One Big Trade vs Multiple Trades, Which Is Better?

[YOSHIE]

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?

In my experience in trading on the crypto market, large transactions and frequent transactions certainly have differences in placing trading profits, but in my view it all depends on the trading choices we make, because there are several trading methods that can be used, as well as the capital used in trading.

In my opinion, large transactions are suitable and efficient for the swing trading method, the aim is to minimize risk, if at one time there is a change in trend, while making frequent transactions is suitable for use when the market is stable and the aim is to take small profitsjust, while large transactions are of course to make big profits with a single cost, so basically it depends on the trading method used.

[Nalain420]

One big trade is like risking all our capital is more risky if the market drops we lose everything. Without looking at risk tolerance, cashflow we usually make wrong decisions. And the fear of losing all our capital really affect our thinking and sometimes we sell in panic even in loss. Whereas multiple trades is like spreading risk to different trades it is much logical and safer. It helps us to keep our momentum of emotions because loss in one trade doesn't wipe all our capital. And it also requires patience and discipline. Not following the trend and hype can save us keeping the eyes on multiple trade is difficult but safe as compare to one big trade.

[LastKiss]

One big trade is like risking all our capital is more risky if the market drops we lose everything. Without looking at risk tolerance, cashflow we usually make wrong decisions. And the fear of losing all our capital really affect our thinking and sometimes we sell in panic even in loss. Whereas multiple trades is like spreading risk to different trades it is much logical and safer. It helps us to keep our momentum of emotions because loss in one trade doesn't wipe all our capital. And it also requires patience and discipline. Not following the trend and hype can save us keeping the eyes on multiple trade is difficult but safe as compare to one big trade.

If we're trading futures then it makes sense not to use all our capital because we're more exposed to getting wrecked especially when we're not using a stop loss in the futures market. But if we're only trading spot then using more capital makes sense since we want decent profit which requires more capital to use. Since what OP said is that the trader will wait for the best opportunity to trade, then the trader won't force a trade when the chance of winning is small.

To avoid losing everything in a single trade just trade Bitcoin and avoid trading altcoins because the risk of losing everything is much higher with altcoins than with Bitcoin. Although there's still risk, the chance of losing everything is smaller with Bitcoin. Personally, I do Option 1 when I trade on the spot market but when I trade in the futures market, I use Option 2, it really depends on my end.

[michellee]

One big trade is like risking all our capital is more risky if the market drops we lose everything. Without looking at risk tolerance, cashflow we usually make wrong decisions. And the fear of losing all our capital really affect our thinking and sometimes we sell in panic even in loss. Whereas multiple trades is like spreading risk to different trades it is much logical and safer. It helps us to keep our momentum of emotions because loss in one trade doesn't wipe all our capital. And it also requires patience and discipline. Not following the trend and hype can save us keeping the eyes on multiple trade is difficult but safe as compare to one big trade.

Right so when we lost, our capital will lower fast than we expecting and that can make us regret. But some traders will takes the risk because they are tempting of big wins so they place one big trade.

Once I made a mistake using one big trade because the market might moves according my analysis but suddenly the direction change and makes me lost. But the lost was not too big as I use stop loss feature but still that is lost for me.

Panic will be there when the market changed the direction and we can't think clear. Soo it is better to split the trade into some small parts especially if we are afraid with the changing of the market.

[Asiska02]

I am more of the person that trades multiple times a month and not just trade once in a month. Both of the two styles of trading a trader can decide to go for are both good. One just needs you to take more calculated risk and be profitable in the long run, while the other needs you to take few risk and hope and wait longer to hit TP.

I am of the second type of trader you mentioned but I actually needs to be the first one because there you get a clearer set up, and trading on the higher time frame gives a more possibility of winning trades. The problem here is that you need a big capital, without it you won’t be able to manage trading once or twice in a month.