Topic: $100 USD vs $10,000 USD Trading Capital - page 4. (Read 763 times)
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It will change the result in making a profit, but that will still depend on what coin you will use to trade. If you have $100, you can buy a low price coin, but that coin can be profitable in the short or medium term, and you will make a profit when the price increase. But if you have a large capital, you will have many options to buy the coins. But you need to know that the more capital you use in trading, the riskier than if you use a low capital. But I will say that if you want to make a profit, you need to have skills.
I hear some people that doing trades and complaining about their trading capital.
So, does trading capital really matter at all?
Are there any disadvantages to having a low capital the higher one?
My point is, having a higher trading capital will make you a good trader or successful trader?
Because what I think is if you have high capital, the risk is high for sure yet the reward is also high, but when you have low trading it's still the same, you got low risk and still low reward.
Better capital is not going to make you as a better trader but it gives more chances and choices while taking trading decisions. It won't take much time for a good trader to convert the small capital into a big one in no time. So, does trading capital really matter at all?
Are there any disadvantages to having a low capital the higher one?
My point is, having a higher trading capital will make you a good trader or successful trader?
Because what I think is if you have high capital, the risk is high for sure yet the reward is also high, but when you have low trading it's still the same, you got low risk and still low reward.
Well, capital is one major thing i consider before venture into trade. The return from any investment (like trade) is a dependant of the amount in a trade. The more the capital the more the returns, likewise the higher the capital for any investment the more risk apply. Though i usually consider lower capital becasue of the low risk involve. we all know how volatile trading crypto is and for doing this it's encourage to take low risk.
It does not matter if you are trading crypto I think (0.01 BTC is still plenty), but it can matter if you are counting on a lot of withdrawals and on an exchange with a fixed fee for every trade. For example,,, if the fee is even 5 cents, 10 trades is already 50 cents or 0.5% of your $100 capital.
But if the exchange is only commission based, then no worry. Capital just gives you more options, not improve your chances.
But if the exchange is only commission based, then no worry. Capital just gives you more options, not improve your chances.
The benefit has big capital for trading is getting bigger profits, capital is not the true image that trader is good or successful, no matter what capital is used if you don't do money management then all can be lost instantly, regardless of your knowledge of TA and Fundamentals you also have to have patience and consistency in trading, big capital only makes feel richer than others and not describe the skilled trader.
If all the conditions are the same then more capital gives you more confidence and sustainability in case some losses. It also depends on your goals, small capital in trading is just gambling with high leverage or waist of time making peanuts.
Very often new traders use small capital but set unrealistic goals like making $1M from $100, they use high leverage, risk more and the result is blown account. You really must control your money management and have knowledge and experience, small capital-small risk-small gains but if you persistant and get knowledge and experience you may increase your capital. I prefer having a reasonable size account like $10k or so and low risk, not overleveraged.
Only the trading capital differ, but the profit out of the same will be almost same when calculated in terms of percentage. The important thing with trading is the choice of buying. There is possible chances of making $4000 out of $400 capital as well as out of $4000. This difference is entirely based on the asset that we've used for trading. More the capital more will be the risk and profiting.
Having $10,000 capital vs $1,000 is totally have a different result. More Capital + higher risk= more gains
small capital + low risk = small gains
We can choose depending on how much we can afford to lose. It is to know that both ways are risky but if we are aiming to make huge gains in a shorter time, we have to invest more in trading. Unless if we are just new and still haven't enough knowledge to manage our funds. Because for those risk-takers, they are preferred to choose to risk more.
Only the trading capital differ, but the profit out of the same will be almost same when calculated in terms of percentage. The important thing with trading is the choice of buying. There is possible chances of making $4000 out of $400 capital as well as out of $4000. This difference is entirely based on the asset that we've used for trading. More the capital more will be the risk and profiting.
My point is, having a higher trading capital will make you a good trader or successful trader?
Because what I think is if you have high capital, the risk is high for sure yet the reward is also high, but when you have low trading it's still the same, you got low risk and still low reward.
The fact is a successful trader is all about his skills and intuition about the market rather than the market capital he is investing. The higher the capital the higher the profit you can make if you are a careful and well educated trader but if you are learning the art of trading it is always better to start with very small amount.Because what I think is if you have high capital, the risk is high for sure yet the reward is also high, but when you have low trading it's still the same, you got low risk and still low reward.
Timing of the investment is always important, if you find a lucrative market that is undervalued then you can invest heavily in it. Say for example if you invested a huge capital in ETH when the ICO was offered it was a no brainier and anyone who invested and had the patience made a fortune.
I hear some people that doing trades and complaining about their trading capital.
I don't know why they would complain, but it's always better to have a larger trading capital when it comes to the value of profits.So, does trading capital really matter at all?
Are there any disadvantages to having a low capital the higher one?
You could have the advantage when having a higher one compared to low capital.Are there any disadvantages to having a low capital the higher one?
You could have both of them run simultaneously, but only the capital is the difference. The amount of percentage that you gain would be the same, but you would have different amounts per trade, in terms of profit.
Let's say if you had a 25% profit trade.
$100 +25% (of the invested amount, let's say you went all-in, $100). The capital with profit would be $125
$10000 +25% (of the invested amount, let's say you went all-in, $10000). The capital with profit would be $12500
That's just proportional to the amount of what you invested in that certain trade. Which is like you concluded in your post.
My point is, having a higher trading capital will make you a good trader or successful trader?
In terms of capital, you wouldn't be considered a good or successful trader. It's always about the results that you get, no matter the capital. One advantage that you would have with a higher capital is that you can trade more than a lower one. Depending on your strategy, you could DCA (dollar-cost averaging) more than a lower capital. That's basically it.
I will just put it simply:
Capital doesn't matter if the purpose is to maintain winning stats and no worries if the expected big profit will take time before it happened. Patience after all.
Capital does matter if the purpose is to make a quick profit or having a goal of targeting a nice return within a short period of time.
Either way, both are risky. Newbie or casual traders should not pressure themselves in getting profits no matter how much capital they will put.
Capital do matter in my opinion, since they both carry the same risk, you might as well go on a risky path rather than a safe but unprofitable account. When I say that you should walk down the risky path, doesn't mean that you should do a hail mary and spray 'n pray strategy, you still need to think and calculate your move every step of the way. One thing that can help you on traversing that risky path is by not putting your eggs in one basket, always diversify and always be frugal when it comes to your living expenses, always buy the essentials. Capital doesn't matter if the purpose is to maintain winning stats and no worries if the expected big profit will take time before it happened. Patience after all.
Capital does matter if the purpose is to make a quick profit or having a goal of targeting a nice return within a short period of time.
Either way, both are risky. Newbie or casual traders should not pressure themselves in getting profits no matter how much capital they will put.
I hear some people that doing trades and complaining about their trading capital.
So, does trading capital really matter at all?
Are there any disadvantages to having a low capital the higher one?
My point is, having a higher trading capital will make you a good trader or successful trader?
Because what I think is if you have high capital, the risk is high for sure yet the reward is also high, but when you have low trading it's still the same, you got low risk and still low reward.
So, does trading capital really matter at all?
Are there any disadvantages to having a low capital the higher one?
My point is, having a higher trading capital will make you a good trader or successful trader?
Because what I think is if you have high capital, the risk is high for sure yet the reward is also high, but when you have low trading it's still the same, you got low risk and still low reward.
Having a huge capital do simply means you could have a huge profit as well. Low capitals often get slow income as the gains would simply be low as well. Though you are right that having a huge capital is really risky, yet it really depends on the trader if he has a huge risk appetite and if he/she would want a huge profit or not (really depends on his capability tho). Hence, it matters depending on the purpose of the trader, and his risk-management and appetite.
So, does trading capital really matter at all?
If you are looking for high gain then capital is really a big matter .
Are there any disadvantages to having a low capital the higher one?
My point is, having a higher trading capital will make you a good trader or successful trader?
No , it's always depend on the skills and how good you are in trading even low or high your capital is as long you know what you are doing .
Because what I think is if you have high capital, the risk is high for sure yet the reward is also high, but when you have low trading it's still the same, you got low risk and still low reward.
Yes thats right in trading high capital is equal to high risk. Don't use large money if you know you can't handle to lost all of it.
I hear some people that doing trades and complaining about their trading capital.
So, does trading capital really matter at all?
Are there any disadvantages to having a low capital the higher one?
My point is, having a higher trading capital will make you a good trader or successful trader?
Because what I think is if you have high capital, the risk is high for sure yet the reward is also high, but when you have low trading it's still the same, you got low risk and still low reward.
So, does trading capital really matter at all?
Are there any disadvantages to having a low capital the higher one?
My point is, having a higher trading capital will make you a good trader or successful trader?
Because what I think is if you have high capital, the risk is high for sure yet the reward is also high, but when you have low trading it's still the same, you got low risk and still low reward.
Trading capital doesn't matter at all. You can imagine if you have $10k, but you don't have skills in trading, how you can choose the right coin to buy and sell. And if you have $100, but you have skills in trading, you will have the opportunity to buy the right coin, and of course, that coin will have the potential to increase.
Sometimes, we think that having a big capital can help us get a bigger profit, but that will not always work because the skills will be an important part of analyzing the coin. But the risk will be bigger too if you use a big capital, and you need to know how to manage the risk.
I prefer to use $100-$1k to trade while I can still learning to trade. I am sure that it will depend on analyzing the market to select the coin to buy and sell. But that will depend on you. If you think that having a big capital will help you make a profit, you can see what you will get later.
I will just put it simply:
Capital doesn't matter if the purpose is to maintain winning stats and no worries if the expected big profit will take time before it happened. Patience after all.
Capital does matter if the purpose is to make a quick profit or having a goal of targeting a nice return within a short period of time.
Either way, both are risky. Newbie or casual traders should not pressure themselves in getting profits no matter how much capital they will put.
Capital doesn't matter if the purpose is to maintain winning stats and no worries if the expected big profit will take time before it happened. Patience after all.
Capital does matter if the purpose is to make a quick profit or having a goal of targeting a nice return within a short period of time.
Either way, both are risky. Newbie or casual traders should not pressure themselves in getting profits no matter how much capital they will put.
With different capital in hands, people need to have different investment or trading strategies to get profits or to exit at price they want (take profit or cut loss, it depends).
Solutions:
- Volume is most important factor when you invest or trade. If a coin or token has very low volume that much lower than the amount you plan to invest or trade with it, you will get troubles for your orders. Your orders might not be filled up at price you want or won't be filled up at all.
- It is easy to exit with $100 for most of coins or tokens on the market.
- It is challenging to exit with $10000 (more than 0.7 BTC) if you set your order at a single price. It is not a matter with bitcoin but for most of altcoins, you will get troubles.
- Your orders look big enough to be considered as supports or resistances by others
- You can see profit on screen but if you can not exit, you won't get profit in hands
Solutions:
- Make your orders sparesly at different price will help them are easier to be filled.
- Make good allocation for your capital to a few coins/ tokens for your capital part for altcoins or tokens, not bitcoin.
- Diversification helps you
- Reduce risks from scam coins/ tokens and their unexpected dumps or scam exits.
- Might be easier to exit anytime you want.
- Bitcoin should account for 70% to 80% of your portfolio.
Trading capacity someone may be different. The way to put $100 or $10000 will be also a different matter to every trader.
Trading both still has the same impacts, risks, and also profits. However, it will be different on how many amounts to lose or take profits. Higher the capital, the higher the profits, and the higher also the risks.
That is why, when trading, there must be good management of risks, funds, and also emotions. Three types of management here must be at least to be done.
Let's say, if we are beginners, it means that we have not good enough experience, analysis, and also a consideration. Or moreover, we only follow other analyses and also signal in trading. So, putting $10.000 will be too risky. Never put the capital that we actually can't afford because if we lose much, we can be stressful.
But, if we are a professional trader with many experiences and also great analysis, I think trading $10.000 will be usual, they commonly think of it as a challenge sometimes. But of course, the first goal is to get big profits.
Invest wisely, based on what you can afford and survive for your risk, funds, and also emotion.
Trading both still has the same impacts, risks, and also profits. However, it will be different on how many amounts to lose or take profits. Higher the capital, the higher the profits, and the higher also the risks.
That is why, when trading, there must be good management of risks, funds, and also emotions. Three types of management here must be at least to be done.
Let's say, if we are beginners, it means that we have not good enough experience, analysis, and also a consideration. Or moreover, we only follow other analyses and also signal in trading. So, putting $10.000 will be too risky. Never put the capital that we actually can't afford because if we lose much, we can be stressful.
But, if we are a professional trader with many experiences and also great analysis, I think trading $10.000 will be usual, they commonly think of it as a challenge sometimes. But of course, the first goal is to get big profits.
Invest wisely, based on what you can afford and survive for your risk, funds, and also emotion.
Thought about it for a moment and the best answer is to find why the traders usually risk more than what advised by professional traders. Compare the two traders, the first one can make 10% per month with $100k trading capital while the other trader takes more trade positions in order to make %30 per month with $30000. The profit is ~ the same but the risks, money management, losses are not equal.
Definitely it was so true, be it worth $100 or $10000 this was still risky. The difference between this two kinds of investment was how the investor could manage this two kinds of investment. Some believes that the higher you pay out for your investment, the higher you may get the return of your investment but of course the higher the risk. Some believes also that in order to save them from losses ahead they were try in a small amount of investment, believing with small ROI too and of course small risk. Hut at the end of the day, the one who manage their investment wisely was the one who can harvest grain at the end.
Thought about it for a moment and the best answer is to find why the traders usually risk more than what advised by professional traders. Compare the two traders, the first one can make 10% per month with $100k trading capital while the other trader takes more trade positions in order to make %30 per month with $30000. The profit is ~ the same but the risks, money management, losses are not equal. Which one do you wanna be? To be honest, I care about my health and will go for the first option if the profit is the same in the end.
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