Post
Topic
Board Trading Discussion
Re: Should I wait to have a huge capital before I start trading?
by
o48o
on 04/11/2024, 16:59:11 UTC
It's true that a good trader can make profits even in a falling market but if he uses a small capital then the profits will be small.
On the other hand, if the initial capital is bigger then the returns will be bigger as well.
If the trader is a pro, then he can surely use a bigger capital but if he is a newbie then he should definitely start with a small capital only.
Profits can be small, but so are the losses. When you risk more, you can gain more, and one way to do that with small capital is doing leverage trading. That also includes even more risk towards that small capital, but if it's money that can be lost, it might be worth a risk.

However i think this might be pointless advice as everyone who would benefit from leverage trading, probably already knows about leverage, and have decent risk management skills for it. And people who don't know, would be just using it as a casino, because without decent risk management, i am sure that they would lose money in 99% certainty.