A Great Starting Point
Where you decide to trade can make a bigger difference than you may think. Most will choose to begin trading with a rather modest amount. Perhaps, a couple of hundred dollars at most, some a lot less. When trading with this sort of capital, lot size plays a very important role. This is why FTX and Bybit are definitely the best options in my opinion, as the minimum trade is only a dollar. Being able to trade such small amounts makes trading accessible for pretty much everyone. Another very important benefit of trading on these platforms is lower leverage options. Many platforms only offer leverage from 5X and up, which in my opinion is securing profitability. A new trader will most likely get liquidated trading these margins, ultimately securing profitability for the platform. FTX and Bybit both offer leverage from as low as 1X, which is where I would suggest all new traders begin trading.
Removing Barriers Of Entry
Having access to such services ultimately allows individuals to begin trading without capital. One could simply begin trading with earnings from free sites such as Publish0x, Noise.cash, faucets, and other free earning platforms. As mentioned in a previous post, if you have never traded before, rather put in the time to learn and practice first. Signing up with StormGain will ensure a $3 bonus, as well as access to a demo account. Practicing on a demo account is absolutely imperative in my opinion. A demo account will give you the “feel” of the different leverage options. You really do not want to be learning the ropes with real money!
It’s All About Compounding
Building up an account is exactly that, you have to resist withdrawing profits. I know it’s tempting to withdraw your profits to buy altcoins or build up your BTC holdings but if you want to grow a trading account then you have to make use of compounding. This is way more powerful than many realize. Personally, I like to scalp trade and will also try to maximize a good breakout trade that may come along. If I can consistently make 1% percent per day, I am happy.
There will be days where I don’t make it and others where I exceed it. However, establishing this average is extremely powerful over the long term. Surpassing this target is even better and often happens. Let me roll out some numbers so that you can begin to see how diligent, effective trading can pay off.
A $400 Starting Point
Let’s say you start trading with $400 and continue trading for a year, maintaining the abovementioned daily target, the returns would be pretty good. Your final account balance would be just below $10K! This is largely due to compounding and one can extrapolate any figure forward. Bulking up your starting capital to $4K could easily become $100K and so on. However, being able to maintain consistency comes with practice and experience. Just like pretty much everything else in life, trading is a journey. This is all theoretical and can in some cases produce less, while in others, produce more. You get the idea of what is possible if you can be successful on a consistent basis and continue to compound.
Anyone can begin trading but not everyone can be successful. This is the big difference that separates the 90% from the 10% in the world of trading and financial markets. Statistically, approximately 90% of market participants lose money, while a very small minority consistently extract gains from the market. Being part of that minority will not come easy, so count the cost before embarking on your own trading journey.