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How Much Capital Should You Start With In Trading?

How Much Capital Should You Start With In Trading?

I’d be a millionaire if I had a rupee for every time someone asked me this question. Capital is necessary to begin trading, but the amount is not the issue. What matters is that you begin making transactions.

Capital is a secondary consideration in the early stages. You must first improve your trading abilities. Let’s say you have Rs. 5000 and are wondering how you’re going to trade with such a small amount of money. If you lack the necessary skills, you will undoubtedly blow your account, whether it is worth Rs.5000 or Rs.5 lakhs. To begin, practise trading with small amounts of money.

If you can’t make money from low capital, what makes you think that you can make it with big capital. “

POSITION SIZING:

The next thought that comes to me is about position scaling. Start with one quantity, because the purpose at this point is not to gain money, but to make profitable deals. Take 100 trades to examine how you manage your trades. Learn how to locate the greatest setups and how to trade them profitably first. Finding the best setups is not difficult.

It can be done by any Tom Dick Harry with basic technical analytic skills. The tricky part is taking the trade and turning a profit. This is known as “trade management.” Trade management is also an important aspect of the trading adventure, and we will publish a separate blog about it in the future.

PAPER TRADING:

The next thought that comes to me is about position scaling. Start with one quantity, because the purpose at this point is not to gain money, but to make profitable deals. Take 100 trades to examine how you manage your trades. Learn how to locate the greatest setups and how to trade them profitably first. Finding the best setups is not difficult.

It can be done by anyone like Tom Dick Harry with basic technical analytic skills. The tricky part is taking the trade and turning a profit. This is known as “trade management.” Trade management is also an important aspect of the trading adventure, and we will publish a separate blog about it in the future.

Paper trading, in my opinion, is the most fraudulent activity. This could be considered an assertive statement. But believe me when I say that paper trading won’t get you anywhere. because it incorrectly moulds you. Let me explain how. There are no emotions involved in paper trading because no real money is at stake. Aside from money, experienced traders have the same emotional condition.

And you keep this mindset until you start working for actual money and reality hits you hard, leaving you in a catastrophic predicament. In the trading sector, emotions are not required. But first you have to get through all the emotional phases to get to no emotion state. And that’s why paper trading is a BIG NO!!

Start with 1 quantity but never do paper trading

I know the blog’s title is about how much money you should start with, but I haven’t written anything about it. Instead of capital, I’ve shifted your attention to more vital things to look for. because, in my experience, it’s a business where, with knowledge and talent, you can grow your capital from $1,000 to $15,000 over time. But if you don’t know anything, 1 lakh will become $0.

Scale up after profitability

Yes, after losing over 3 lakh rupees in 2012, I started with 5000 rupees. It’s evident that I don’t know how to trade, and risking a large sum of money will only result in large losses.

So I started with 5000 and tried various strategies and techniques. It took a bit for me to discover my mojo, but once I did, I was consistently generating 200-300 rupee profits on every trade.

Then I increased my trading volume. Let me tell you, scaling up takes a long time. From just 5000 rupees, I made a profit of +5 lakhs over the next four months. I was taking calculated chances because I could only lose 5000 if I made any errors. This kind of performance is only possible with limited resources and the correct strategies. The point is that you don’t need a lot of money. In reality, starting with a large sum of money is riskier in trading.

So, if you’re wondering how much capital you should have to trade, my response is straightforward. If you have 5000, you will have enough to begin your quest.

START SMALL AND GROW HUGE !!

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