Friday, May 29

Is it possible for an amateur trader to make sustainable profits ?

Every traders wants to trade Big with a well funded trading capital of at least 10 lakh but very few are able to achieve this feat. Its often said Making the First Million is the most difficult thing once achieved money will flow in your coffers.

Trading small account is very difficult when compared to account having large trading capital, As such when your trading capital is large traders are buffered against mistakes, unexpected losing streaks, and sometimes even bad traders, but small accounts have no such buffer. When trading with large account trader can test n number of trading strategies in live market but small account we have no such luxury.
In Reality 80% of traders trade with small account from 30K-70K which is just enuf to cover margin of the derivatives traders is trading into. Trading with small trading capital requires "Very Very Strict risk management and money management " , not having it will lead to Trading account blowout and will throw traders out of market.  Trading with small capital, trader has no buffer for unexpected moves in market . Recent crash in Nifty and Mid and Small cap stocks  had blown out many small trading accounts.

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