Lack of capital or knowledge, which one is holding traders back from profits?

[$weetne$$]

This question came to my FYP on X and I could relate because at a time in my life it was the lack of knowledge of not knowing how to trade that was holding me back from making profit until I started learning how to trade from my mentor and I can make some profits when I get my reading of the market right. I also had the challenge of getting capital that I can use for trading because I was depending on my trading profits until I got to know that trading needs a trader to have other jobs because you can not only depend on trading profits when you do not know how to trade excellently. Other traders are having difficulties in trading because they do not have the right information that they need to become good traders or because they lack the capitals.

What can you say about this two problems, how will you advice a trader that is suffering from any of this problems or how did you get out of the problem if you had suffered from having lack of capital or lack of knowledge. Which of this problem is more common among traders?.

[goaldigger]

It’s more of a Lack of knowledge that trader is holding back to make a good profit because regardless of your capital as long as you know how to trade properly, you can have a good profit.

In trading, your knowledge is very important as you need to analyze the market the right way and also need to know how indicators works because trading is more about probability and analyzing, if you will just depend on any guess trade, then don’t expect to make profit.

[Mpamaegbu]

Knowledge is the principal thing, whether in trading or in other endeavours.of.life. Without knowledge, we wallow in ignorance and grope in thick darkness.

I also had the challenge of getting capital that I can use for trading because I was depending on my trading profits until I got to know that trading needs a trader to have other jobs because you can not only depend on trading profits when you do not know how to trade excellently.

Well, on the part that traders should get other jobs to survive on until they're good at trading isn't an out of the space advice. It's the right thing to do. No one depends on a skill they don't have a mastery of. It cuts across.

What can you say about this two problems, how will you advice a trader that is suffering from any of this problems or how did you get out of the problem if you had suffered from having lack of capital or lack of knowledge. Which of this problem is more common among traders?.

Novice traders arrogantly blame lack of capital for their woes instead of their lack of knowledge. With set skills acquired, any trader can grow as little as $5 into wealth through compounding. All it takes is patience to get right entries. I'm not talking of trading memes. I'm talking of trading genuine and fundamental projects. It's doable.

[batang_bitcoin]

What can you say about this two problems, how will you advice a trader that is suffering from any of this problems or how did you get out of the problem if you had suffered from having lack of capital or lack of knowledge.

To solve it, it's easy and all you need to do is find a source of income. It won't be solved by asking different ways of starting out because no matter how good you when you don't have capital, you will not be able to start.

Which of this problem is more common among traders?.

Getting into futures without testing themselves if they're prepared for its volatileness. The futures trading is interesting for them and gives them the high risk-high reward ratio but, they think that high risk is easy to take. But no, they'd be surprise when they have been liquidated on an instant of the market's volatility.

[BitMaxz]

The common is lack of knowledge because if it was a capital, I have a few friends on a trading group whose capitals came from airdrops, meaning they only invest time to earn some airdrops that they can sell once listed from exchanges.

Knowledge is one of the very important things before you enter into trading and I'd like to suggest include BTC in your analysis because most of the coins are dominated by Bitcoin so you need to set a position in a Bias position if you want to win in a trade you set or only trade on the coins that's not much affected by Bitcoin price fluctuates.
Another thing that gives you an advantage is if you know other traders where they place positions long or short reading the liquidation map and orderbook gives me advantage on where to entry and exit.

[logfiles]

Obviously, lack of knowledge. You can have $1M in capital and still blow off your account if you do not know a clear strategy on how to make profits over time. Profits should be looked at from a percentage gain perspective rather than from how much is in an account.

If you lack capital, then what is the point of trading?

[Rruchi man]

Which of this problem is more common among traders?.

Lack of knowledge is the first problem, before lack of capital follows as a problem. A newbie to trading does not have knowledge about trading at first and also does not have knowledge about the amount of capital required to become really profitable from trading. A newbie to trading may have the idea that the little capital they have in their possession would be enough to turn them into big millionaires, but it's not always the case.

It is not that it is impossible for a trader with little capital to be profitable, it will just require a very good trading strategy and a lot of patience. A new trader with a very good strategy can flip their portfolio from a very small deposit to a very huge profit with a very good strategy but does not always happen.

[mirakal]

Obviously, lack of knowledge. You can have $1M in capital and still blow off your account if you do not know a clear strategy on how to make profits over time. Profits should be looked at from a percentage gain perspective rather than from how much is in an account.

If you lack capital, then what is the point of trading?

Yes, I believe it’s more on the lack of knowledge that could hinder an aspiring trader to pursue his trading goal. Without gaining even the basics in trading, there’s no way that a trader will successfully work out his trades but most probably will suffer from consistent losses and mistakes acquired while in trading. Also, having lack of capital is another barrier when pursuing trading. You can’t start a trade unless you’re financially capable enough, that’s why a lot of poor traders have been quitting because they find it hard to seek funds for another trade once they have lost the first trade.

[tvplus006]

...What can you say about this two problems, how will you advice a trader that is suffering from any of this problems or how did you get out of the problem if you had suffered from having lack of capital or lack of knowledge. Which of this problem is more common among traders?.

These two problems are usually related. As a rule, a lot of newcomers come to the cryptocurrency market who dream of earning a million, but who absolutely do not have knowledge and initial capital. Accordingly, you must first earn the initial capital in real life, part of which is spent on training.

[Dr.Bitcoin_Strange]

What can you say about this two problems, how will you advice a trader that is suffering from any of this problems or how did you get out of the problem if you had suffered from having lack of capital or lack of knowledge. Which of this problem is more common among traders?.

People that are fully dependent on trading are the big boys or men traders; they have thousands of dollars or millions that they are trading with, and their one-time profit is usually huge, as is how significant their losses can be too. 

Still on Twitter, I also saw a tweet that someone was trading a meme coin and he invested more than a million dollars, but he got liquidated before the next morning, but if actually the trade had gone according to his predictions, it would have also become more than 2x or 3x what he invested. 

For a small trader or a starter, never borrow to start trading, get a job, from your salary invest only some of it into trading and while you are also trading, don't quit your job until trading have become a very reliable income source for you. 

[Zaguru12]

What can you say about this two problems, how will you advice a trader that is suffering from any of this problems or how did you get out of the problem if you had suffered from having lack of capital or lack of knowledge. Which of this problem is more common among traders?.

First of all both of this are essential part of trading but in terms of weighing through them I pick knowledge as the most important aspect to acquire before anything. My reason is when one has knowledge at hand they can easily get idea on what they need or how much they need to get before they can fully trade. This is also citing that after knowledge, that capital is very important aspect again but not to knowledge

[Wexnident]

You can use your capital to gain knowledge since I'm of the opinion that learning comes from losing,  but you can't use the knowledge you have if you don't have the capital to start investing in the first place, so I'd go with capital instead.  Knowledge also comes from real-life experience, or at least a part of it, so without any capital traders wouldn't even be able to start capitalizing on the knowledge that they have.

My opinion stems from the idea that the trader would actually learn how to trade while having his own money to trade with, but if said trader just willy-nilly trades then yea, no amount of capital would fill the gap about not knowing how to trade. They're both pretty important in the end though.

[adaseb]

It’s definitely lack of knowledge and not lack of capital. Especially when it comes to the crypto markets. You go to any futures exchange and you can have up to 100x leverage. So if you know what you are doing, even with $100 capital you can have $10,000 positions and you can easily double or triple your stack in a few trades. Lack of capital is not the problem.

It’s that people have no idea how to trade. It’s not easy. People have been doing it for decades and they still can’t make a profit. Especially if they want short term gains. Most of those gurus that you watch on YouTube, they just fake their videos and aren’t as successful as you think. Trading is extremely difficult and not for most people. 

[poodle63]

both thing you mentioned is the most crucial thing needed for trader to be honest, can't lack any one of them, a trader with good knowledge but lack of capital will only make peanuts from their trades, since lower capital means lower profit and leveraging isn't always the best idea there is.
meanwhile trader with lack of knowledge but many capital might pose risk of losing their money instead and become broke, its always the both things that complement each other to make for good profit.
can't have one of them lacking if you trying to make money here.
so those that lack knowledge need to learn first, try to read some of the good books about trading, knowing the market and some basic principles.
for those that lack money well you should save up some money first by finding some jobs first then venture into trading where there's sufficient capital.

[Adbitco]

Knowledge and capital are both essential because there are people who has the right knowledge but doesn't have the required capital to start up while there are people who actually has the capital but doesn't have the required knowledge to make profits from trading even though there are people who are using demo to trade and thinks that they can start making profit while they trade is extremely wrong because Demo can't be subjected to live trading because it is more risky than the Demo account.

To me I will say as trader you would need all these things before you can be able to trade and make profit you can't skip any of this or chose the other and leave the other, okay let's imagine those who knows to trade they went ahead to borrow money and maybe they weren't successful with their trades automatically they are subjected to debt and most look for alternative to clear up their debt.

As a newbie trader before you start putting much interest in trading it's advisable to have other running business be it physical or online because trading is actually risky and you could lose what you don't expect in every single minute or moment, if you are that type who solely depends on trading to earn a living then it could be very hard to start up and cope with life.

Therefore what's required is for people to go
for knowledge first and gained the required skill before sourcing for fund to fund their account after which they could start with little maybe as time goes they would like to increase their equity to enable them also increase their trading capacity.

[God bless u]

This question came to my FYP on X and I could relate because at a time in my life it was the lack of knowledge of not knowing how to trade that was holding me back from making profit until I started learning how to trade from my mentor and I can make some profits when I get my reading of the market right. I also had the challenge of getting capital that I can use for trading because I was depending on my trading profits until I got to know that trading needs a trader to have other jobs because you can not only depend on trading profits when you do not know how to trade excellently. Other traders are having difficulties in trading because they do not have the right information that they need to become good traders or because they lack the capitals.

What can you say about this two problems, how will you advice a trader that is suffering from any of this problems or how did you get out of the problem if you had suffered from having lack of capital or lack of knowledge. Which of this problem is more common among traders?.

I think there is a mixture of both because we can't choose one. Knowledge is the key to the door of success but capital is the mold that is used to make that key. Be aware that too much knowledge is harmful and too much capital is also very harmful for your health and asset's also.

You have to learn and gain knowledge and then invest tha capital so that you can gain profits more than losses. Both are very important in my opinion.

[Strongkored]

Both are obstacles to making a profit.
No matter how much capital is used without good knowledge or skills, traders will only suffer losses because their trading is the result of decisions that are not based on analysis, it could be due to feeling or hype just to see what coins are trending or completely dependent on signals, because we see how Traders consider signals as a way to start trading on that day and are sure of getting a profit and believe that large capital will give them bigger profits, even an experienced trader may still suffer losses.

[AnonBitCoiner]

Knowledge and money both are essential for taking profit from trading but if you have knowledge but have no money then you can use this knowledge to help others and also work as an influencer. Once you get knowledge about trading then you can save the amount anytime so I think knowledge occupies a more beneficial place than money.

If you don't know about trading then having money cannot give you profit but if you utilise that money without giving importance to knowledge first then you will get rid of all that amount which has been used as a source of earning.

[KingsDen]

There is a saying that it is better that one prepares and wait for opportunity, than for an opportunity to come and meet one unprepared. In this context, preparing and waiting for opportunity is learning how to trade and wait for trading funds. This should be more profitable than not knowing how to trade and eventually have funds in your custody. There's no doubt that you will misuse the fund.

In a nutshell, knowing how to trade and having trading funds augments each other for there to be success. But it is encouraged to have the knowledge first before sourcing for the funds.

[Bitcoin Smith]

I would like to draw a line here for profits because $1 is profit while making $1000 also profit as well but which one you will call successful? Definitely the bigger amount right?

Capital gives you the head start that will be really helpful to make decent profits with low risky trading strategies and all it needs just basic  knowledge about trading on the other hands one who know every nook and corner not having capital like atleast $500 that will hold them from making money in trading.