Trading works much better when your start-up capital is not too small. Trading a smaller account can be frustrating and discouraging. It is OK to start small but you don’t have to remain small. I have published an episode on my podcast titled “How to grow a smaller trading account” Listen to it and apply those tips to grow your account.
Today’s post is about the benefits of trading a bigger account. If you are trading a smaller account, don’t be discouraged, read on and prepare yourself for when you have a bigger account, unless you plan to remain just small.
Trading a bigger account is amazing and less stressful. This is provided you have worked on yourself and you can manage yourself and your funds well. If you cannot manage a smaller account, you cannot manage a bigger one. Both accounts require the same trading psychology, discipline, money management and self-control. Below I share 3 benefits of trading a bigger account.
More Money Gives You More Options.
Generally speaking, when you have more money, you have more options for what to eat, what to wear, where to live, where to go for holidays, what to drive etc. Trading is the same. If you have more trading capital, you have more options for what you can trade. Other financial instruments are not suitable for smaller accounts.
You Can Get Away With A Few Number Of Pips
When you have learned how to trade, work on getting more trading funds to create a better trading environment where you don’t care much about chasing pips. Even if you can take 10 pips, you still make good money because you can trade a bigger volume which has a bigger pip value. Also, understand that making 100 pips does not mean you are making more money than someone who makes 10 pips, it is all in the pip value.
Percentage Gain Equals To More Money
Let’s say you make 20% from $100, that would be $20, but if you make 10% from $2000, that would be $200 for obvious reasons of course. Trading a bigger account allows you to get away with small percentage growth which is easier to sustain in the markets.
It takes effort to sit down, analyze the markets and place a trade. When you have invested more, you also feel that your efforts are rewarded. Thank you for reading. If you found value in this post, kindly share it with your peers and don’t forget to subscribe. Happy trading and stay tuned for more practical tips.
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