One Big Trade vs Multiple Trades, Which Is Better?

[akamit]

I remember Dariloff (a very experienced trader) expressing a very sensible thought on our forum in 2019: "To get rich and live comfortably, you only need to make two or three successful trades (in your entire life)." ....................... Besides, what's easier: finding one profitable trade or 26 profitable trades? The answer, in my opinion, is obvious. 🧑‍🎓

The logic makes sense in theory but it assumes you can actually identify those 2-3 life changing trades before they happen, which is the hard part nobody talks about. In hindsight every big winner looks obvious. Living through it is a different story.

I get the point though. Most people overtrade and grind themselves down emotionally and financially chasing setups that aren't really there. Quality over quantity is genuinely good advice, just harder to execute than it sounds.

[LogitechMouse]

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Which person would you rather be, and why? Please give your own reasons, not the ones already mentioned above. Share from your personal experience.

Neither, and it's because it all depends on the outcome of the trades of both traders.

We can say that Person 1 is only doing 2 trades per month, he believes that it's the "perfect opportunity", an A+ setup for him, but in the end, he loses money. For me, doing 2 trades on a month only, and losing on both of them could affect me negatively. I mean I could put enter more trades, more opportunities, and make up more money. Trading only 2 trades per month for me isn't the one that I am.

As for Person 2, 10-25 trades per month is something like 1 per day on average, and for me, that's a better one. I know that not all the time, we are seeing setups, but all have different systems that we are following, and we have different strategies that we are using, and maybe for Person 2, his system revolves around entering 1 trade per day. More trades = more opportunities = more chances of profit, but only if he finds the good set up.

Well, if I will be picking with those 2, I'll pick the 2nd one. That's more of a day trader to swing trader type of trader, and that's better than a close-to-be a position trader where it takes longer to make money. At the end of the day though, you can be either of the 2, but it will depends on how profitable you are on both strategies.

[cryptoaddictchie]

Which person would you rather be, and why? Please give your own reasons, not the ones already mentioned above. Share from your personal experience.

I think Person 1 will be my choice. Id rather go with a few option to make a very good assesment of those trades. Will have a bigger allocation of funds on these trades and make some good profits on it. Id prefer less trades than a lot of different open trade. I know the saying spread your eggs in many basket but that means I can get to focus on these two trades even its only 2 trades per month as long as those position gaining some good one. Plus higher capital the higher the earnings. When it comes to lose ofcourse thats part of the risk Im willing to take.

[jcojci]

Being person 2 as I have more chances to make a profit and not just trading one time in a month. I avoids using big funds to trade as no guarantee if we may profit or not in trading.

With placing multiple trades in a month, I can choosing the potential coins, research and finding the coin. I can spread the risks to multiple trades as I don't use much budget to trade.

But whether you places 2 or multiple trades in a month, you must have skills to profit and having skills helps you to research and analyze finding the coin.

I use the second and although my profit not big, I can increasing the profit timely.

[Rruchi man]

You are only talking about swing traders versus day traders.

I was just about to say this exactly that the reference the OP is making is just between swing trading and day trading because it is only swing traders that place fewer trades in the month than day traders who are often looking out for a short opportunity to make the leanest profit from.

Swing trading is better than day trading. They use lower risks to trade with low leverage, unlike day traders that are always feeling like they have to earn money from day trading daily.

You cannot say so exactly because everybody has a preference depending on risk appetite. Day trading may involve more risk, but there are traders who are skilled enough for it.

[Oshosondy]

Swing trading is better than day trading. They use lower risks to trade with low leverage, unlike day traders that are always feeling like they have to earn money from day trading daily.

You cannot say so exactly because everybody has a preference depending on risk appetite. Day trading may involve more risk, but there are traders who are skilled enough for it.

Everything I am saying is from experience. Have you seen day traders that make money and you see the money in his life? Like using the money to buy a car or to build a house? I have seen many day traders before, if not because of their job, it will not be easy. Also trading is making them lose part of their jobs wages or salaries.

There is one thing about day trading which is lack of patience, but swing traders still have some patience. Lack of patience is the reason almost all day traders are losen.

[Smartprofit]

I remember Dariloff (a very experienced trader) expressing a very sensible thought on our forum in 2019: "To get rich and live comfortably, you only need to make two or three successful trades (in your entire life)."

If you're unable to find profitable trades at all, then 26 trades per month will ruin you.  Besides, what's easier: finding one profitable trade or 26 profitable trades? The answer, in my opinion, is obvious. 🧑‍🎓

In our entire life? Now that is something I would not believe. How can we make such trades? Although I have seen some people talking about this too, I thought they were just kidding or trying to look cool by saying something out of the box, because no one usually gives such suggestions that we should trade only two or three times in our entire life and that those trades should be perfect.

What if our two or three perfect trades turn into losing ones? Of course, we would not stop. But if the idea is to stop after one or two trades, if we are Person 1, then that makes sense and will save us from extra trouble. But I am one of those who are impatient, and I would take trades in the same month to win back the losses.

When I first bought my first cryptocurrency by participating in an ICO (it was the EOS token, and I had to buy Ethereum first), I increased my initial capital sixfold in three days. 🙋

Of course, I was an inexperienced newbie back then and wasn't able to lock in my profits. I wanted to, but due to my inexperience, I ran into technical difficulties. I didn't know how to trade properly on a cryptocurrency exchange (and Bitfinex, where this token was traded, was quite complex technically, with a non-intuitive interface). So I decided to hold off on locking in profits. In fact, given the circumstances, this was a wise move. As a result, I had to watch my deposit rapidly depreciate. However, I realized that there was a lot of money to be made in the crypto industry.

However, this understanding didn't save me from significant losses... In fact, my biggest losses were caused by a small number of losing trades.  For some reason, I imagined myself as a super trader.😃

I also remember the moment when the price of the EOS token dropped to 0.50 cents. I was walking along the beach at the time, and suddenly a thought occurred to me: "Smartprofit, the EOS token can grow to $30! If you buy it now with all your money, your deposit will increase 60-fold. You'll achieve this amazing result with just two trades: one buy and one sell."

As a result, the EOS token didn't rise to $30, but only to $21 (after 9 months). I managed to sell it at that price. However, I bought it not for 0.50 cents, but for $6. And my deposit was very small in monetary terms... But what if it had been larger, and I had been a more cool-headed and intelligent person?

No, I still believe that a small number of trades can make a trader rich.  It's pretty much the same in life. A small number of events can dramatically change our lives (for better or for worse).🧖

[bangjoe]

There are two kinds of traders. Which one would you rather be, and why do you think that style of trading is better than the other?

Person 1: Places only 2 trades per month and risks all of his capital on just 1 or 2 trades because he believes that, by finding the perfect opportunity, he can make the same amount of money that someone else might make by placing multiple trades in a month. He believes it is better to take a big risk only once or twice rather than risk money on multiple trades. He also thinks that people who trade more often are not skilled traders, and are just trying again and again until they hit the jackpot like gamblers.

Person 2: Places multiple trades in a month. He has the same capital as Person 1, but he have more setups. Let's say he places 10 to 25 trades per month. He believes it is better to spread risk across multiple trades rather than risking everything at once. He thinks that if he wins 10 trades out of 20, he could still end up profitable.

Which person would you rather be, and why? Please give your own reasons, not the ones already mentioned above. Share from your personal experience.

The first option is the best option that can be taken if you have very large funds, I pay attention to institutional traders and VCs who trade they do not do a lot of trading, but instead focus more on large trades with large capital after having the potential that can be confirmed, some even trade once every 4 months and even once a year, they always confirm the potential first before trading, because for them 10% is enough for their annual trading.

Option two can be prioritized, the difference is that having too many trades is very dizzying and you will not have enough time to confirm the potential, I prefer one moment one shot, since this year began I have prioritized this strategy, trading with a larger volume even though the target price increase is not more than 10% is more than enough in one trade.

[UmerIdrees]

There are two kinds of traders. Which one would you rather be, and why do you think that style of trading is better than the other?

Person 1: Places only 2 trades per month and risks all of his capital on just 1 or 2 trades because he believes that, by finding the perfect opportunity, he can make the same amount of money that someone else might make by placing multiple trades in a month. He believes it is better to take a big risk only once or twice rather than risk money on multiple trades. He also thinks that people who trade more often are not skilled traders, and are just trying again and again until they hit the jackpot like gamblers.

Person 2: Places multiple trades in a month. He has the same capital as Person 1, but he have more setups. Let's say he places 10 to 25 trades per month. He believes it is better to spread risk across multiple trades rather than risking everything at once. He thinks that if he wins 10 trades out of 20, he could still end up profitable.

Which person would you rather be, and why? Please give your own reasons, not the ones already mentioned above. Share from your personal experience.

Well, both the scenarios aren't perfect, and Person 1 and Person 2 can both fail or succeed in trading, but I will prefer to be a trader 2 who places multiple trades in a month and risks less capital per trade. If you risks everything in a single trade that is a do or die situation, where you can lose everything or have a big profit but i would prefer to take such a risk.

If you lose money, all your capital is gone, and it is very difficult to recover from such a situation.

[Cgrexp]

Swing trading is better than day trading. They use lower risks to trade with low leverage, unlike day traders that are always feeling like they have to earn money from day trading daily.

You cannot say so exactly because everybody has a preference depending on risk appetite. Day trading may involve more risk, but there are traders who are skilled enough for it.

Everything I am saying is from experience. Have you seen day traders that make money and you see the money in his life? Like using the money to buy a car or to build a house? I have seen many day traders before, if not because of their job, it will not be easy. Also trading is making them lose part of their jobs wages or salaries.

There is one thing about day trading which is lack of patience, but swing traders still have some patience. Lack of patience is the reason almost all day traders are losen.

There may be some who mainly day trade and get their cars, houses and freedom from it, but their number is very small. Because if everyone was profitable by day trading, then everyone would be more interested in it. Even if someone profits here, most people face losses. And I think it is a very stressful and high-risk job where a person has to analyze, plan, manage and make decisions mentally while observing the market. And you have to be very patient to do such work. But if someone wants to do day trading along with a job, I think it will be full of stress because after working all day and sitting down to observe the market again, it is very tiring and decisions cannot be made hastily. If there is a thought of profit, then decisions must be made by observing. So decisions have to be made very quickly in day trading and it is difficult to make profits without experience and skills.

[terrific]

There are two kinds of traders. Which one would you rather be, and why do you think that style of trading is better than the other?

Person 1: Places only 2 trades per month and risks all of his capital on just 1 or 2 trades because he believes that, by finding the perfect opportunity, he can make the same amount of money that someone else might make by placing multiple trades in a month. He believes it is better to take a big risk only once or twice rather than risk money on multiple trades. He also thinks that people who trade more often are not skilled traders, and are just trying again and again until they hit the jackpot like gamblers.

Person 2: Places multiple trades in a month. He has the same capital as Person 1, but he have more setups. Let's say he places 10 to 25 trades per month. He believes it is better to spread risk across multiple trades rather than risking everything at once. He thinks that if he wins 10 trades out of 20, he could still end up profitable.

Which person would you rather be, and why? Please give your own reasons, not the ones already mentioned above. Share from your personal experience.

It's hard to get into multiple trades and when we say multiple and it's up to 25, that's already a lot for me.
Maybe I'll be the person 1 who only trades few times in a month or even maybe a week or bi-weekly.
As long as that's consistent and that put ups less pressure for me compared to the person 2 who has to manage a lot of his trades and make them win.

[Alphakilo]

There are two kinds of traders. Which one would you rather be, and why do you think that style of trading is better than the other?

Person 1: Places only 2 trades per month and risks all of his capital on just 1 or 2 trades because he believes that, by finding the perfect opportunity, he can make the same amount of money that someone else might make by placing multiple trades in a month. He believes it is better to take a big risk only once or twice rather than risk money on multiple trades. He also thinks that people who trade more often are not skilled traders, and are just trying again and again until they hit the jackpot like gamblers.

Person 2: Places multiple trades in a month. He has the same capital as Person 1, but he have more setups. Let's say he places 10 to 25 trades per month. He believes it is better to spread risk across multiple trades rather than risking everything at once. He thinks that if he wins 10 trades out of 20, he could still end up profitable.

Which person would you rather be, and why? Please give your own reasons, not the ones already mentioned above. Share from your personal experience.

It's hard to get into multiple trades and when we say multiple and it's up to 25, that's already a lot for me.
Maybe I'll be the person 1 who only trades few times in a month or even maybe a week or bi-weekly.
As long as that's consistent and that put ups less pressure for me compared to the person 2 who has to manage a lot of his trades and make them win.

Perhaps OP exaggerated the figures of how much trades a trader can quantify as multiple, because I believe many of us do trade here and it is more than twice in a month but not up to 25 trades as put, because that would mean we do it as a profession and sit around all day staring at the screen to not miss details of analytics of the market movement and trends.

I do trade multiple trades and consider it much better because it rhymes with not putting all your eggs in one basket, mostly as it concerns investment of this sort and it pays out much better than one big trade where I put in alot of money and hope to not get liquidated overnight due to market volatility.