Undercapitalisaton
Sep 11, 2020 at 03:51
1,309 Views
18 Replies
Member Since May 01, 2020
9 posts
Sep 11, 2020 at 03:51
i think this is killing a lot of profitable systems and traders without them even knowing it
Member Since May 01, 2020
9 posts
Sep 15, 2020 at 06:01
It's when a trader starts with a small account than his risk appetite which then fails to absorb the losses of his strategy ending with the trader frustrated and taking unnecessary risks, and some even start with accounts so small that even if they practice good risk management the profits are too small again leaving the trader with the option of taking big risks and blowing accounts and in the end they fail to realise that thinking its the strategy not working and dump a good strategy not realising that it's actually undercapitalisation.
Sep 17, 2020 at 17:54
And it seems to me that the main problem is the distribution of capital, because people often increase the risks, because they are as confident in some position as possible, but do not do it, I think it is much more correct to stick to the selected system at each stage of work.
Sep 18, 2020 at 07:41
True. One more thing is people should not use huge demo accounts. They should set the demo account capital to the same amount that they are going to invest in a live account. Then gradually move to live account and trade.
Never Ever Give Up
Member Since May 01, 2020
9 posts
Sep 18, 2020 at 13:31
Fordrerne posted:
On the other hand, it is normal to start with a small capital to appreciate all the advantages and features of a brokerage company.
It is especially risky to invest everything in a project where you are not sure....
It becomes a problem when it's all the money a trader has got
Member Since Jul 20, 2020
286 posts
Sep 21, 2020 at 02:13
Every trader should learn about trading. If you don't learn and trade, you have to face many unexpected losses. Many traders try to make a lot of money by investing very little. Due to which they lose. If you do not have discipline in trade, you will not be able to achieve satisfaction by making a profit.
Member Since May 01, 2020
9 posts
Sep 21, 2020 at 10:45
LeviSievwright5 posted:.
Every trader should learn about trading. If you don't learn and trade, you have to face many unexpected losses. Many traders try to make a lot of money by investing very little. Due to which they lose. If you do not have discipline in trade, you will not be able to achieve satisfaction by making a profit.
Yes because all the expectations are offset, probably its the mentality of trying to get rich quick of which it's not like that, it's supposed to be treated like a business, instead of tracking the P/L it's better to track the ROI in percentage growth,
Member Since Jul 20, 2020
385 posts
Sep 27, 2021 at 07:01
Definitely shouldnt use huge demo. The purpose of a demo is to trade your strategy your capital and your emotions and then go live. If youre trading with a 200k demo and have 500 starting capital itll do you no good imo
Member Since Feb 20, 2021
51 posts
Sep 29, 2021 at 08:19
You learn better when you have put your money at risk. If you keep trading on a demo account, you won’t gain anything more than confidence. So after a specific time spent demo trading, go live with a small account.
Member Since Mar 16, 2021
447 posts
Nov 07, 2021 at 12:58
Demo account is very useful but I have to create knowledge with that account and perform live.
Nov 18, 2021 at 04:35
I think when it's about learning and adjusting yourself to live market conditions, low initial capital is perfect. However, when you have practiced enough and want to bring in substantial profits it’s important to invest a sufficient amount of money in your trading account.
Member Since Mar 16, 2021
447 posts
Nov 20, 2021 at 01:41
GraceGilm posted:LukeRachel posted:
Demo account is very useful but I have to create knowledge with that account and perform live.
demo gives many advantages not only at the beginning of work, but even for experienced traders
Yes, everyone needs a demo account, but beginner traders have more and less experienced traders.
Jan 13, 2022 at 19:18
It's quite a very spread issues when a trader with small account lose everything and then he/she tries to get this money back. Everything here depends on how you are able to control your emotions, because in this particular situations emotions prevail over your conscious and thoughts. I agree that it's pretty difficult to control your emotions, because sometimes they literally overfill you. However, traders have to learn how to minimize the influence of emotions on their trading activity. If you started to notice that sometimes you let your emotions to make deals instead of your conscious, then it's a direct indicator that you have to take a break.
Member Since Jul 23, 2020
816 posts
Feb 02, 2022 at 15:36
The basic rule that most traders follow is to endanger 1% of their trading capital in any trade.
Member Since Jul 23, 2020
696 posts
Feb 03, 2022 at 17:52
There is no minimum limit to start investing in the market. You simply need to have enough capital to cover the price of the asset.
Member Since Apr 09, 2019
516 posts
Apr 05, 2022 at 10:44
If you feel that is an issue then prop firms can help with that issue. But in most cases people need less than they think. The problem is misaligned expectations of what is possible.
If you can't spot the liquidity then you are the liquidity.
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