Why do people start with small accounts?

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Old Jan 6, 2018, 5:19pm   #41
 
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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
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Old Jan 23, 2018, 6:28pm   #42
 
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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!
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