Why do people start with small accounts?

Feb 20, 2017
93
18
18
#31
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.
 

piphoe

Well-known member
Oct 31, 2015
10,046
194
123
#32
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
 

Quantt

Active member
Jul 23, 2017
945
57
38
#33
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...
 

shadyee

New member
Dec 29, 2017
18
1
3
#35
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.
 

Nowler

Active member
Sep 13, 2017
758
55
38
#37
*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
 
Likes: piphoe

shadyee

New member
Dec 29, 2017
18
1
3
#38
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.
 
Likes: Nowler

Brumby

Well-known member
May 25, 2012
600
136
53
#39
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.
 
Likes: Quantt

Kaeso

Active member
Oct 4, 2015
862
91
38
#40
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 :)
 
Jan 6, 2018
4
0
1
Siberia
#41
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
 
Jan 7, 2018
67
6
8
Michigan
#42
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! (y)
 

Attachments