But at the same time there's another point to be considered which is that with low capital we become more fearless when compared to a high capital.
When our capital is high and when we make investments on higher amounts we tend to fear more.
Fear eats up the profits and gets us losses. With less fear in low capital we tend to make out decent profits.
Indeed, the larger the capital, the greater the loss may be. And if you do not learn how to trade with small capital, using risk management in your trading, then all the mistakes that were made will be automatically transferred to trading with large capital.
Yes ofcourse and that is the reason most experts advice to start slowly and trade with a small capital in the beginning.
Once we start getting consistent profits only then we should think of increasing the capital gradually.
Many people start trading with a big capital and lose big money which is a mistake we should avoid at any cost.