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 tradernumber Maybe 20% a month is too steep, though one should, when fully proficient, be aiming for ...

Reply
 
LinkBack Thread Tools Search this Thread
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.

My 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
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
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)