Why do people start with small accounts?

This is a discussion on Why do people start with small accounts? within the General Trading Chat forums, part of the Reception category; Originally Posted by piphoe i think i could do it, and not tyring be arrogant here, i.t.h.i.n.k.i.c.a.n.d.o.i,t ie, take a ...

Reply
 
LinkBack Thread Tools Search this Thread
Old Oct 6, 2017, 9:08pm   #31
Joined Feb 2017
Quote:
Originally Posted by piphoe View Post
i think i could do it, and not tyring be arrogant here, i.t.h.i.n.k.i.c.a.n.d.o.i,t

ie, take a 5K acct too 100K on no more than 5 contracts over a year

i think i can do it, haven't done it but i lol think i can
Sorry to say you'd be wasting your time since even if you did it, you'd lose it soon enough afterwards at that vol.
Fill_Or_Kill is offline   Reply With Quote
Old Oct 6, 2017, 9:11pm   #32
 
piphoe's Avatar
Joined Oct 2015
Quote:
Originally Posted by Fill_Or_Kill View Post
Sorry to say you'd be wasting your time since even if you did it, you'd lose it soon enough afterwards at that vol.

if you gave me 50K , i couldn't take it to 500K.

but if you gave me 5K, i'd be up 100K at end of the year.

thats the crazy psychology ..of RETAIL. we aren't used to working with these big #'s
__________________
want the "dime", put in the time!
piphoe is offline   Reply With Quote
Old Oct 6, 2017, 10:28pm   #33
 
Quantt's Avatar
Joined Jul 2017
Quote:
Originally Posted by tradernumber View Post
Maybe 20% a month is too steep, though one should, when fully proficient, be aiming for at least 10% to 15% a month. If you treat trading like investing, an altogether different game, why not use the trading trading funds to invest in the first place? Good investors are a lot wealthier because the funds they invest are far larger, and they usually invest with fund managers. You do hear about billionaire investors but never billioanire traders, that's because mega-wealthy investors usually have significant stake in the companies themselves e.g. Buffett, or fund managers who pool the money of their clients to buy up sizeable stake.
Sorry, but 10% a month on average long term is not mathematically possible...
__________________
"If you don't find a way to make money while you sleep, you will work until you die." Warren Buffett, CEO of Berkshire Hathaway.

Count de Money number 1 trading rule: EDUCATE YOURSELF!

Before you trade even single penny on the stock market, please spend the time and educate yourself by back testing different trading strategies and ideas - go to eBay and search for "historical stock market data", you can buy 20 years of data for less than $100 - that's all you need to start.
Quantt is offline   Reply With Quote
Old Dec 27, 2017, 9:22pm   #34
 
Dagerban's Avatar
Joined Sep 2015
For the most part it's because a newbie is afraid of losing money.
Dagerban is offline   Reply With Quote
Old Dec 29, 2017, 9:34pm   #35
Joined Dec 2017
Basically, the idea of starting small is not to remain in that stage forever. But this to cut down risk of losing much as a newbie and it also helps you in management. If you lose at this stage, it would be what you can spare and nothing more.
But then of course, gradually your lot in the market can improve at a slow and steady pace, for me this is a good strategy for newbies; to start small.
shadyee is offline   Reply With Quote
Old Dec 30, 2017, 1:46pm   #36
 
neil's Avatar
Joined Nov 2001
Common sense

Quote:
Originally Posted by Dagerban View Post
For the most part it's because a newbie is afraid of losing money.
********
Use common sense -look at these vids for a reality check.


and - how long before a trader is profitable ?

__________________
neil
....Indicators show the past. Price Action "Indicates" the future.
neil is offline   Reply With Quote
Old Dec 30, 2017, 5:17pm   #37
Joined Sep 2017
*cough..leverage.. cough*

I can get 100/1 leverage... With a mere 1,000 I now have 100,000.
Which is no longer a small account
__________________
Education is the passport to the future! He who prepares today, owns tomorrow! But remember, Imagination is more important than knowledge. For knowledge is limited, whereas imagination embraces the entire world, stimulating progress, giving birth to evolution.
Nowler is offline   Reply With Quote
Thanks! The following members like this post: piphoe
Old Jan 3, 2018, 10:21am   #38
Joined Dec 2017
The idea of starting small is not necessarily to get huge profits, but as a measure for caution. This is true especially for beginners who would not want to rush the market, and I definitely buy this idea. Starting small helps you watch the market and learn the ropes without the fear of risking so much, so even when there are mistakes you wouldn't lose much.
After a while you can gradually increase your investments to the point where it is fully established at close watch.
shadyee is offline   Reply With Quote
Thanks! The following members like this post: Nowler
Old Jan 4, 2018, 1:01am   #39
Joined May 2012
The original post was about the feasibility of starting small with only a professional capital of $10,000. The argument is that it is insufficient to generate a source of income for a full time professional. The discussion isn't about starting small for a novice - a completely different topic.
__________________
_______________


Those who know do not speak
Those who speak do not know
Since I have spoken, I do not know
Brumby is offline   Reply With Quote
Thanks! The following members like this post: Quantt
Old Jan 6, 2018, 1:23pm   #40
Joined Oct 2015
Quote:
Originally Posted by Brumby View Post
The original post was about the feasibility of starting small with only a professional capital of $10,000. The argument is that it is insufficient to generate a source of income for a full time professional. The discussion isn't about starting small for a novice - a completely different topic.
this is true! the title is to blame, its ambiguous
Kaeso is offline   Reply With Quote
Old Jan 6, 2018, 5:19pm   #41
 
4 Posts
Joined Jan 2018
Fundamentally, if you are a medium to high earner with no savings, this is your fault through a series of bad decisions over the years.

To want to leverage what savings you have, in order to take speculative positions on the market in the hopes of making large returns is irresponsible.

To want to give up a professional career, in hopes of financial freedom from trading at home, again is unrealistic.

The truth is, that you will need an income stream outside (this can be generated through a small business which your $10,000 can start). Once you have furthered your viable income streams; from a professional career, a small business etc. then you have the financial freedom to begin to take speculative positions on the market.

Here again, as with your small business, your aim will be to grow your business. It is stupidity to throw a large sum of capital into an account, simply to be able to take larger positions. All you are doing is increasing your risk exposure.

An investor with an understanding of risk will look over longer horizons, broader markets, and focus on net return not simply the number of 0's following an integer.

Good luck.

R
RuslanProvodnikov is offline   Reply With Quote
Old Jan 23, 2018, 6:28pm   #42
 
Penny Picks's Avatar
Joined Jan 2018
Trading w/a small trading acct

I've been in the trading arena for a long time. I've also lost more than my share of trading cash.

It's taken a long time but I' finally got something that works for me; a small trading acct.

It only takes a couple of rules.
  1. Acct size ~ $300 Max of $500 USD
  2. A stock screen that you can trust (This is a paid service so I can't help here.)
  3. A couple of common easy to get price indicators. My 2 favorites are shown on the chart. There are a couple of others I use that are not shown.

Attached is an example of one of my recent trades. (A Note. I'm not selling anything because I don't have anything to sell)

I bet $250 USD in this trade and closed out at .61 for a bit of profit of $360 USD For a couple of months low risk that's a pretty fair ROI

That's not quite enough to pay off the national debt but it's a start.
Oh. 5 or 6 months ago I had one that returned about $2700. The saying goes "Some trades are DIAMOND, SOME TRADES ARE STONE

When I started out with the Small Cap / Penny stocks I returned the initial $300 back to my bank acct. So now I guess I'm playing with "House" money.

Another note: I've been trading since the mid 1980s and I've lost more than my fair share. One thing I've learned is to remove the GREED FACTOR!
Attached Thumbnails
cvsi.jpg  
Penny Picks is offline   Reply With Quote
Reply

Thread Tools Search this Thread
Search this Thread:

Advanced Search

Similar Threads
Thread Thread Starter Forum Replies Last Post
Small Accounts <$5k TODA.1 Forex 21 Apr 3, 2015 6:37am
Accounts with small Initial stakes vgrade Spread Betting & CFDs 6 Jul 10, 2008 7:41am
Spreadbetting - Just for small accounts, Day Traders or Shorts ??? *JDR* Spread Betting & CFDs 9 Sep 7, 2006 8:29pm
Trading with small accounts jnunes Forex 7 Jul 3, 2005 11:26am
US Stock Brokers for Small Accounts? clylbw Brokerages 5 Mar 22, 2004 10:42pm

Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)