Post
Topic
Board Trading Discussion
Re: The sole difference is capital.
by
Altryist
on 25/11/2022, 15:01:56 UTC
Capital measures your possible profit and losses.
Huge capital can be if huge risk as well but that was not the mean thing in trading because the real player is how you manage your fund and the strategies used. Because no matter how huge is your capital if mismanage and never have control of it, losses can be possible in end. So, if you put a huge amount into trading be sure that you already have a backup with knowledge and skill otherwise, you will no longer see your money back in your pocket anymore.
Large capital is more suitable for investment, probably every trader strives to have a large capital that can be invested and receive passive income. A large trading deposit is to some extent a big risk, because you need to be prepared for large amounts. Also, if a trader has good results in trading with small amounts, it does not mean that he will have such results with a much larger deposit.