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Author Topic: A trader's weird thought about capital management  (Read 282 times)
Synchronice
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Today at 11:29:49 AM
 #41

How is it that a trader would think that the reason he is blowing accounts is because he only has a small capital and so doesn't make it a priority to protect that capital, the reason being that it's an amount that he can afford to lose? Is it not weird that someone who cannot manage a small capital trading account would think that if he gets hold of an account with big capital, he can manage it very well and make profits consistently without blowing the account? Do you also think capital is your problems and reason why you are not profitable?
The whole idea of trading is to generate money and for most people, the whole idea is to generate enough to not work and in the best case, they want to generate as much money as possible. When you have $100 and 1-2% profit generates you only a dollar or two, that's definitely not enough for anything, you'll only be able to buy a water, soda, beer, bread or an ice-cream. But if you have $100 000, generating one or two percent profit means that you are generating $1000 and $2000. This money is enough to make you live very well in many countries and live standardly in developed countries. Now you understand why people with low capital easily risk. They do it because $2 profit doesn't count and they want more, at least a hundred dollar and a huge capital gives them this possibility, so it's not weird to assume that people who can't manage a small capital, will manage account with high capital very well.

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Sawera2255@
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Today at 11:39:02 AM
 #42

Some people make their mind if the Equity is more then they will be able to earn profit in trading but in my opinion I think that experience is more important then equity in trade if u have no experience about trading then you will lose your money or if you have experience then you earn profit from less money crypto market is just like a buisness as if you invest much in buisness but you have no experience then at the end you lose all your money as it if you have no experience about crypto then you will lose your money here also so we should start it with small equity and when you get much experience then we should invest more money in it.
HelliumZ
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Today at 12:29:13 PM
 #43

Starting trading with small capital means that your risk is low in the initial stage. And if you start trading with small capital, you can gradually learn it as you gain experience as demo trading. There are many traders who want to start trading with more capital in the initial stage but they do not know that if you start trading with more capital in the initial stage, the risk will be much higher. But those who start trading with small capital in the initial stage and gradually gain that experience, as well as when they manage a large account with more capital, their profit amount is also higher. But in that case, of course, they must first learn the trading strategy well and take more capital.











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