A trader's weird thought about capital management

[Synchronice]

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.

[Sawera2255@]

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]

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.

[savetheFORUM]

I can assure you that someone who has a small capital and loses will also lose at a bigger capital as well. Because he has never proven that he could make a profit, not to himself, not to anyone else. If you have a small capital and can make money, you could grow it, put more money in it, and it is growing because you are profiting.

You can start as low as 100 dollars, make a profit, and put more and more in it. That would mean you have proven that you are making a profit, and then bigger capital would mean bigger profit as well, of course. But if you have never made a good profit for an entire month, for example, and you are still thinking about more money? Then how could you be sure that you would? There is no proof that you could do that.

[Maslate]

I can assure you that someone who has a small capital and loses will also lose at a bigger capital as well. Because he has never proven that he could make a profit, not to himself, not to anyone else. If you have a small capital and can make money, you could grow it, put more money in it, and it is growing because you are profiting.

You can start as low as 100 dollars, make a profit, and put more and more in it. That would mean you have proven that you are making a profit, and then bigger capital would mean bigger profit as well, of course. But if you have never made a good profit for an entire month, for example, and you are still thinking about more money? Then how could you be sure that you would? There is no proof that you could do that.

Small or big capital, if you don't have potential skills and experience in trading, you will definitely end up losing. Its not actually the amount of capital that matters, but its your mental and emotional readiness towards trading that will matter the most. Having clear plan and goal, strict risk management and emotional control are your edge as a trader, if you lack on these despite having large amount of capital, trading will stull be useless.

[AVE5]

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?

There's this saying that someone who can't manage a little amount of money can't manage efficiently a huge one.
Capital is truly important to look out to when considering the perspective to make  profits regarding that you're not going to win everytime just as it's in gambling, consistent trading can also yield profitability while the amount of your bankroll also matters.
Although some good and lucky traders could also turn small capital into huge profits but there's an advantage when the capital is huge for long term sustainability.
However, there's not going to be magical on having large capitals, risks management determines it all.

[Josefjix]

Although some good and lucky traders could also turn small capital into huge profits but there's an advantage when the capital is huge for long term sustainability.
However, there's not going to be magical on having large capitals, risks management determines it all.

Whether such trader turns small capital into big ones or maintain big capital, it's not going to change anything, because a bad day can ruin everything into zero, the worst thing about trading.

What matters most is the ability of the trader to maintain risk management and know, how to spot a good setup and then enter at the right time, knows when to go on reset, rest and then quit the charts for a short period of time then comeback when necessary.

All these matters too as well to maintain the financial management portfolio, not just turning small capital to big and then ruin all in a bad day.

[Plutomanian]

Small or big capital, if you don't have potential skills and experience in trading, you will definitely end up losing. Its not actually the amount of capital that matters, but its your mental and emotional readiness towards trading that will matter the most. Having clear plan and goal, strict risk management and emotional control are your edge as a trader, if you lack on these despite having large amount of capital, trading will stull be useless.

We all have one goal in the market and that's simple, to acknowledge our witnesses and strengthen them without having to be more vulnerable again, this is the time to wake up and do something meaningful because none of us can sit and accept failure.

Capital is not relevant, it doesn't matter if your capital is big or small but without the proper management and skills, a trader will have high chance of liquidating his or her portfolio because there's absolutely no emotional discipline, no risk management, no single experience and no consistency. This features all contributes to a trader been a professional one in the market.

[Findingnemo]

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This is an argument that sparked among traders arguing why each of them is not yet profitable. While others gave meaningful and agreeable reasons why they are not profitable, one of them insisted that he is not profitable because his capital is so small and he doesn't care if he loses it or not, and that's why he is not profitable. He said that if he is trading a big capital account like $1k, he can consistently make profits without blowing the account. Note that $1k is considered big, because he is trading with very small capital, not even up to $100.

So, what do my fellow traders think about this? Don't mind the title if you don't think it's weird; it's just my opinion.
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It is not weird, it is just stupidity to take more risk than you should just because the capital is small and end up losing them, what is the point of doing such trading?

Capital is important but not to make profits but it decides how much profits you make, or else you will be calculating the profits in percentage over the number that should be encouraging when you are doing good and let the compoudning effect to do the accumulation of your trading capital, but when you trade with small capital then don't have high expectation.

[Hatchy]

What I personally think is that if a trader lacks discipline or proper risk management in managing a small account, that indisciplined attitude and poor risk management will still affect them even if it is a big account they are trading. I think one should be able to manage even a $100 account very well before they can handle a $1k or bigger account.

It's actually a very poor mentality when it comes to capital management. When you make yourself to believe that you need a large capital to make it though trading, then you will not only deceive yourself but also grow a bad risk management habits. Some traders are really bad at it. You see them stacking up positions or using high leverages on a small account hoping to flip to millions over night. It's just ridiculous to think that way because you will keep losing accounts without knowing what you are doing. The secret behind good risk management is having the right knowledge, experience and view of the Market. The market does not owe you anything, it even wants to take from you but o ly those who understands how to navigate it will be able to avoid losing to the market on a long term..

[Webutxo]

It is not weird, it is just stupidity to take more risk than you should just because the capital is small and end up losing them, what is the point of doing such trading?

Capital is important but not to make profits but it decides how much profits you make, or else you will be calculating the profits in percentage over the number that should be encouraging when you are doing good and let the compoudning effect to do the accumulation of your trading capital, but when you trade with small capital then don't have high expectation.

There is something about traders that takes extremely high risk with small capital, they are not just greedy, they don't understand how to trade. They make trades with their limited knowledge and thinks that because they have have watch and seeing some people make money from high leverage, they think they can do the same. Why will a common sense not tell them that a leverage that is high as 100x can take their money with small change, they don't know until they test it.

Your profit is not about the leverage, it's the position that matters, the fee from the exchange is also there. Even if you use high leverage, the exchange will take more from their trades. If they are liquidated, the exchange will be quick to execute and close it and take the fee, at the end of the day the person that is enjoying and taking the money is the exchange, the traders that are losers and the worst losers are the ones that trade high risk.

[Findingnemo]

It is not weird, it is just stupidity to take more risk than you should just because the capital is small and end up losing them, what is the point of doing such trading?

Capital is important but not to make profits but it decides how much profits you make, or else you will be calculating the profits in percentage over the number that should be encouraging when you are doing good and let the compoudning effect to do the accumulation of your trading capital, but when you trade with small capital then don't have high expectation.

There is something about traders that takes extremely high risk with small capital, they are not just greedy, they don't understand how to trade. They make trades with their limited knowledge and thinks that because they have have watch and seeing some people make money from high leverage, they think they can do the same. Why will a common sense not tell them that a leverage that is high as 100x can take their money with small change, they don't know until they test it.

Your profit is not about the leverage, it's the position that matters, the fee from the exchange is also there. Even if you use high leverage, the exchange will take more from their trades. If they are liquidated, the exchange will be quick to execute and close it and take the fee, at the end of the day the person that is enjoying and taking the money is the exchange, the traders that are losers and the worst losers are the ones that trade high risk.

What can we expect from the people who got their wisdom about trading after watching a couple of 60-second videos related to crypto trading or manipulated by wrong influencers who sell some bullshit as real money making strategies for few bucks.

High-risk trading is okay but when they take that route then the risk will also be higher and that is a simple thing for anyone to understand when they know the concept of investment/trading.

[Issa56]

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?

Someone that cant properly manage an account with small capital, then if you give someone like that account with big amount of money, their is no way they not going to blow the account also. If you really understand trading, and you can properly manage your risk, either you are given account with big capital, or small capital, you should be able to properly manage the account. Some people are always looking for excuse whenever they make mistake, or whenever they don’t do things in the right way.

Capital is not always the reason why traders are not profitable. If you have small capital, you might not be making so much profits, but that doesn’t mean you won’t be profitable. If you understand trading, and you can properly manage your risk, you might even be profitable than someone with big capital that can’t manage the account properly.

[Russlenat]

I can assure you that someone who has a small capital and loses will also lose at a bigger capital as well. Because he has never proven that he could make a profit, not to himself, not to anyone else. If you have a small capital and can make money, you could grow it, put more money in it, and it is growing because you are profiting.

You can start as low as 100 dollars, make a profit, and put more and more in it. That would mean you have proven that you are making a profit, and then bigger capital would mean bigger profit as well, of course. But if you have never made a good profit for an entire month, for example, and you are still thinking about more money? Then how could you be sure that you would? There is no proof that you could do that.

If you can't profit from a small capital, then the more that you're not reliable enough to manage a big capital. You can't be trusted with small ones, how much more for big ones, you will only mess up with the funds and still lose the same way but with a bigger amount of loss.

Trading capital is crucial to start trading, but its never a requirement to start trading with a big amount of capital, and its never a guarantee as well that with huge capital comes with bigger chances to profit and make a successful trade.