Why do people start with small accounts?

ph_trader

Well-known member
410 6
there are a lot of factors deciding what capital u should start with, if the broker is new and u are a vet trader, then always start small and try to hit an ROI and see if any problem occurs during the process. but i suggest going for more well known and reliable brokers like hotforex which are heavily regulated. if u are a new trader even if the broker is well known and safe still do start small. uu dont wanna fall for what i did when i first started forex and watched that hard earned money fly in 10 minutes. LOL so yeah. good luck
 

xjtorerox

Junior member
15 3
Because there is a lot of knowledge to absorb and a lot of mistakes to make before risking more money.

Every trading teacher says that your goal at the beginning is to keep your capital. So is better to start with less money.
 
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galbi

Junior member
19 3
Because when you are starting, you are very cautious about spending your money into the broker's account hoping not to get wiped out easily.
 

attila low

Junior member
33 0
You sometimes see threads with people trying to turn professional trader with as little as 10k or even 5k. I can't understand the thought process there.

Let's say you start with 10k and compare trading for a living with getting a job.

If I work for a living, that's likely to cover my costs of living, and if I can set aside 100 per month, I'll end up gaining 1,200 over the year, or 12%. Better than a lot of hedge funds. If I can save 500 a month, my account is up 60%, better than almost all hedge funds! You are unlikely to make that return in trading in a year, and even if you could, after you have deducted living costs, what are the chances. Start with 5k, and we're talking 24% or 120%. Be realistic.

Working for a living, you're likely to increase your account more and gain pension money etc compared to trading. And the other thing to consider of course, is that if trading, your account can go down. Working doesn't usually lead to a loss.

Even for successful traders, it seems it only makes financial sense if your account is in the 6 figures*.




*of course some people can trade and work, and that makes sense if they can do it. I'm just referring to the idea of solely trading, no job.
btw in a third world country like my one , 10k is pretty hefty
 

Bale!!

Newbie
4 0
Every beginner starts with a small account because you got to be cautious on your starting trade.

I only traded small till i grew the confidence that i could trade with large capital and sometimes accept loss as well.
 

Galen130

Newbie
2 0
Everyone starts with small bills so that there are no big losses.
Agreed. I was trading stocks after the whole Y2K scare, but I couldn't spare the time to actively trade. My portfolio was inactive for 15 years with no stocks to speak of...and now I'm back to learn how to day trade amid this whole Covid-19 epidemic. Boy, I sure can pick when I start trading on the markets. Lol. I digress. I've started small again (4 figures) and I'm nowhere near a day-traders portfolio on my platform. So I spend time every week for over a month just moving stuff around..selling/buying/reinvesting. It's usually for a small loss, but I've gotten bored playing with stock simulators where I pretty much handle myself well. Starting small isn't a bad thing, but if you're impatient...it can lead to potentially disastrous mistakes. Thanks for reading my rant!!!(y)(y)(y)
 

chartmans

Newbie
3 0
btw in a third world country like my one , 10k is pretty hefty
People start with small accounts as they don’t want to risk their money by putting in higher amounts. Also, they want to check the trading conditions of the broker and grow their account gradually. People have less knowledge and experience at the starting so it’s better to start off with a small account only. If you start with high capital - there is a probability of losing more.
 
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