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timsingapore

Can Trading Starts Small and Grow Big?

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Dear friends of trading

 

Sometimes I am confused and have this question in mind.Can retails traders start trading in a humble way,such as on part time basis or small capital,then gradually grow it into something like an established profitable business?

 

The answer is definitely yes if we're talking about traditional business.But is it the same in trading?Perhaps due to the influence of media which make me think that if I am not someone working as a professional trader or dealer,the best I can get from trading is just an extra income for pocket money because consistent profitability is something that can only achieved by the pro,and it's very difficult for retails trader.

 

To some extents I think it makes sense because no matter how many books we read and workshop we attend,we still lack of the environment(trading hardware,software and surrounded by other pro traders), knowledge and interaction with the market that professional traders have.

 

Can we,retails traders, turn our trading into established business?

 

Please give me some guides and advice.Thank you very much!

 

Confused trader

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Trading can be whatever you want to make it..... you can start small and grow as large as you want. The biggest difficulty with trading is that a person has to make all of the decisions and mistakes cost capital. There is a tough road ahead if you allow your capital to erode. My approach is to study, test, learn continually as sometimes Mr Market decides to change the game and steal our money. Best of luck.....!!

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Dear friends of trading

 

Sometimes I am confused and have this question in mind.Can retails traders start trading in a humble way,such as on part time basis or small capital,then gradually grow it into something like an established profitable business?

 

The answer is definitely yes if we're talking about traditional business.But is it the same in trading?Perhaps due to the influence of media which make me think that if I am not someone working as a professional trader or dealer,the best I can get from trading is just an extra income for pocket money because consistent profitability is something that can only achieved by the pro,and it's very difficult for retails trader.

 

To some extents I think it makes sense because no matter how many books we read and workshop we attend,we still lack of the environment(trading hardware,software and surrounded by other pro traders), knowledge and interaction with the market that professional traders have.

 

Can we,retails traders, turn our trading into established business?

 

Please give me some guides and advice.Thank you very much!

 

Confused trader

 

Hi,

 

Anybody can trade part-time with a small trading account if that's what you're asking. Yet, most will not be profitable regardless if they do it part-time or full-time. Simply, yes anybody can start trading but only a few will be able to do it profitably.

 

As for the question if trading is a business...the answer should be obvious. If you're profitable, its your sole source of income, pays your bills, you pay taxes along with doing other things like any other business (e.g. business account with the bank)...

 

Trading is a business (trading for a living). In fact, if you've had prior successful entrepreneur experience in another profession, odds are high that you're going to approach your trading from the business side. Thus, if trading is just a part-time gig and/or not your sole source of income, its not a business.

 

Yeah, most retail traders "lack" the same environment that professional traders have but that can be fixed if the retail trader forms the same environment with other retail traders. Yet, most (not all) retail traders prefer the "lone soldier" environment instead of approaching it like most professional traders.

 

By the way, I think its funny that some (not most) retail traders wish they were in a professional trading environment and most (not few) professional traders wish they were in a retail trader environment. :doh:

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Trading can be whatever you want to make it..... you can start small and grow as large as you want. The biggest difficulty with trading is that a person has to make all of the decisions and mistakes cost capital. There is a tough road ahead if you allow your capital to erode. My approach is to study, test, learn continually as sometimes Mr Market decides to change the game and steal our money. Best of luck.....!!

 

Thank you for your advise and also reminded me two of the most challenging part of trading:accountability and continued learning.

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Hi,

 

Anybody can trade part-time with a small trading account if that's what you're asking. Yet, most will not be profitable regardless if they do it part-time or full-time. Simply, yes anybody can start trading but only a few will be able to do it profitably.

 

As for the question if trading is a business...the answer should be obvious. If you're profitable, its your sole source of income, pays your bills, you pay taxes along with doing other things like any other business (e.g. business account with the bank)...

 

Trading is a business (trading for a living). In fact, if you've had prior successful entrepreneur experience in another profession, odds are high that you're going to approach your trading from the business side. Thus, if trading is just a part-time gig and/or not your sole source of income, its not a business.

 

Yeah, most retail traders "lack" the same environment that professional traders have but that can be fixed if the retail trader forms the same environment with other retail traders. Yet, most (not all) retail traders prefer the "lone soldier" environment instead of approaching it like most professional traders.

 

By the way, I think its funny that some (not most) retail traders wish they were in a professional trading environment and most (not few) professional traders wish they were in a retail trader environment. :doh:

 

Forming a trading group with other retails traders is really a good idea that I never thought of.I think it proved again what u said is true about most of the retails traders are lone soldier,including myself so i was stuck in that "independent mood".

 

Thank your for your advise and inspiration.

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Dear friends of trading

 

Sometimes I am confused and have this question in mind.Can retails traders start trading in a humble way,such as on part time basis or small capital,then gradually grow it into something like an established profitable business?

 

The answer is definitely yes if we're talking about traditional business.But is it the same in trading?Perhaps due to the influence of media which make me think that if I am not someone working as a professional trader or dealer,the best I can get from trading is just an extra income for pocket money because consistent profitability is something that can only achieved by the pro,and it's very difficult for retails trader.

 

To some extents I think it makes sense because no matter how many books we read and workshop we attend,we still lack of the environment(trading hardware,software and surrounded by other pro traders), knowledge and interaction with the market that professional traders have.

 

Can we,retails traders, turn our trading into established business?

 

Please give me some guides and advice.Thank you very much!

 

Confused trader

 

Hi, thanks for the article. I have written on a similar topic here:

 

http://www.traderslaboratory.com/forums/forex/18608-trading-small-account-sizes.html#post193800

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Traders can work with a small account, they will have to trade a small amount.

 

Some people suggest that a trader uses 5 per cent of his account. so we can figure out what the trade amount should be with simple arithmetic.

 

Myself.. when working with a new technique, I isolate $100 for that account until I am confident.

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Trading small accounts requires strict risk control and money management as there is no buffer against errors or any unexpected losses. For example, if a trading account only pays the required margin of $500 and loses $600, the account will not be able to trade until additional funds are deposited.

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On 10/10/2011 at 2:00 PM, timsingapore said:

Dear friends of trading

 

Sometimes I am confused and have this question in mind.Can retails traders start trading in a humble way,such as on part time basis or small capital,then gradually grow it into something like an established profitable business?

 

The answer is definitely yes if we're talking about traditional business.But is it the same in trading?Perhaps due to the influence of media which make me think that if I am not someone working as a professional trader or dealer,the best I can get from trading is just an extra income for pocket money because consistent profitability is something that can only achieved by the pro,and it's very difficult for retails trader.

 

To some extents I think it makes sense because no matter how many books we read and workshop we attend,we still lack of the environment(trading hardware,software and surrounded by other pro traders), knowledge and interaction with the market that professional traders have.

 

Can we,retails traders, turn our trading into established business?

 

Please give me some guides and advice.Thank you very much!

 

Confused trader

Of course you can turn trading into source of stable income however I don't know ways to make it quick. I spent three years with Hotforex before I found the system that has positive edge, however it was thorny path had to lose some money which I consider as essential investment. 

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Yes i agree we can make a living even by trading with small amounts provided we know what we are doing. It only takes time to master the skills yet we can learn them honestly.

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Actually starting with small amount of money if you don't have trading skills is the only way to avoid large loss because during initial stages of studying you will have more losses than wins and it's important to reduce exposure during this time by trading small lots. 

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There are several strategies for day trading; some of the best strategies are - Momentum Trading Strategy, Breakout Trading Strategy, Moving Average Crossover Strategy, Gap Trading Strategy and "Risk" Reversal Trading Strategy.

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On 3/29/2022 at 11:09 AM, fxeconomist said:

Actually starting with small amount of money if you don't have trading skills is the only way to avoid large loss because during initial stages of studying you will have more losses than wins and it's important to reduce exposure during this time by trading small lots. 

Small amount starts have many benefits like one of them is that we can test the broker's further processes like withdrawal etc which we usually cannot test using their demo account.

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Trading can be whatever you want to make it. You can start small and grow as large as you want. The biggest difficulty with trading is that a person has to make all of the decisions and mistakes cost capital. There is a tough road ahead if you allow your capital to erode. My approach is to study, test, learn using various sources - books, forums, Hotforex technical analysis webinars as sometimes Mr Market decides to change the game and steal our money. 

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I guess taking calculated risk we can make our account grew into good balance over the passage of time yet it requires patience and avoiding over trading and over leveraging the trades.

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On 4/12/2022 at 11:59 PM, aimhi said:

I guess taking calculated risk we can make our account grew into good balance over the passage of time yet it requires patience and avoiding over trading and over leveraging the trades.

Yeah that's why I tend to trade fixed lot size I increase or decrease it periodically depending on account equity. It helps me to avoid mood swings because I don't go into gambling by raising stakes, hence I can avoid large losses. 

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Absolutely, trading can start small and grow over time. Many successful traders begin with a modest capital and gradually build their accounts through careful risk management and strategic trading. Starting small allows you to gain experience, learn from mistakes, and refine your strategies without risking significant amounts. As your skills improve and your account grows, you can increase your position sizes and potentially achieve larger profits. 

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