Should I wait to have a huge capital before I start trading?

[Synchronice]

Hello Bitcoin talk community!
The above question is what many people who are new to trading hear, I've also been advised to start with a large sum of money which I couldn't afford then .
But looking at it now , is it really advisable to start trading with a lot f money? Or just start with whatever you can afford?

There are two options in trading:
1. Trade with small capital and take big risks, i.e. try to significantly increase your profit, like 20x, 50x and higher.
2. Trade with big capital and take small risks, i.e. aim for monthly 3% or something similar. For example, if you have a million dollars, 3% monthly is 30K USD.

I suggest you to never start trading with big capital when you are a newbie. It's basically going full-force in a game that you barely know and that's never a good idea because there are very experienced players in the game, so you are almost guaranteed to lose everything you have. So, start with a small capital and increase it over time, as your skills, knowledge and experience improve.

[Dewi Aries]

If you are a beginner in the sense that you just want to enter the world of trading, then I would say and suggest that it is better to start everything with a small capital, just think of it as capital that will be sacrificed in the learning and adaptation stage to the market, the reason I think is clear that if you start everything with a large capital then it is too risky and most likely you will only lose all that large capital in a short period of time, and that is very possible for a trader who does not have much knowledge about what to do and avoid in certain situations when you are in the market.

Basically trading is a skill activity which means that the opportunity for profit will always depend on how much knowledge you have, and maybe I will also say that using large amounts of capital should only be done when you are quite proficient or when you are able to generate consistent profits, the only thing that will cause a big problem when a beginner dares to jump in with large capital is because besides they do not have much knowledge, they also certainly do not have good risk management such as not having the ability to control themselves and emotions.

[tvplus006]

...1. Trade with small capital and take big risks, i.e. try to significantly increase your profit, like 20x, 50x and higher.

So, start with a small capital and increase it over time, as your skills, knowledge and experience improve.

Thus, if the OP follows your advice, he is guaranteed to lose his deposit. Because everyone who knows a little bit about trading knows that high risks turn trading into a casino, and you become a hostage to luck, which can turn away from you.

[crwth]

You need to start in some way, shape, or form because it is where you learn. If you don't do it, I think it would be great if you do it with actual actions. There should be a strategy when you trade, and ensure you follow the rules you studied.

You don’t need money, but you could do percentage-based trading, so you could adjust your strategy accordingly. What I mean is you need to trade in terms of your capital and in percentage, so maybe 2% per trade or something like that.

[Dzwaafu11]

The above question is what many people who are new to trading hear, I've also been advised to start with a large sum of money which I couldn't afford then .
But looking at it now , is it really advisable to start trading with a lot f money? Or just start with whatever you can afford?

I think you are misunderstanding the thing. You are a newcomer and also a newbie trader. Don’t use any big amount of money in trading when you are still learning trading, because obviously I can see that someone told you that for you to be able to gain from trading you need a huge amount of money to start that, which is a lie.

Everything starts small and goes up, but if you, as a trader, want to be rich quickly in trading, then you cannot think of using a small amount of money to trade because you want to get a huge return from the trading. However, trading is very risky, and to wipe all the money you put in a very short period of time, the best thing for you is to use the amount you can afford to lose in trading. Don’t follow what anyone will say to you; it’s your hard-earned money. Make your own decision.

[coolcoinz]

This is a common mistake that people do. They think they need a lot of money to get high profit, which is true, but if getting to that level takes you a lot of time, then it's better to start with what you have.

I'll give you an example. Let's say you have $1k available to invest and you make $1k a month, but with bills to pay you can maybe save up $200. Making another $1k will take you 5 months. In that 5 months you could be making 10% a month from your $1k, getting to 1.5 + saving up another $1k. You could be getting +50% more in 5 months if you only did something with your money instead of just waiting to start with $2k because someone told you to.

[junder]

This is a common mistake that people do. They think they need a lot of money to get high profit, which is true, but if getting to that level takes you a lot of time, then it's better to start with what you have.

I'll give you an example. Let's say you have $1k available to invest and you make $1k a month, but with bills to pay you can maybe save up $200. Making another $1k will take you 5 months. In that 5 months you could be making 10% a month from your $1k, getting to 1.5 + saving up another $1k. You could be getting +50% more in 5 months if you only did something with your money instead of just waiting to start with $2k because someone told you to.

I agree with what you said, sometimes many people do trading just because they see the positive side such as easy to get profit, of course this is not true because in any case it takes skill to do it such as good self-control whether it is attitude or behavior in doing it. If you are new to trading, you should start with a capital that is not too big, because of course there is a risk so don't be reckless in making decisions.

In addition, if we are going to do trading, we should be able to consider everything carefully, such as the example you gave, it can be understood and can be used as a benchmark for us when we are going to trade.

[Webetcoins]

You need to start in some way, shape, or form because it is where you learn. If you don't do it, I think it would be great if you do it with actual actions. There should be a strategy when you trade, and ensure you follow the rules you studied.

You don’t need money, but you could do percentage-based trading, so you could adjust your strategy accordingly. What I mean is you need to trade in terms of your capital and in percentage, so maybe 2% per trade or something like that.

This is very true, if you want to become a trader then you need to start somehow, sure it may not be a great start at all times, but as long as you give it a start than what type of capital you have do not matter. I know people who started with just few dollars, and they traded DEX and slowly but surely made some money.

Trading isn't always just "go buy something and sell after a few hours of waiting", that is one type of trading but not the whole thing. We need people to realize that you could make trades based on volatility and volume and liquidity, which means you can take advantage of some arbitrage type of stuff at DEX, not always, and not directly arbitrage itself but more like just using LP to your advantage for quick return.

[Wind_FURY]

...1. Trade with small capital and take big risks, i.e. try to significantly increase your profit, like 20x, 50x and higher.

So, start with a small capital and increase it over time, as your skills, knowledge and experience improve.

Thus, if the OP follows your advice, he is guaranteed to lose his deposit. Because everyone who knows a little bit about trading knows that high risks turn trading into a casino, and you become a hostage to luck, which can turn away from you.

That's why the advice, "If you're going to lose with a probability of close to 100%, then try to make a small mistake by losing small amount of capital rather than making a big one by losing your life-savings".

There's three possible "consequences" for OP's "adventure.

- He/she actually becomes a good trader after a few losses
- He/she loses all of his/her life-savings
- He/she becomes a HODLer

  

[fikrett]

...1. Trade with small capital and take big risks, i.e. try to significantly increase your profit, like 20x, 50x and higher.

So, start with a small capital and increase it over time, as your skills, knowledge and experience improve.

Thus, if the OP follows your advice, he is guaranteed to lose his deposit. Because everyone who knows a little bit about trading knows that high risks turn trading into a casino, and you become a hostage to luck, which can turn away from you.

That why the advice, "If you're going to lose with a probability of close to 100%, then try to make a small mistake by losing small amount of capital rather than making a big one by losing your life-savings".

There's three possible "consequences" for OP's "adventure.

- He/she actually becomes a good trader after a few losses
- He/she loses all of his/her life-savings
- He/she becomes a HODLer

 

Hopefully, OP will succeed with what was given here and by you too.
It's always wise to use the funds you are okay to spend. Even if you want to make them into something bigger, things don't go the way you need to sometimes. With no amount of analysis changing that.

[FortuneFollower]

You need to start in some way, shape, or form because it is where you learn. If you don't do it, I think it would be great if you do it with actual actions. There should be a strategy when you trade, and ensure you follow the rules you studied.

You don’t need money, but you could do percentage-based trading, so you could adjust your strategy accordingly. What I mean is you need to trade in terms of your capital and in percentage, so maybe 2% per trade or something like that.

This is very true, if you want to become a trader then you need to start somehow, sure it may not be a great start at all times, but as long as you give it a start than what type of capital you have do not matter. I know people who started with just few dollars, and they traded DEX and slowly but surely made some money.

Trading isn't always just "go buy something and sell after a few hours of waiting", that is one type of trading but not the whole thing. We need people to realize that you could make trades based on volatility and volume and liquidity, which means you can take advantage of some arbitrage type of stuff at DEX, not always, and not directly arbitrage itself but more like just using LP to your advantage for quick return.

Some platforms provide something that others don't via the contents, functions, etc.
And, you are right - a person should start doing it for real eventually, that's how experience builds up with time.
But with the amount of money that is okay to play around with, responsibly.

[knowngunman]

Hello Bitcoin talk community!
The above question is what many people who are new to trading hear, I've also been advised to start with a large sum of money which I couldn't afford then .
But looking at it now , is it really advisable to start trading with a lot f money? Or just start with whatever you can afford?

You can start with huge amount if you want to send yourself back to trench or fast forward your poverty.

In fact, as a beginner in trading you don't need real money to start trading. You ought to start with demo where they provide you with fictional coins to trade in order to examine your performance. The more you improve with demo trading, the more you learn how to manage real asset when you start trading.

The amount you trade depends on how financially buoyant and how well you can tolerate risk. For starters, it's advisable to start with little capital to see the progress. Regardless of the progress, trade what you can afford to lose.

[FortuneFollower]

Hello Bitcoin talk community!
The above question is what many people who are new to trading hear, I've also been advised to start with a large sum of money which I couldn't afford then .
But looking at it now , is it really advisable to start trading with a lot f money? Or just start with whatever you can afford?

You can start with huge amount if you want to send yourself back to trench or fast forward your poverty.

In fact, as a beginner in trading you don't need real money to start trading. You ought to start with demo where they provide you with fictional coins to trade in order to examine your performance. The more you improve with demo trading, the more you learn how to manage real asset when you start trading.

The amount you trade depends on how financially buoyant and how well you can tolerate risk. For starters, it's advisable to start with little capital to see the progress. Regardless of the progress, trade what you can afford to lose.

It's theory => demo => real practice afterward, with little money at stake.
Then, at least a person will be ready for some situations on the market and learn from them.  

[EarnOnVictor]

The above question is what many people who are new to trading hear, I've also been advised to start with a large sum of money which I couldn't afford then .
But looking at it now , is it really advisable to start trading with a lot f money? Or just start with whatever you can afford?

It's a misconception that you must have a lot of money before you can start trading, you can trade with the amount you have now that you can also afford to lose. Fine, trading is better with a higher amount because the more your money, the more your gains, but have you also thought about the losses? The more the amount, the more your losses as well. It's better for a newbie to start with a small amount of money so that you can build it higher or at least use it to train to gain more experience even if you lose it instead of believing you can just start with a big amount, the risk is too high on every side.

[Mahanton]

Hello Bitcoin talk community!
The above question is what many people who are new to trading hear, I've also been advised to start with a large sum of money which I couldn't afford then .
But looking at it now , is it really advisable to start trading with a lot f money? Or just start with whatever you can afford?

You can start with huge amount if you want to send yourself back to trench or fast forward your poverty.

In fact, as a beginner in trading you don't need real money to start trading. You ought to start with demo where they provide you with fictional coins to trade in order to examine your performance. The more you improve with demo trading, the more you learn how to manage real asset when you start trading.

The amount you trade depends on how financially buoyant and how well you can tolerate risk. For starters, it's advisable to start with little capital to see the progress. Regardless of the progress, trade what you can afford to lose.

It's theory => demo => real practice afterward, with little money at stake.
Then, at least a person will be ready for some situations on the market and learn from them.  

Demo -> Small capital trade -> Trial and error -> Create risks management plans -> Lower Drawdown -> Increase capital via compounded profits -> Set fix % gain on a specific period.

These would be the route that it would really be that doing when you are really just that starting up but of course you are the ones will really be able to find out or formulate on what or which path you would really be taking into. As long you would really be able to make yourself that a profitable trader then stick into it. This isnt a sprint but rather a marathon on which to those traders who do able to sustain and survive market volatility are the ones who will really be able to survive. Dont make yourself in a rush because this is where usually people do become impulsive and resulting into those bad actions on which it shouldnt be supposed to happen.

Starting up with small capital is ideal because you are really just that starting up and on the moment or time that you've seen yourself already progressing then this is the moment or time that you do consider out on increasing your capital if you do have plans on having that bigger profit but of course you should really be that still careful on the moment that you would really be doing that because its never been that simple on having that kind of path to take.

[taufik123]

-snip-
It's better for a newbie to start with a small amount of money so that you can build it higher or at least use it to train to gain more experience even if you lose it instead of believing you can just start with a big amount, the risk is too high on every side.

That's what I did when I first traded, using just a little money to try out how crypto trading worked.
It's not about how much money is spent on trading, but how to learn the science of good and correct trading.

With large capital, it may be possible to make a big profit when the price rises, but the risk will also be greater.
But if you start with a small capital and it continues to grow, this will be very, and certainly the trading science learned will be successful.

Now the important thing is not about quantity, but quality so that no matter how much capital is done,
if the quality or knowledge of trading is done well and correctly, it will bring greater profits.

[Synchronice]

...1. Trade with small capital and take big risks, i.e. try to significantly increase your profit, like 20x, 50x and higher.

So, start with a small capital and increase it over time, as your skills, knowledge and experience improve.

Thus, if the OP follows your advice, he is guaranteed to lose his deposit. Because everyone who knows a little bit about trading knows that high risks turn trading into a casino, and you become a hostage to luck, which can turn away from you.

Why do you think so? I said that if you want to earn money in trading, you either have to risk small capital with possibly high yield coins or you need a big capital and aim low % profit in trading. I don't suggest him to follow any of them, I simply tell him that these two are option to actually have a chance to earn money. If you have a low capital and aim to generate 1-2% here and there, months and years will pass and you'll still have bucks in your pocket.

I don't understand why you think that OP is going to lose by following my advice. My advice in my post was to start with small capital and increase it over time if he sees that he is doing well in trading. To make it clever, I'll add that when I say start with small capital in this case, I mean to aim for safe trading instead of risky. He won't make money at first but if he improves his skills & experience and odds more capital accordingly, he might succeed.

[fullhdpixel]

trading requires skill as well as luck. The first goal of every new trader should be to learn and gain experience in trading, many traders want to get rich quick by trading, but they need to realize that trading is not as easy as they think. The first mistake that many new traders make is to trade based on assumptions, they first do demo trading for a few days and think that trading is very simple, it is very easy to make money from it. And with some simple knowledge they start trading with money, and then they lose their money. So every beginner should focus on learning and gaining experience first. And with little common sense we should never trade using real money in trading. Every next step in trading is unpredictable, so we always have to be careful.

Yeah both comes in package but even on some things that doesn't requires a luck, we also need a skill on them. Even not for a new trader, experience can still matter but just like a game, the experience that they can gain is getting lesser or it is now difficult for them to earn it. Trading is instant, so we can't erase the fact that someone sees it as a get-rich-quick scheme. It's normal for newbies to think of it but don't worry because they will still realized later on that they are wrong. Those who use demo trading is better than those who didn't even though they still have another mistake there. It's not that it was easy to make money in demo trading but it is just that we have lots of capital here, so we can always turn the tide and then we have no fear here to lose the virtual money.

There will always be times that you will now trade with a real money. It is inevitable and we shouldn't be scared of losing it. Using small amount does help too to have a courage and confidence and then to regret less. There must be a time that the market is easier to predict and what about when we cashed out our profits for example? That is still considered as a step or a "next step" and that is predictable as well.

[Cookdata]

Hello Bitcoin talk community!
The above question is what many people who are new to trading hear, I've also been advised to start with a large sum of money which I couldn't afford then .
But looking at it now , is it really advisable to start trading with a lot f money? Or just start with whatever you can afford?

The person that gave you the advice with large sum of money is wrong. I think you should ask him again what he does in crypto to make money. I have heard many of this people when friends ask each other to teach them how to make money from crypto and they tell them they are into trading but what they do might airdrop but to defend their self from further disturb, they give excuses of large capital to start just to discourage them. I hope this is not the same story.

Anyways, you don't need large funds to start trading neither you need small fund. What you need is understanding how to trade. If you know how to trade, I think you can now discuss about the capital. Large or small can help you trade but most cex don't give you open order << $10 and you need to know that your capital determines what you earn unless you are doing margin trading or futures where you can lend fund or leverage to increase your capitals but it comes with cost of liquidation, be cautious.

[tvplus006]

I don't suggest him to follow any of them, I simply tell him that these two are option to actually have a chance to earn money...

There are actually many more ways to make money, but I would not consider the high-risk trading method you are offering to be worth attention. Similarly, I would rule out a possible way to make money, like robbing a bank, by limiting myself to the Powerball lottery.