Jump to content

Welcome to the new Traders Laboratory! Please bear with us as we finish the migration over the next few days. If you find any issues, want to leave feedback, get in touch with us, or offer suggestions please post to the Support forum here.

  • Welcome Guests

    Welcome. You are currently viewing the forum as a guest which does not give you access to all the great features at Traders Laboratory such as interacting with members, access to all forums, downloading attachments, and eligibility to win free giveaways. Registration is fast, simple and absolutely free. Create a FREE Traders Laboratory account here.

timsingapore

Can Trading Starts Small and Grow Big?

Recommended Posts

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

Share this post


Link to post
Share on other sites

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.....!!

Share this post


Link to post
Share on other sites
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:

Share this post


Link to post
Share on other sites
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.

Share this post


Link to post
Share on other sites
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.

Share this post


Link to post
Share on other sites
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

Share this post


Link to post
Share on other sites

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.

Share this post


Link to post
Share on other sites

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.

Share this post


Link to post
Share on other sites
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. 

Share this post


Link to post
Share on other sites

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.

Share this post


Link to post
Share on other sites

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. 

Share this post


Link to post
Share on other sites

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.

Share this post


Link to post
Share on other sites
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.

Share this post


Link to post
Share on other sites

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. 

Share this post


Link to post
Share on other sites

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.

Share this post


Link to post
Share on other sites
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. 

Share this post


Link to post
Share on other sites

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. 

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.
Note: Your post will require moderator approval before it will be visible.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.


  • Topics

  • Posts

    • Date: 29th March 2024. GBPUSD Analysis: The Pound Trades Higher But For How Long? The global Stocks Markets are closed due to Easter Friday (Good Friday). The NASDAQ continued to follow the sideways trend while other indices again rose. The SNP500 reaches an all-time high, but the NASDAQ remains under pressure from Tesla, Meta and Apple. The Euro continues to trade lower against all major currencies including the US Dollar, Euro and Japanese Yen. The British Pound is the best performing currency during this morning’s Asian session. However, investors are largely fixing their attention on this afternoon’s Core PCE Price Index. GBPUSD – The Pound Trades Higher but For How Long? The GBPUSD is slightly higher than the day’s open and is primary due to the Pound’s strong performance. At the moment, the British Pound is increasing in value against all major currencies. However, the US Dollar Index is also trading 0.10% higher and for this reason there is a slight conflict here. If investors wish to avoid this conflict, the EURUSD is a better option. This is because, the Euro depreciating against the whole currency market avoiding the “tug-of-war” scenario. The GBPUSD is trading slightly lower than the 2-month’s average price and is trading at 49.10 on the RSI. For this reason, the price of the exchange is at a “neutral” level and is signalling neither a buy nor a sell. The day’s price action and future signals are possibly likely to be triggered by this afternoon’s Core PCE Price Index. Analysts expect the Core PCE Price Index to read 0.3% which is slightly lower than the previous month but will result in the annual figure remaining at 2.85%. The PCE rate is different to the inflation rate and the Fed aims for a rate between 1.5% to 2.00%. Therefore, even if the annual rate remains at 2.85%, as analysts expect, it would be too high for the Fed. If the rate increases, even if only slightly, the US Dollar can again renew bullish momentum and the stock market can come under pressure. This includes the SNP500. Investors are focused on the publication of data on the UK’s gross domestic product (GDP) for the last quarter of 2023: the quarterly figures decreased by 0.3%, and 0.2% over the past 12-months. This confirms the state of a shallow recession and the need for stimulation. The data, combined with a cooling labor market and a steady decline in inflation, increase the likelihood that the Bank of England will soon begin interest rate cuts. In the latest meeting the Bank of England representatives did not see any members vote for a hike. USA500 – The SNP500 Rises to New Highs, But Cannot Hold Onto Gains! The price of the SNP500 rises to an all-time high, before correcting 0.33% and ending the day slightly lower than the open price. Nonetheless, the index performs better than the NASDAQ which came under pressure from Tesla, Meta and Apple which hold a higher weight compared to the SNP500. For the SNP500, these 3 stocks hold a weight of 9.25%, whereas the 3 stocks make up 14.63% of the NASDAQ. The SNP500 is also supported by ExxonMobil’s gains due to higher energy prices. The market will remain closed on Friday due to Easter. However, the market will reopen on Monday for the US and investors can expect high volatility. Investors will also need to take into consideration how the PCE Price Index and the changed value of the US Dollar is likely to affect the stock market next week. Always trade with strict risk management. Your capital is the single most important aspect of your trading business. Please note that times displayed based on local time zone and are from time of writing this report. Click HERE to access the full HFM Economic calendar. Want to learn to trade and analyse the markets? Join our webinars and get analysis and trading ideas combined with better understanding on how markets work. Click HERE to register for FREE! Click HERE to READ more Market news. Michalis Efthymiou Market Analyst HFMarkets Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in FX and CFDs products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.
    • MT4 is good and will be good until their parent company keep updating the software, later mt4 users will have to switch to mt5.
    • $SOUN SoundHound AI stock at 5.91 support area , see https://stockconsultant.com/?SOUN
    • $ELEV Elevation Oncology stock bull flag breakout watch , see https://stockconsultant.com/?ELEV
    • $AVDX AvidXchange stock narrow range breakout watch above 13.32 , see https://stockconsultant.com/?AVDX
×
×
  • Create New...

Important Information

By using this site, you agree to our Terms of Use.