Do you have a small account? Are you limiting your earnings owing to small bank account? You require money and big accounts in order to make money! Isn’t? Beginning your career as a trader with a small account will prove to be fruitful for you in the future. Wondering how? Let us unfold.
- Start with a small account:
First and foremost, if you will start with a small bank account then you will be minimising your risks for huge loses. Trading is a profession in which traders learn and trading is indeed a learning curve. Suppose, your account has a 2k amount then if you suffer loses then calculated risk is just 2k. However, if you start with a 50k amount then you will suffer from huge loss. In the beginning, trading is all about making right strategies thereby making an edge over others along with consistency which comes with time.
As you are able to view the success rate is increasing you can invest big. Although, we suggest that you must start with a small amount every time which will prevent you from suffering huge blow in terms of money. This is one of the advices from our experts. For more such valuable advice consult our advisory experts.
- Risk Involved:
If you are concerned about the risk factor then you must first calculate the risk involved. For example, if you have calculated risk on buying of 100 shares is 2 INR then you can go for it and if the calculated risk less than 1INR then you can even go for buying more than 200 shares.
Next thing which you must consider is the margin. The margin can be calculated on the basis of how much risk per trade is involved in a particular trade. You can grow your money if you analyse your margin for every trade and what benefits you are getting.
For a trader it is vital to buy and sell the shares at the right time so that the trader can take the maximum advantage and make more money.
In order to make money in trading, people generally start chasing and start involving emotions which is not the right kind of trading. Traders generally suffer from FOMO as the trader does not want to miss out on the opportunities of huge trading. FOMO stands for fear of missing out which occurs most commonly in financial trading. In fact, traders chase without understanding the market trends which is mostly done by inexperienced traders. Inexperienced traders just buy the shares and sell them when they are up for a day and sometimes sell the shares when it is down on a particular day to avoid losses. However, trading is not about incorrect assumptions.
It is very important to identify the risks involved, proper timing and leverage that you are earning from a particular trade and not to chase trading. You will understand the power of risk management when you will do it on daily basis and before purchasing any stock. One essential piece of advice from our end is learn how to trade properly and stop chasing and gambling. This will make you a successful trader within a short duration and also you will be able to make money. Want to know more just let us know. We offer amazing courses on stock market trading and give special advice as well.