Cordardred posted:
I believe that it is better to start with $5000-$10,000 in order to understand the principles of trading, risk and money management and psychology. Surely, it depends whether you can afford such sum of money without going in debt, but if you can and if you want to devote your life to trading, you'd better start with such sum of money.
Well, managing risk requires good investment. Which will help me make a profit on my account.
Oct 05 at 07:09
AliaDare posted:Cordardred posted:
I believe that it is better to start with $5000-$10,000 in order to understand the principles of trading, risk and money management and psychology. Surely, it depends whether you can afford such sum of money without going in debt, but if you can and if you want to devote your life to trading, you'd better start with such sum of money.
Well, managing risk requires good investment. Which will help me make a profit on my account.
Completely agree, like if you risk 1% of your account and you have 1000 in your account you would need to lose a lot of trades without winning one. It is key to let variance have some room and then you can focus completely on nailing down your entries and all the other important things. It is so key to make sure you're comfortable in a trade that when it goes into DD you are not getting nervous at the red number. It is a skill to learn but can definitely be learned
Oct 05 at 08:12
The higher the amount, greater is the profit. But for beginners, a minimum of $100 is enough.
CraigMcG2020 posted:AliaDare posted:Cordardred posted:
I believe that it is better to start with $5000-$10,000 in order to understand the principles of trading, risk and money management and psychology. Surely, it depends whether you can afford such sum of money without going in debt, but if you can and if you want to devote your life to trading, you'd better start with such sum of money.
Well, managing risk requires good investment. Which will help me make a profit on my account.
Completely agree, like if you risk 1% of your account and you have 1000 in your account you would need to lose a lot of trades without winning one. It is key to let variance have some room and then you can focus completely on nailing down your entries and all the other important things. It is so key to make sure you're comfortable in a trade that when it goes into DD you are not getting nervous at the red number. It is a skill to learn but can definitely be learned
The better my investment, the better my risk management.
What you can afford to lose is my opinion. I think this will help deal with the loss aspect of trading.
If you can't spot the liquidity then you are the liquidity.
In the beginning don't invest too much money. Few 100 bucks is enough. Even lower than that. Once you start making money on consistent basis you can invest big amount.
Oct 09 at 19:08
Most financial planners advise saving between 10% and 15% of your annual income. A savings goal of $500 amount a month amounts to 12% of your income, which is considered an appropriate amount for your income level.
The investment must be reasonable, and you must understand that the amount you are investing is likely to be lost.
Another point would be that it must be an amount that allows for sensible risk management. If your account is too small to allow you take a 1% risk then wait until you have more disposable income to start with.
If you can't spot the liquidity then you are the liquidity.
