Undercapitalisaton

i think this is killing a lot of profitable systems and traders without them even knowing it

Do you mean when a trader copies a signal or signs up on a MAM and their account doesnt follow expectations?

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.

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....

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.

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.

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

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.

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.

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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,

Tip: 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.

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

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.

Demo account is very useful but I have to create knowledge with that account and perform live.

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.

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.

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.

The basic rule that most traders follow is to endanger 1% of their trading capital in any trade.

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.