If you were thinking of building a business, how much investment would you need? It depends on what business.
For example, Macky built a store because he had a small investment, while John built a Supermarket, because he had enough money for it.
Which of the two do you think is more likely to be successful or stay in business?
Of course who is more invested.
Same thing with trading.
If an investment trader experiences a losing streak, he or she will not immediately lose his or her account balance. Meanwhile, traders with little investment were pressured. Why?
Because his investment is small and he doesn't want to lose. No buffer whatsoever. Traders with little investment are also more emotional, knowing that when they are defeated one by one they can lose their balance.
This is why they cannot focus on trading.
Only a few traders have made a small investment but have been able to grow and reach millions. I'm referring to Richard Dennis as one of the greatest traders in history.
Anyway, how much capital should be invested before starting trading? That is the common question of many.
Depending on the market you are entering. The beauty of the Cryptocurrency market is that you can start trading with just 500 pesos.
Yes, that is true.
But do you think you would be a successful trader in such an investment? I wonder if in the 100 trades you made you lost no one.
But the questions are that no trader has ever made them even the best traders in the world. So if you have confidence in yourself that you will not lose in trading, go ahead!
No one really knows how much the investment should be. I'll just give you an idea, if the creepiness is in the range.
The ideal capital is at $ 1,000 or 50,000 Pesos. That range is not too small and not too big. Can be lower jan or higher. Depending on the trader's ability.
But always remember trading is like a business, and you should have enough capital for doing business. But I'm different, it doesn't mean that if you have a large capital you will be successful in your trading career immediately. Not yet.
It can be great for you as a trader, but to be successful trader it takes more than just money.
Read more :
https://www.thebalance.com/what-you-need-to-know-for-day-trading-1031072
https://www.daytrading.com/for-a-living
Other reasons why trader fails except for small capital
1 . There is no master of any trading strategy
2 . It is not known that risk management is one of the most important components of trading
3 . Unable to control the emotions, psychological factors that affect trading decisions.
Key elements to successful trading
Foundation
If you read all the trading strategies written here at Altcoinpinoy, I'm sure you'll have a solid foundation about trading.
Keep it simple, always choose a simple trading strategy.
When you have a trading strategy that matters to your personality, you can test it. You can do a backtesting manual or try using it on a paper trading account. So you know the win rate and positive expectancy of the strategy you use.
Trade plan
You also need to do a lot of research to make your tetrade plan work. Whatever kind of trader you swing trader, day trader, postion trader etc. You need the right planning.
Discipline
They say trading is like doing business, it requires a lot of discipline. Many like to exercise and exercise. But very few actually realize what they want to happen to their bodies.
It looks like trading everyone wants to make money, but few succeed. And one of the reasons is lack of discipline.
Money management
If you do not have the discipline, you will not get here. We often hear about risk management, but only a few people understand it. They still follow their emotion in trading.
Patience
If you are serious about getting tethered, you will not be in a rush to be successful.
Patience is a virtue.
Success in trading will take time, always look for a longterm perspective. You should not be jealous of other traders. If you are just a level 1 trader, don't compare yourself to a level 20 trader. You will also come there, you just need to be patient.
I hope you learned something new in this article. This is my opinion based on what I read and what I do.
It's very informative article. Yes i learned something new in your article and thanks for this.