One of the most common excuses newbies make when losing is It is hard to trade with just $100. If I had $10,000, I would trade differently, manage risk properly, and be rich. This is a fatal illusion. The truth is If you can not manage $100, you will burn through $10,000 in a heartbeat.
🔸 Capital does not make you smarter; it simply amplifies the results of your actions.
If you have Good Skills, Large capital makes you rich faster.
If you have Bad Skills, Large capital just helps you... go bankrupt faster and more painfully.
👉 Imagine: You can't ride a bicycle, but you demand to drive an F1 race car. A crash is inevitable.
🔸 Do you think trading $100 and $10,000 feels the same? Wrong!
With $100, a 10% loss ($10) 👉 You shrug it off, grab a coffee, and stay calm to recover.
With $10,000: A 10% loss ($1,000) 👉 You sweat, lose sleep, hands shake, leading to panic and irrational decisions.
👉 The larger the capital, the heavier the psychological burden. If you have not forged nerves of steel with small capital, big capital will crush you.
🔸 You despise turning $100 into $120 because $20 seems like peanuts. You want to Allin for X5, X10 gains. But remember that Warren Buffett averages about 20% per year.
If you lack the patience to make $20 from $100, you will never possess the capability to make $2,000 from $10,000.
The first mission is Capital Preservation, the second is Performance (%). The absolute dollar amount does not matter.
🔹 Be grateful you have small capital right now. Your stupid mistakes only cost you a few bucks in tuition.
Do not wish for more money to trade. Wish for the skill to trade. When you are skilled, turning $100 into $1,000 is inevitable. When you are unskilled, even $1 million will go to zero.
Are you waiting to get rich to learn risk management, or learning risk management to get rich?
News is for reference, not investment advice. Please read carefully before making a decision.