pips, can I succeed in trading?
@ Maryadi:
Compounding in the sense of increasing lot size?
In that way, theoretically it can grow rapidly if always profitable. The problem is in trading we do not assume always profit, but the opportunity for profit and loss is fifty-fifty, no matter how sophisticated the trading system used.
By compounding, you have indirectly increased the risk, so when it's your turn to lose, the value of the loss will also be large. Read also: Compounding Profit
In addition, a resilience of 100 pips is generally quite small. Usually between 300 to 500 pips (if you want to use all your funds, without restrictions). But if you want to limit risk, for example, you only want the risk to be 5% of your funds, then you can use position sizing.
For a more complete explanation, please read: Money Management Strategy With Position Sizing.