Does having a lot of investing money make trading for a living much easier?

[jerry0]

I never done trading so curious on this.  Also don't have the money to trade as it would be for small amounts so I don't think I could make much.  Is that true or false?  You need a lot of money to start if you want to make enough trading for a living right?



Now imagine you are someone with no job but have a lot of money.  Or a lot of money and a job... doesn't matter.  But you have lot of money to invest.



Let say you want to make around 50k a year for someone in the US trading  As im sure lot of US ppl know, if you trade short term, you have to pay like 35% on your short term gains.  And you pay 15% when long term but obviously people want money coming in monthly like income with a job.



Now imagine someone with a million dollars as investing money... decide to buy 100 btc with the price at 10k a coin to make it simple.  I don't want to use an altcoin as an example because those are risky and you can easily lose everything as coins do drop to zero... so basically stick with the top coins on the list.  Now let say btc went up and down for the next few days and then btc went up to say 10500, now the person sells all 100 btc for 1.05 million dollars.  Let say trading fees are 0.25% fees.  Is that the rate now for trading btc?  Now in the first transaction, to buy a million dollars worth of btc.. fee would be 2500 dollars right?  Then when you sell the btc... fee is 2625 dollars... can anyone confirm the math here? 



So basically in these transactions... the trader made 50,000 usd... but pays 5125 usd in fees right?  So net profit is 44875 usd?  So say that is the only transaction this person did all year with trading, they pay tax on short term for 15706 usd on their profits... so they make 29169 usd right?



If so, there tons of ppl doing this?  Because it seems like if you have a lot of investing money... with how btc is... and it going up and down... wouldn't trading make a lot of sense for someone with a ton of money?  I mean we seen ten percent increases and higher in a few day span.  And obviously it goes down that as well but as long as you hold and don't sell, well you don't lose.  Now imagine a huge thirty percent increase in btc to 13000.  This person would make 300000 usd minus fees and minus taxes... they would still take a net of like 190000 usd right?

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[jerry0]

If this is all true, wouldn't it make sense for ppl with a lot of money to do these trades?  I mean even if you have a job, well you could do this on your free time easily right?  I mean I know you could even set the software in the trading app where you could have it automatically sell all your coins once its a certain price so you don't even have to look at it.  Then say it hits the price you want to sell it all, then you net all the profit... so its like you have extra income.


Obviously if you are trading, you would be staring at prices all day... but not if you do it this way right?



But if you want to make 50k usd or so, how much investing money would you need?  I have to assume at least double that minimum right?  I think you probably need like a quarter million dollars?  Now if you have a few hundred dollars or a bit more... i guess only way is to buy altcoins and see if they explode... then now you have the money to buy btc since btc is the most consistent coin there is in terms of reliability?

[exstasie]

I never done trading so curious on this.  Also don't have the money to trade as it would be for small amounts so I don't think I could make much.  Is that true or false?  You need a lot of money to start if you want to make enough trading for a living right?

Yes. You need significant capital to make large enough trades to make a living off of. If you've only got $20 in capital, the idea of making a living from it is crazy.

Not only that, but a professional trader needs to hedge against downswings and drawdowns, periods where they under perform vs. their expected profitability or lose money. That usually means having a cushion of several months or better yet a years worth of living expenses saved. You need enough cushion that you are psychologically fit for trading (not emotional) and not forcing trades because you are desperate to make money. Not having enough cushion in the bank is very dangerous for someone who depends on their trading income.

Let say you want to make around 50k a year for someone in the US trading  As im sure lot of US ppl know, if you trade short term, you have to pay like 35% on your short term gains.

That's only near the very top tax brackets, if you're making $200K+ a year. You pay your ordinary tax rate on short term gains. For some people, that means 10%, not 35%.

So basically in these transactions... the trader made 50,000 usd... but pays 5125 usd in fees right?  So net profit is 44875 usd?  So say that is the only transaction this person did all year with trading, they pay tax on short term for 15706 usd on their profits... so they make 29169 usd right?

If so, there tons of ppl doing this?  Because it seems like if you have a lot of investing money... with how btc is... and it going up and down... wouldn't trading make a lot of sense for someone with a ton of money?

Trading isn't easy. It is not like printing money.  A lot of those traders will end up losing money. Most of them, in fact.

[Reid]

The main problem is, would you really think about that when you have a lot of money in your hands?
I won't.
I will try a less risky method.
Business.

It ain't easy doing trades, most of the time you lose. I did.
Even though you have the right experience and best analyst on your side, it won't go the way you want it every day or week or month.
All those sweet words are just for advertisements.

[ChrisPop]

On leverage trading platforms you can trade BTC with a $50-$100 account. The risk will be proportional to position size and risk management strategy.
We can debate on this subject for long, but putting it simple having more money allocated for trading activity should provide you with more mental comfort. Don't forget that emotions are your no.1 enemy in trading. Be consistent and stick to your strategy.

[jerry0]

I never done trading so curious on this.  Also don't have the money to trade as it would be for small amounts so I don't think I could make much.  Is that true or false?  You need a lot of money to start if you want to make enough trading for a living right?

Yes. You need significant capital to make large enough trades to make a living off of. If you've only got $20 in capital, the idea of making a living from it is crazy.

Not only that, but a professional trader needs to hedge against downswings and drawdowns, periods where they under perform vs. their expected profitability or lose money. That usually means having a cushion of several months or better yet a years worth of living expenses saved. You need enough cushion that you are psychologically fit for trading (not emotional) and not forcing trades because you are desperate to make money. Not having enough cushion in the bank is very dangerous for someone who depends on their trading income.

Let say you want to make around 50k a year for someone in the US trading  As im sure lot of US ppl know, if you trade short term, you have to pay like 35% on your short term gains.

That's only near the very top tax brackets, if you're making $200K+ a year. You pay your ordinary tax rate on short term gains. For some people, that means 10%, not 35%.

So basically in these transactions... the trader made 50,000 usd... but pays 5125 usd in fees right?  So net profit is 44875 usd?  So say that is the only transaction this person did all year with trading, they pay tax on short term for 15706 usd on their profits... so they make 29169 usd right?

If so, there tons of ppl doing this?  Because it seems like if you have a lot of investing money... with how btc is... and it going up and down... wouldn't trading make a lot of sense for someone with a ton of money?

Trading isn't easy. It is not like printing money.  A lot of those traders will end up losing money. Most of them, in fact.

Are you from the US?


If so, you say thats only the highest tax bracket percentage... I dont think you are correct here.  Aren't all short term profits doesn't matter the amt taxed at that rate though?  Im pretty certain it is?


Well if you buy btc only like in my example and never sell it unless its higher than your bought price... then you don't lose right?

[milewilda]

I never done trading so curious on this.  Also don't have the money to trade as it would be for small amounts so I don't think I could make much.  Is that true or false?  You need a lot of money to start if you want to make enough trading for a living right?

It isnt really necessary for it to make it big because all matters here on how you do trade efficiently and profitably.It doesnt need to start up on big time and if you are
just starting up from scratch then you're most likely to lost up those funds in first tries.Dont rush up on making yourself sustainable.Yes, it cant give out the
chance to trading for living but it isnt really easy as it sounds yet this situation or target to be attained with take years before you would able to consider yourself
sustainable.

If so, there tons of ppl doing this?  Because it seems like if you have a lot of investing money... with how btc is... and it going up and down... wouldn't trading make a lot of sense for someone with a ton of money?  I mean we seen ten percent increases and higher in a few day span.  And obviously it goes down that as well but as long as you hold and don't sell, well you don't lose.  Now imagine a huge thirty percent increase in btc to 13000.  This person would make 300000 usd minus fees and minus taxes... they would still take a net of like 190000 usd right?

Main advantage for those people who do have financial capacity.Of course they can earn tons but to think into the other side that they can lose big time to.It will always
equate on how much you had risk and how much the reward that you can potentially earn or also lost.Fees? Its always been part of the ecosystem and you
should really get used to it.

[CarnagexD]

I never done trading so curious on this.  Also don't have the money to trade as it would be for small amounts so I don't think I could make much.  Is that true or false? 

It's hard for a low starter to make much lol you need a lot of analysis to pull that of perfectly, but I think you could make a fair profits out of it, also depends on how small the amount it is, we have different views on that one. The question isn't true or false, it's non binary actually.

You need a lot of money to start if you want to make enough trading for a living right?

Advisable in trading yes, there's this benefit that you could easily regain your losses when you have a huge load of money. But I disagree, your initial amount in trading does not matter as long as you know how to handle it, it is just your expectation that fails you in the long run.

[jerry0]

I never done trading so curious on this.  Also don't have the money to trade as it would be for small amounts so I don't think I could make much.  Is that true or false?  You need a lot of money to start if you want to make enough trading for a living right?

It isnt really necessary for it to make it big because all matters here on how you do trade efficiently and profitably.It doesnt need to start up on big time and if you are
just starting up from scratch then you're most likely to lost up those funds in first tries.Dont rush up on making yourself sustainable.Yes, it cant give out the
chance to trading for living but it isnt really easy as it sounds yet this situation or target to be attained with take years before you would able to consider yourself
sustainable.

If so, there tons of ppl doing this?  Because it seems like if you have a lot of investing money... with how btc is... and it going up and down... wouldn't trading make a lot of sense for someone with a ton of money?  I mean we seen ten percent increases and higher in a few day span.  And obviously it goes down that as well but as long as you hold and don't sell, well you don't lose.  Now imagine a huge thirty percent increase in btc to 13000.  This person would make 300000 usd minus fees and minus taxes... they would still take a net of like 190000 usd right?

Main advantage for those people who do have financial capacity.Of course they can earn tons but to think into the other side that they can lose big time to.It will always
equate on how much you had risk and how much the reward that you can potentially earn or also lost.Fees? Its always been part of the ecosystem and you
should really get used to it.

Well if you only buy btc... isn't that really safe if you had to pick one coin to choose?  You say... where you could lose big time... well unless you sell at lower price... u dont lose right?  I mean if btc drops to 8k even when you bought at ten k, you dont sell you dont lose... but say it hit a good amoutn higher, then you sell and lock in profit though?

[Renampun]

based on my experience of course having a large capital will provide a big profit...
but easy or not to trade it depends on your abilities, not your money. you have a lot of investment money in trading but do not have the skills to support your investment money, I make sure you will lose quickly in trading.

[AmoreJaz]

I never done trading so curious on this.  Also don't have the money to trade as it would be for small amounts so I don't think I could make much.  Is that true or false?  You need a lot of money to start if you want to make enough trading for a living right?

It isnt really necessary for it to make it big because all matters here on how you do trade efficiently and profitably.It doesnt need to start up on big time and if you are
just starting up from scratch then you're most likely to lost up those funds in first tries.Dont rush up on making yourself sustainable.Yes, it cant give out the
chance to trading for living but it isnt really easy as it sounds yet this situation or target to be attained with take years before you would able to consider yourself
sustainable.

If so, there tons of ppl doing this?  Because it seems like if you have a lot of investing money... with how btc is... and it going up and down... wouldn't trading make a lot of sense for someone with a ton of money?  I mean we seen ten percent increases and higher in a few day span.  And obviously it goes down that as well but as long as you hold and don't sell, well you don't lose.  Now imagine a huge thirty percent increase in btc to 13000.  This person would make 300000 usd minus fees and minus taxes... they would still take a net of like 190000 usd right?

Main advantage for those people who do have financial capacity.Of course they can earn tons but to think into the other side that they can lose big time to.It will always
equate on how much you had risk and how much the reward that you can potentially earn or also lost.Fees? Its always been part of the ecosystem and you
should really get used to it.

since the OP is very new into crypto trading, he really doesnt need to start big. what may happen if he will start big - he will lose all the money that he has at the start, as no experience or skills in crypto can easily wipe out his funds. ok given that he will stick to btc at first, but he should always stick to the simple trading rule - buy low, sell high. and how he will do it? is up to him. this is the reason why he needs to start small, get the grasp of crypto trading, know how things are moving, how coins are getting pumped, etc.
 dont get the mindset that trading big will give you income that will be good for your living. it may be true for other traders, but not all can make that happen. it depends on how a trader strategise his trading activities, and that takes time and experience and lots of tips and tricks gathered along the way.
if someone starts big, and lose big time -thats the time we hear regret and sometimes they blame bitcoin or crypto for being fraud and spread wrong info to others. but lets admit it, it is the ignorance of most newcomers why they are being ripped off in this business

[mersal]

If you are investing on something with the hope of it will give returns to feed you next morning is absolute stupidity, you can only start making money when you give enough time for the market to become more successful for you.If you have money for your survival and have extra money on your savings which is really not needed now but its something for your retirement plan then you can pull something out of it and turn them into more money in less time period compared to other kind of investment plans.

[dimonstration]

If you have bigger capital there is a bigger chance to gain more as it multiples the opportunity of profit based on your capital. But since we don't suggest to put all in one basket and in one projects. Diversify it accordingly based on your knowledge and skills, not all who have money can be successful in trading especially if they don't have time to monitors it.

While, it's also applicable to those who didn't have much capital to trade, but also able to gain much profit because of their skills and dedication to analyze the graph and do it in just short term. If we're able to watch the market all day long and can easily analyse the chart then having enough capital to risk is also acceptable.

[Danslip]

No need to overthink this, the calculation should be done in percentages. The trader makes 10% in a month, it is the best monthly profit target for big boys. For the taxes part, I have no idea about US rules. But there are many countries which don't have tax rules for capital gains included profits from crypto, stocks, forex trading. So I doubt a profitable traders will doubt traveling the world by making a 10% monthly gain from the account. Personally I know one trader from Germany, lucky trader takes his family and goes to travel the world while trading on his Macboook. Hope I am able to explain my opinion. 

[palle11]

Having a lot of money to trade can make the trader lose discipline in the business. Such kind of trader usually believe that equity or the trade balance you have will help you in the trade and you keep taking wrong trade decision. A low account trader can be very discipline to build the account. Having money management is the best, you know how much risk to take for a particular trade.

[crzy]

Stop complicating things and start trading now without any expectation since your example is not a reality and don’t think for an easy money in this market. Having a lot of money doesn’t guarantee a good return, you must have the skills to trade, and start earning.

If you have a small capital then its fine, the goal here is to remain profitable and to achieve your target profit, despite of the losses, the trading fees and tax at the end of the day you gain the skills that is needed in order for you to succeed, consider trading as your job and always do your best. TAYOR!

[lienfaye]

Is that true or false?  You need a lot of money to start if you want to make enough trading for a living right?

If you're just starting you dont need to use a lot of money as capital its a very risky move since you are not knowledgeable enough to face the consequences of your action. You need to follow the process of slowly learning by experience.

Then if you already know the nature of how trading works and you're ready to risk your money and depend on your trading income for a living then its time to use a lot of capital to gain huge profit as well.

But its not going to be easy, plan and strategy are needed. Have a risk, time and stop loss management.

[goinmerry]

You have mentioned you are lacking trading experience. Therefore, questions like that will surely be on your mind.

Instead of going too much complicated, let's make this simple and short. Why not just start and learn how to do trades and see the results by yourself. Either you go on a small and fair amount (for testing purposes) or go directly with decent capital.

And quick advice, don't take and consider trading as a primary source to support your living.

[abel1337]

Is that true or false?  You need a lot of money to start if you want to make enough trading for a living right?

If you're just starting you dont need to use a lot of money as capital its a very risky move since you are not knowledgeable enough to face the consequences of your action. You need to follow the process of slowly learning by experience.

Then if you already know the nature of how trading works and you're ready to risk your money and depend on your trading income for a living then its time to use a lot of capital to gain huge profit as well.

But its not going to be easy, plan and strategy are needed. Have a risk, time and stop loss management.

That's right, It's a common myth for those who really didn't try trading that you need a big amount to start trading for a living, It's better to start using a small capital for for a starting trader because that's the stage that a trader is just learning. You can't make a profit in trading even if you have any kind of amount if the knowledge you are possessing is insufficient. I'm sure that the one who spends all their money in trading before accumulating the knowledge and experience they needed will dry out in the process.

[maxreish]

Having a lot of money will be unworthy and useless if you are not wise enough to manage and handlr trading and investments.
While it is an advantage to have a huge capital in trading and investing but having a good choice of coin, selecting potential coins with good returns is very significant.

Same in trading, you have to gain more tools and techniques so that huge capitak of yours will not go to waste. Good management plan js also one of the important things to implement in trading.