Topic: The Higher the capital the higher the returns (Read 1909 times)

The reference still goes back to the capital and also to what we invest because when someone starts choosing the wrong investment, they will not be able to expect greater profits even though the amount of capital they use is quite large. However, if we look at the law of economics which is very common, it is clear that large capital in a more appropriate investment will make the potential profit greater because someone does not put their capital in the wrong place. So we also need to pay attention to the place and also what assets are before using more capital for this.

But whatever it is to find big profits with small capital is still difficult, I even say that in terms of percentage it is very small because realistically if you want to get big profits then it must be accompanied by large capital and it will be quite worth it with all the possible risks, the law of economics is like that.
And regarding the investment choices that we make, it will vary and everyone has different views and knowledge about their investment choices, I think that is not a reference.

This principle is true except that in some cases, those with big capital tends to venture into less risky business than those with small capital. The reason is that those who have a lot at stake will do better research at the risk factor than those who will not blink an eye if their money is lost. For instance, someone with $1 million dollar can invest such money in a business with a profit target of 5% per annum whereas someone with $1k will not do that because he might consider it as insignificant amount to make as profit in a year. What I understand is that the more money you have, the easier it becomes for you to make more money.

The return will be proportional to the capital issued and if using small capital and do not have the knowledge to collect then the return will be in accordance with what we invest.
Bitcoin is indeed promising in long-term investment but when the capital is small and not added to the ownership of assets that we have then the return will not be as large as people talk about.
Having much larger capital will provide the opportunity to generate maximum profit because we can make adjustments to purchases using several methods.

Investments must be made according to what you want to achieve and if you expect a large return then the capital that must be issued must also be large.

When you talk about economic principles, you must also include the opposite of profit, the bigger the capital you have, the bigger the profit and the bigger the risk too. If you are currently imagining investing in Bitcoin, it cannot be denied, you only need courage, mental readiness, the ability to control emotions and a high level of patience, then you can invest in Bitcoin no matter how much capital you have.
It is also important to note that investing what you can afford to lose is a measure of your readiness to bear the risk. In fact, the more capital, the greater the potential profit, so it is necessary to periodically increase the number of assets in a long-term investment plan if you want greater profits.

In terms of seeking profit with a certain amount of capital, not only can you see and analyze market prices at all times, but every trader and investor must always be able to see the general economic conditions which will also lead to analyzing market conditions so that we can know about gaps and also predictions of potential prices that will occur in the market. This is indeed not easy to know because the prices of assets that already have value in the market will always feel the impact of global influences at any time so that prices can often change from weeks and even months as is often the case with Bitcoin today.

Well, taking high risks with less capital has a higher chance of losing. Certainly there is a lot of competition among those who use less capital. Due to which the probability of their rate also increases to that extent. On the other hand, those who invest with more capital will have less return on investment but risk is less. In this case, it is entirely up to the investor which benefit he gives priority. Moreover, depending on the area of ​​investment, how much profit can be obtained from the investment will depend on it. After all if less capital is invested with the aim of getting high return that would be better.

In this business it can be called accumulation where when you buy products from suppliers with large capital, of course you will get more discounts. This is the law of trade. And when you get a cheaper price automatically you will also get a bigger profit. Let's say someone who starts a business with a capital of $ 10k and $ 1k. With the same business and getting the same price from the supplier and both taking only 10% profit. Business people with large capital can take about 20 or 30% of the profit for their living needs. That means around $ 200 or $ 300. But business people with small capital if they take 100% of the profit, they only get $ 100 for their living needs. This is unfair because someone with large capital can leave around 60 or 50% of their profit as new capital for their business.

Whether business or investment that we are talking into then it would really be just that be basing up on your risks tolerance on which we are really that trying out to achieve on one main goal on which having that generation of profits on which this could cause up on having these gains on which it would really be that be basing up on how well you do able to handle out such things. It would really be that
better that you should really know at least on what you should gonna do and also always consider about the risks factor. It is really that indeed true that on the moment that you are using up bigger capital then
it would really be also giving out that huge chance on making bigger profits too in compared into those who have started out small but just like been said and known that potential loss would really be equal to that.

This is why it would really be that important that on the time or moment that you do consider out on having bigger capital then it would be best that you should be wary about the risks involved.
You cant really just that dive in without making yourself being that prepared about those potential risks. So it would really be basing up on your risks tolerance and proper planning would really be
that crucial when it comes into this aspect. So it would really be basing up on this case.

Big profits don't necessarily come from big capital either, big profits can come from small capital, but most of the profits come from the way we produce it all, sometimes we have big capital but have small profits, our skills in making profits also necessary in trading where we can analyze market prices well so that we can look for gaps more freely to seek big profits, of course everything has its own risks, we must be prepared for all the risks so that we can be more careful and careful again in the future.

Exactly, low capital also has the same chance of generating high profits but the risk ratio is higher than high capital businesses, usually they have the expertise to manage low capital to increase the potential profit from business, trading, or others, but the achievement process takes a long time and patience to always update performance to test new things that have the potential to achieve the target. However, I will plan to increase the business with low capital to improve my ability to develop the business according to the plan, if I can achieve the first stage profit target then I will increase the business capital to expand the business network such as looking for mutually beneficial business partners.

The amount of capital and strategy and how to see important moments in the market must be balanced enough for each investor and also for each trader because in the end everyone will also hope for a level of luck but for capital and how to read some important moments it will be a very necessary basis for everyone. So it is true as you said that profit does not always come from large capital, but it has the potential to be realized through a high level of knowledge and is also accompanied by a sufficient amount of capital in the market.

and in my opinion not all things done with large capital can also produce large profits, because in every thing that is done there must be a risk side that might happen, if for example we have high capital does not mean we will get big profits too but it all depends on the strategy as you said and also with our own skills or knowledge that determine it, so balancing everything well needs to be done even though we have enough money but it does not mean we have to use it for high capital remember that risk will always be side by side.
all of this cannot be ascertained clearly, because what you said is true there are small investors who can reap big profits because they may do it very well so they can avoid risks or may be able to overcome the risks calmly, and there are also those who do use large capital but do not produce big profits but the opposite, this is because there is no certainty so considering everything by balancing it is something that needs to be considered carefully, do not be careless and reckless in doing something or making decisions.

Higher capital always translates to higher returns especially when the same odds is put in contest but, the case can be different when it’s subjected to certain amount of risk.
High capital on low risk or multipliers doesn’t always translates to higher returns. Keep in mind here that ROI is based on the net profit
Hence, one who takes more risk with a low capital can have high returns that might outweigh high capital investments.
Wheee the advantage to this risk to reward ratio is always in the fact that, you’ve got a higher chance of success with low risk than it would be with high risk.

This is true that the higher the capital the higher the profit that you can get from your investment, but it is not always depend on the capital it is also depend on the strategy, because there are also investors that earn big even if they only have a small amount of capital specially on crypto investment because they took advantage with the high volatility network, and there are also high capital investment that never earn because they don't hold and sell at loss when the market is dumping.

That is a natural challenge for every new company to face because building trust in order to be able to work with other companies is always not easy. So every new company will definitely show the level of sales they have achieved first with a more appropriate consumer target so that they can be trusted by the raw material provider. Because every company will not immediately build a collaboration if they do not see the good side of other companies and of course this must be proven through the sales achievements of each company.

It can be a mutually beneficial cooperation, the advantage for the raw material provider is that they have a larger new consumer and for those who are provided with raw materials it will be an advantage because they will no longer think about raw materials and in terms of price there is usually a lower agreement when buying in very large quantities. However, it is not easy to find such cooperation, because usually they also have other companies that have been working together for a long time. Not to mention if the company is new, of course the first step is to convince others to be able to work with us and it is not easy to convince others like that. We also have to have a very good history about our company to be able to convince other companies.

It would be even better if certain company owners cooperate with other companies in terms of bartering their production materials because it would be more profitable for each other even though there must be a decision that has been agreed upon in advance. Because each company owner can continue to manage their company with their own ideas, but in terms of marketing and sales it will also be more profitable when one company can sell its raw materials to a company that will make other goods from the raw materials.

what you said is right, even though the person is experienced but at least it is better for us to intervene because that can also make us gain more experience, so don't rely too much on others, even though it is said that we are capable of doing that but it is better not to do it. the thing to note is that everyone has their own thoughts and no one knows what is on each person's mind, not to be offensive but we still have to be vigilant.

besides that we as company owners certainly have the will over the decisions we have to take, the other side must be other people who work together to provide advice but that does not mean they determine everything, the decision is up to us to determine the future so accept advice from others and don't forget to consider it.
besides that we must be able to consider other things such as capital expenditures or funds for something even though there are benefits that can be obtained but considering it is something that needs to be done, don't forget this.

If the work is not much different, of course it is not wrong for you to rely on that person in learning the things you need in order to be able to improve your business within a certain period of time. Because usually people who already have experience in a field of business, of course they have knowledge that they can share with others as long as they are willing to share it for free to anyone. However, as the owner of a particular business, we also cannot completely rely on other people because we also need our own plans and decisions in determining the direction of the business and in advancing the business in the future.