I was asked if our balance determines what you profit from trading?

[DPHOR]

I would want to know from others here if truly their account balance determines what they would profit as a trader.. but then I have to think twice and said that our balance is not a product of our profit rather this is a factor of our in depth knowledge and understanding towards trading. You can have a sizable account balance but if you don't know what you are doing you would still end up losing them all so you should be able to know what you are doing.

For you to profits as a trader you must learn to work on your emotions, which includes risk management and knowing the right time to enter trade and when not to enter trade. In fact you must also understand your candle reading, which includes technical and fundamental analysis in other to understand how the market is moving and this is not all, you must also learn to control your greed index otherwise you could lose after some good profits from the previous trades. However, having a sizable account balance doesn't really attributes to how successful you could become if you don't have the right knowledge of trading.

[Oshosondy]

You can have a sizable account balance but if you don't know what you are doing you would still end up losing them all so you should be able to know what you are doing.

Absolutely.

For you to profits as a trader you must learn to work on your emotions, which includes risk management and knowing the right time to enter trade and when not to enter trade.

Yes, but it is not easy at all. There can come the right time but the trade not in favour of the trader. Not all the time though, a trader supposed to have at least 70% accuracy and also know how to still try to make profits.

But the whales know what to do to take money from those that are using small amount to trade with leverage and thinking of stop loss that will not work for them at last.

Trade with the amount of money that you can afford to lose.
Learn patience.
Make money and gradually increase the money.
If a trader is not making money, he should continue to trade with little amount of money to learn more.

[Odohu]

The account balance only create the leverage that enable us use bigger lot sizes. It can translate to more profits if the trader is competent to select the right direction of the market but if reverse is the case, it will lead to greater losses. Therefore, the profits a trader will make from whatever account balance that is available depends mainly on his skillset an not just the account balance. This is because big account balances also get blown by incompetent and emotional traders.

[Wiwo]

From my personal experience in trading, i trading and profit better when i have small balance.

Let me explain what I experience in multiple occasions with trading, sometimes I start off my trading bankroll of $50-$70, and I make profits more and the moment I turn my balance to around $250, it becomes more risky if I don't withdraw my profit back to my normal weekly balance benchmark.

I don't know, but I think whenever the balance is becoming huge, you will take more risk and try to leverage on every opportunity, and that is where the losses come.

[Donk1]

Well I will agree with you, but having knowledge still doesn't guarantee that you will make profits in trading. In fact in trading there is no 100% chance of you making profits it’s 75% chance this week and the next it could be lesser or higher. But that doesn't change the fact that we still need knowledge though. That's just my open view ,true our trading account balance doesn't even come close to giving a trader a chance to make profits but still, having a steady income, a backup funding account, and all other requirements for trading, as you said will make it easier to make profit. That's just it making profits is determined by how fast we evolve with the market because a single analysis or strategy cannot work forever, because the market continues to evolve..

[ZAINmalik75]

There are actually two different questions that can be asked about the same subject and they both will have different answers. The first question is: does our wallet balance determine the profits we make from trading? The answer to this question is no, because as you mentioned, the most important thing to be able to make constant profits from trading is to have enough knowledge and understanding about the market and trading practices, because without that, no balance can save you from losses and you will eventually lose everything.

The second question can be: does our balance make a difference in the profits we make in trading? The answer to this would be yes, if you are equipped with knowledge you need to start your trading journey and you know almost everything, then if you have a higher amount as your capital, your profits will relatively be higher, because obviously, if you are trading with $100, and you get a 10% profit on a trade, you get $10, but if you are trading with $1,000 and you get a 10% profit, that's a $100 profit for you.

[BitMaxz]

Well, I think we have many different reasons about this but to me, having a big amount of capital gives me more flexibility and increases my risk and margin. I'll stick with a 2% and maximum 4% risk of my total capital.

So if you have big capital, then expect an increase in margin and risk only if you stick with the percentage of the total amount like mine.  I believe it should be part of risk management; at the very least, you cannot risk the entire amount, but only a small portion of your capital, because there are lots of opportunities to enter the market, not just for one day. Unlike gambling, you can lose all of your money in one day.

[Hypnotizer]

I would want to know from others here if truly their account balance determines what they would profit as a trader..

In normal sense, account balance does determine “how much” profit you’ll make after a successful trade but that doesn’t mean your account balance would determine whether you’ll make a successful trade to even gain the profit or you’ll end up losing..

but then I have to think twice and said that our balance is not a product of our profit rather this is a factor of our in depth knowledge and understanding towards trading. You can have a sizable account balance but if you don't know what you are doing you would still end up losing them all so you should be able to know what you are doing.

Likewise if you have a big balance and don’t properly control your emotions and stick to your plans, you might end up losing big, probably almost all of it if you don’t really control yourself because you’ll keep trying to continue going even if you’re losing since you have big balance.

[Hamza2424]

However, having a sizable account balance doesn't really attributes to how successful you could become if you don't have the right knowledge of trading.

Yep, our balance can change our profit and loss as well. Therefore, don't think that if you can make 5% profit on $100, then why not increase the capital from $100 to $10,000 so you can make more profit. But bro, we also should not underestimate the benefit of high capital because the profit can be significant, and the loss will also be significant. But if you are really good and know everything you shared, like control over emotions, psychology, risk management, and liquidity management, etc.,

Then it is easier for a trader not to be manipulated by anything because their mind is clear of any biased opinions that can cause harm.

Their clear mind tells them what is important and what is not, and it is only possible because of knowledge of the market. Although candle analysis might not work well in crypto, especially in altcoins, it can still be really profitable too.

[Fivestar4everMVP]

For you to profits as a trader you must learn to work on your emotions, which includes risk management and knowing the right time to enter trade and when not to enter trade. In fact you must also understand your candle reading, which includes technical and fundamental analysis in other to understand how the market is moving and this is not all, you must also learn to control your greed index otherwise you could lose after some good profits from the previous trades. However, having a sizable account balance doesn't really attributes to how successful you could become if you don't have the right knowledge of trading.

Sorry but in terms of whether or not having a sizable account balance contribute to our success in trading, I completely disagree with your opinion, but however, in your areas that you touched on, you are basically right but those are not the main topic of discussion right?

A trader who has a sizable account balance have a greater profit advantage and opportunity compared to the trader who doesn't, having adequate knowledge in trading is a completely separate discussion that should not relate to this one at all.
The profit a $10 trade will make you is not the same and can never be compared to the profit a $5000 trade will make you assuming both sums were used to enter same trade at the same price and time.
So, as an aspiring trader and one who wants to take trading serious, aside gaining good trading knowledge and mastering the skills, you need good capital, which many refer to as liquidity, this does not mean you can't start small but you can't expect to make same profit ratio with the person who has your same level in knowledge but high trading capital advantage.

[logfiles]

I have seen people blow out their life savings in the name of trading. If it was all about account balance, then most of them would have succeeded. Trading involves a lot of things and one of them is patience. The attitude of thinking that you can trade within one month or two, and then you become a millionaire is absolutely misleading.

Once one persists with trading and gains some valuable experience, they will always know what to do. Losses are part of trading, but how do you manage the losses?

[yhiaali3]

Theoretically, it is true that the more capital you have, the greater your chance of profit, but at the same time your losses will be greater. Therefore, a large balance alone is not enough; you must learn capital management and basic trading strategies, otherwise you will end up losing.

It is best for beginners to trade with a small capital or with capital that they can afford to lose and be satisfied with small profits rather than being exposed to large losses. Trading is not just about capital, but also includes knowledge, personal qualities, emotional control, and making the right decisions at the right times.

[maydna]

If they know how to trade better, they will profits more than others. But some people using much money to starts trading without knows what they should prepares. They think that using big balance will helps them to profit big but if they can't buy the right coin, they will not profits.

I prefer to use enough money that I can afford and learning the details of trading including @OP mentions. That will helps me to pick the coins, analyze it, and determine the entry and exit.

While greed is one thing that we should avoids so we can takes profit at the right time. Having a sizable account balance giving us more opportunities to buy some coins and profits from that but we must have good skills to determine the coins.

[Zaguru12]

Well I will agree with you, but having knowledge still doesn't guarantee that you will make profits in trading. In fact in trading there is no 100% chance of you making profits it’s 75% chance this week and the next it could be lesser or higher. But that doesn't change the fact that we still need knowledge though.

What I think OP simply means is nothing other with knowledge you stand a chance of making profit but without this knowledge you do not stand any chance, gurantee isn’t given in anything so I don’t think it was even a discussion to start with. There is absolutely nothing guranteed even life it’s self isn’t not to talk of trading but here the risk is heavily reduced with the right knowledge.

I think your capital actually matters too, if you have enough capital that you can afford lose and you apply good risk management I think you stand a chance to have a better psychology than some who is trading with fear because they don’t want to lose there little capital. But still capital plays very insignificant role

[nara1892]

It's clear that we must first know and understand the activity we're engaging in. As you mentioned, OP, no matter how much capital we bring, if we trade without knowledge, we'll likely go bankrupt. So, knowledge is crucial.
From another perspective, I also see another answer to this question: does the amount of capital we bring affect the profits we'll earn? Of course, we're talking about percentages here. I personally started with $100 with a profit target of 5% per session, equivalent to $5. What this means is that the larger your capital, the larger your profits will be, regardless of the percentage.

[Alphakilo]

Why should a knowledgeable trader leave a big amount of funds in their account to begin with when they know fully well, the temptation of greed and the fact that having a large balance isn't a yardstick to survive the market?
 
Knowledge, emotional control, and a proven edge in terms of how to read candles, when to make an entry and how to use stop loss or avoid risky high leverage is what entails your balance doesn't get dry, otherwise ignorance of these risk management and good financial practices is a surety to failure in trading.

[Donneski]

I don't think the size of a trader's account balance determines wether they'll make much profit or not. If your balance is big, it tells how much you made from a successful trader.

A trader with no good strategy or one with poor risk management will still end up losing everything regardless of how big the account is. That's why it's better to focus more in becoming consistently profitable before you can think of increasing your trade capital.b

[Orpichukwu]

When we are talking about profit and the amount one has as balance, I look at it from the area of calculating profit. You can only make profit based on the amount you risked; that's how your profit will be calculated.

If we are to look at it from experience, having a big fund in your balance doesn't automatically give you an advantage. In fact, there is a chance that you might likely take more risky trades that will burn out that account than someone with a startup balance.

[jossiel]

To determine if you're profitable or not, it reflects to the balance that we have. Yes, we've got those strategies and technicals that we do when we trade.

But with how much you have also shows how profitable you are. If it's just a small amount then that's okay, you can always trade and grow that.

As well as the history of our withdrawals. If you're a trader that has a small amount in balance and that's because you usually withdraw then congrats, you're a profitable one.

[Odogwu-Blockchain]

You should've responded to the person who asked the question that, once you loose what you have carelessly, you'll know the value of it. If he thinks trading all about profits, then he should start with bigger amount and never need to understand the game of trading because he wants profits.

Of course, what you do with your money with the right knowledge determines your profit and losses, having huge some of money with the best knowledge ends in losses as well, the same huge amount ends in profit too depending on who handles it.