Small capital and Big capital

[bitcoinst]

Obviously, the more your capital, the less market volatility will affect you, but your waste and risks increase in proportion to the amount of funds.

For example, with a large deposit, you can lose a lot of money on commissions, and with a bad market, you will lose a lot on transactions.

In general, large deposits are not for beginners.

[1714927227]

1714927227

[MiF]

Trading and investment is a game of numbers and moreso how to use the numbers judiciously while properly applying the knowledge. Some people say small capital is the best to start trading with while others say small capital will leave you with limited choices that the best is to trade with big funds. Starting with big fund will always be the best provided the user is able to manage it. So many things are connected but I conclude that big capital is good but a good trader can work with small and big funds and make profits with it. Let me hear your opinion on this!

If you are a newbie and you want to do trading you need only a small capital because you don't have an experience yet, you need only a small capital because you are in the starting point and you have a big possibility of losing than gaining you are in a learning stage so you are in favor of losing and using a small capital will reduce the risk, however it is still depend on you because there are also trader that didn't loss on trading or somewhat like what we called lucky or maybe born as a natural trader, experience is important so even if you failed just continue.

[qwertyup23]

For me, small capital and big capital are both useless if the one who's holding it will just invest or trade recklessly if the person who is holding it will invest it in a coin without any knowledge or doing any research about it. It is about the person who is going to make it happen and not about the capital because any capital will do as long as you are good.

I kinda disagree with your statement.

I think the key factor in trading/investing is knowing which coin to invest on. From this alone, this implies endless amounts of research on the part of the investor since the goal here is to reduce the risks of the possibility of losing your investment. Regardless if you have a small or a big capital, your mindset should always stay the same.

Obviously, the more your capital, the less market volatility will affect you, but your waste and risks increase in proportion to the amount of funds.

For example, with a large deposit, you can lose a lot of money on commissions, and with a bad market, you will lose a lot on transactions.

In general, large deposits are not for beginners.

I think it also depends on the individual's capital to begin with. Personally, there are some people that I know who are beginners but they started trading/investing with a large capital. But like what I previously mentioned, it required them to study and to research about the market situation in order to reduce the possibility of losing their investment for short-term.

[Mahanton]

Trading and investment is a game of numbers and moreso how to use the numbers judiciously while properly applying the knowledge. Some people say small capital is the best to start trading with while others say small capital will leave you with limited choices that the best is to trade with big funds. Starting with big fund will always be the best provided the user is able to manage it. So many things are connected but I conclude that big capital is good but a good trader can work with small and big funds and make profits with it. Let me hear your opinion on this!

If you are a newbie and you want to do trading you need only a small capital because you don't have an experience yet, you need only a small capital because you are in the starting point and you have a big possibility of losing than gaining you are in a learning stage so you are in favor of losing and using a small capital will reduce the risk, however it is still depend on you because there are also trader that didn't loss on trading or somewhat like what we called lucky or maybe born as a natural trader, experience is important so even if you failed just continue.

Start with small capital when you are just starting because you are still on the phase of familiarizing even with the slightest indicators or terms which would be needed into your trading career.
Big capital is only on the time when you do already familiarize on what you've been doing but to think that this wont really be giving some guarantee that you could really make sure profits.
Odds are still the same but since you already have experience then it is really totally different when you are already knowledgeable.
You would know the difference of having big and small capital.

[jossiel]

Obviously, the more your capital, the less market volatility will affect you, but your waste and risks increase in proportion to the amount of funds.

For example, with a large deposit, you can lose a lot of money on commissions, and with a bad market, you will lose a lot on transactions.

In general, large deposits are not for beginners.

It will still affect you with the market's volatility.

But we both do agree that with such amounts, it's not for every newbie because it's risky for them and that's what they should study first and make a decent strategy through depositing with smaller amounts.

It suits them as they start.

[awik p]

Obviously, the more your capital, the less market volatility will affect you, but your waste and risks increase in proportion to the amount of funds.

For example, with a large deposit, you can lose a lot of money on commissions, and with a bad market, you will lose a lot on transactions.

In general, large deposits are not for beginners.

It will still affect you with the market's volatility.

But we both do agree that with such amounts, it's not for every newbie because it's risky for them and that's what they should study first and make a decent strategy through depositing with smaller amounts.

It suits them as they start.

it is better to understand it first before deciding to trade or invest. especially for beginners who have little capital. but in my opinion even if he is a beginner if he invests in the long term, I don't think it will be a problem, as long as he knows the risks to volatility that can affect a person's psychology. especially in the current conditions, of course investing will minimize risk and of course by choosing the coin with the largest capitalization

[DOH!]

Trading, like investing, is important to know how to calculate probabilities and manage risk.  Consider high volatility situations that accompany panic.  It is best to learn to crawl before learning to walk.  Even though I've had big losses for 2 days today.  Lol, when trading small/large funds, the difference is in enduring the pressure between loss forming in thought.  Forgetting pressure is a lesson I'm trying to learn

[TheUltraElite]

Trading and investment is a game of numbers and moreso how to use the numbers judiciously while properly applying the knowledge.

So many things are connected but I conclude that big capital is good but a good trader can work with small and big funds and make profits with it.

Is the first line is true then both big and small capitals can be worked with. The only difference will be that the total valuation of the portfolio will vary. But all good things have to start out small and the terms small and big are relative. It depends on what you consider as big or small.

If you ask me, a trader should start with a capital no less than 1k USD.

Capital will also not factor in if you are investing in shitcoins - do that and you will see the gradual devaluation of your portfolio be it small or big. But putting in bitcoin at low price and avoiding altcoins altogether will have better outcomes. Of course for seasoned altcoin traders, feel free to ignore my rambling.

Capital should therefore not be considered as the biggest outcome determinant of speculative trading but along with proper backing of market research and some insight.

[slaman29]

the size of your capital doesn't change the size of the danger. It's the size of what you risk in proportion to what you don't risk. Which is where the adage comes that "Never invest more than you're willing to lose".

Size of your risk will grow along with your size of capital but it MAY not diminish when you are downsizing your capital. The only solution here is, we must increase our capital along with our experiences.

I guess we both understand risk differently then. Risk does not change if you put $1 or $100 on an outcome (unless you're talking about billions in which case slippage risk is a factor). You still have the same risk no matter the size of your capital, from a retailer point of view.

I guess this is why I'm not a trader and loads of people on this forum are since we really understand these fundamentals differently!

[calya]

Trading, like investing, is important to know how to calculate probabilities and manage risk.  Consider high volatility situations that accompany panic.  It is best to learn to crawl before learning to walk.  Even though I've had big losses for 2 days today.  Lol, when trading small/large funds, the difference is in enduring the pressure between loss forming in thought.  Forgetting pressure is a lesson I'm trying to learn

calculating probability in our trades really help us to get best result in every trades. No matter how much our balance in trading  account , but when we could make profit probability bigger than loss  so in this level we will growth our money. Our experience will determine our level while analizeing market to identity loss or profit probability in trade that we will open. 

[Tahsin Kabir Kollol]

In the case of a skilled trader, small or large capital only reduces the amount of profit or loss. However, small and large capital certainly has some advantages and disadvantages. In the case of new traders, large capital can cause more losses. Money management is considered to be the best way for new learners to master the subject of small capital money management. Which helps a skilled trader to reduce the number of losses in large capital and make more profit. In the case of large capital, it is possible to average the total assets by dividing the total assets into smaller parts and purchasing them from different locations at low speed in the market. In the case of small capital that does not work emotionally. So the mental endurance and emotion of a trader create some advantages and disadvantages for small and large capital.

[Pamadar]

In the case of a skilled trader, small or large capital only reduces the amount of profit or loss. However, small and large capital certainly has some advantages and disadvantages. In the case of new traders, large capital can cause more losses. Money management is considered to be the best way for new learners to master the subject of small capital money management. Which helps a skilled trader to reduce the number of losses in large capital and make more profit. In the case of large capital, it is possible to average the total assets by dividing the total assets into smaller parts and purchasing them from different locations at low speed in the market. In the case of small capital that does not work emotionally. So the mental endurance and emotion of a trader create some advantages and disadvantages for small and large capital.

Favoring experienced traders in this point, as they can utilize the usages of their funds.

You explained and give hints and following your point, with new traders having huge amount of capital leads them to a risky situation as if emotions beats them the chance to lose big portions of those capital is very possible, and in the other side,  experienced traders who use small capital are capable to grow their money in a shortest span of time.

[Karish2return]

I prefer small capital for the beginners because it is trading and it is upon the trader that how can he manage himself and what did he want for himself? If he want to earn more and the capacity of loss then he should use big capital. And for beginners, I prefer small capital.

[Vaculin]

I prefer small capital for the beginners because it is trading and it is upon the trader that how can he manage himself and what did he want for himself? If he want to earn more and the capacity of loss then he should use big capital. And for beginners, I prefer small capital.

Capital is a thing you'll need to consider upon starting, either it was small or big capital that was it depends on your capability and your choice. If you will use a small amount as you are afraid to lose it all, that is still the right decision. Perhaps, that was most advice as a beginner.
Well, if we are already prepared enough and have fully understood that market it was best to increase our capital as this could help us to generate more profit but, the risk of losing more is a thing that we can't just simply set aside.

[LongStand]

Large capital equities are typically thought to be more cautious than small capital or midcap stocks, providing less risk in return for less aggressive growth potential. Large capital are more established, and as a result, they are less volatile during downturn markets as investors seek safety and reduce risk. Investors may find small and mid capital stocks to be less expensive than large capital stocks, but smaller equities have higher price volatility.

[Qirtov]

Actually big or small capital depends on how you manage it. But if you are still a beginner I suggest starting with small capital. At least you can know and practice using strategies in cryptocurrency. In addition, if suddenly you experience a loss it does not take a lot of money. but keep in mind again that if a Small capital will give you a small risk and a small profit as well, and vice versa if you have a large capital there will be a big risk and the profit is also big. The important thing is that you have to really believe in yourself and understand cryptocurrency before you jump into it so you don't take the wrong step.

[Karish2return]

It all depends upon the trader that how much he has the capacity to lose and is he emotionally stable or not? For example if a trader has more money and he can invest without any hesitation. So, this will be done with big capital as it will give the trader more profit. But if a trader don't have that much then he should be starting with a small capital.

[Anamika1000]

I prefer small capital to start trading for newbies because they have to know about the trading strategies and they also can learn a lot even from their small capital of investment. But they should learn some basic strategies of trading and also they can watch some tutorials on youtube as well.

[Rexler]

I do not advise anyone mostly the newbies to start big. You will never know how much you can lose as someone who's still testing the market.

It is best to test only with small amounts so you can formulate your strategy and you're going to have an idea how much you can earn and lose with your quick trades.

Rightly said! As a newbie trading with big capital they won't be exposed to the fact they can likely loose everything, and since it's a big capital there might not be cautios and keep repeating same mistakes due to the fact the capital is big they would just keep trying often and often not identifying the actual cause of thier lose, but a little makes a newbie more cautios and would likely learn about risk management quickly because he wouldn't want to blow up his account so soon.

[zanezane]

I prefer small capital to start trading for newbies because they have to know about the trading strategies and they also can learn a lot even from their small capital of investment. But they should learn some basic strategies of trading and also they can watch some tutorials on youtube as well.

That's the ideal for a newbie traders given that they already have an adequate experience and knowledge in trading, that's the way it should start and if they can grow that and they become really good with trading, they can start risking a bit more bigger funds to try and make more profit.