It is clear which 2 aspects are paramount to succeed in financial markets:
Capital:The greater the amount of money in the account, the better the availability to correctly manage the money while limiting risk to the maximum and with controlled leverage.
The more capital you have, not only will you be able to cover a greater number of markets (and I'm not talking about diversification but about accessing those that require more money to open a position) but you will also be able to afford to fail without that capital being affected.Experience: vital to distinguish which opportunities have a higher probability of success. This, together with a smaller risk per trade (ideally 0.5% at most), minimizes losses when they occur, assuming that we can have several negative trades before successfully entering a trend.
Hence the importance of losing very little capital when we end up in the red.
Little capital lost is easily recoverable by letting the trend run in our favor.That small percentage of capital at risk is due to the fact that if you risk more than 2% in each trade (some risk much more) and we have a losing streak of 6 trades, for example (very feasible), we would already lose 12% of the total capital and although it may seem 'little,' it will be very difficult to recover.
Most traders do not last long in the market because they do not know how to manage capital. Moreover, they exhaust their capital before acquiring the necessary experience to be consistent.
So prioritize management over the % of success, as it is useless to have 20 consecutive positive trades with little profit if a single trade wipes out all the gains and also takes a big 'bite' out of your initial capital.