Ep 147: Why Trading Small or Less Beats Trading Large
★ SUMMARY ★
In this episode I’ll show you why trading a smaller amount of shares is more beneficial for you, especially if you’re just getting started.
Why we want to trade large
People always want to trade a large amount of shares, because human beings are greedy. We want to make more money, change our lifestyle, and that’s why we usually want to trade big. We think trading is going to solve all our financial problems, and we want to get those results immediately.
Also we usually believe we are better than we truly are, so we trade large, thinking that nothing can go wrong, because we are great traders, which isn’t always true.
However, when it comes to trading, growth happens periodically, it’s a step by step process, and it takes time. It doesn’t happen overnight. That’s why trading large and expecting to get rich quick doesn’t work.
There are a lot of issues that come when you trade large. For example, emotional issues, personal management problems, etc.
Why starting small is better
Starting small and growing step by step is actually a much better approach, because this way you can learn how to manage the money that you make a lot better, meaning that you’ll be able to preserve that capital for a longer period of time.
Another reason trading small is better, is because when you trade a large amount of shares, if that stock pulls back, you are going to have a very big loss. Whereas if you trade a small amount of shares, that pullback won’t be as painful, and you can always add to that position later, when the opportunity comes.
Another benefit of trading small is that it allows you to build the experience needed to become a great trader, a little bit at a time, without risking too much.
When you’re just starting you’re not ready to trade large, because you don’t have the experience you need. And more than likely you’re going to lose all your money. So start at the beginning, learn to trade right first, and then start trading larger over time, as you become more experienced.
Posted at: http://tradersfly.com/2017/08/ep-147-trading-small-beats-trading-large
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"I Know Kung fu" – Neo. That will be nice if we can learn as fast as him ! Great video.
Great video and points Sasha ??
Sasha you are the kind of teacher i need. thank you very much.
Watching this video made me Subscribe….. I felt like a nail and you where the hammer, hitting straight on every time… This video is exactly what i'm doing and going through now……
Very nicely explained sir
Getting into investing is like a new hobby to me. I am so excited about what I know so far and what I don't as well. There is so much for me to discover, to learn and to try things myself. At times it could be frustrating and nerve wrecking because it is my own money I play with, but channels like this give me confidence that I too can master investing. Thank for your valuable and honest knowledge on this subject.
looks like you're sponsered by trading platforms. smaller investments = more platform fees. if i'm trading $100 a month into 10 different shares every month, at $9.95 platform fees, that's 10% off my investment every month. If i invest $1000 a month into ONE share a month, that's just 1%
Videos like this and an instructor like Sasha is the future of education and it proves that school education is a waste of money and time. Thank you so much for all your video you are a good man.
I can really sense you’re a martial artist in this one. Respects and thanks for the lessons!
How the hell you can wrote in reverse
I needed to hear this!
If you demonstrate class and a clean lifestyle, then a mansion is just an abstraction
Very well said Sasha..u hit the nail on the head I went through same feelings n challenges when i started off. Wish I seen this long time ago. Great content and presentation skills?
what broker can i use for $500?
Ive made more gains by lowering my risk and not being Greedy.Small Fish are sweet.
Great Video Sasha
the only problem is that the commission is going to be crazy high on per share basis.
5 shares of AMAZON, only 5 share ?
Affirmative… when I started in stock trading my capital is larger for a beginner thus, I have encountered multiple scenarios where
frequent losses that 35 percent of my capital lost. In addition, I entered FX that resulted massive losses but I have no plan to quit so I started exploring my trading knowledge thru on line tutorials, reading different trading tips . Now I reduce my equities
then applied the trading guide extracted from different resources gradually I started to be a defensive trader…Thanks
just loving this lesson bro , that's a fact in trading for everyone
Man, I swear.. I have never seen anyone more calm and more neutral while giving advices.. You do explain everything's good and bad side so that we can decide for ourselves.. You don't spoon feed us… Or don't push your own preferences on us. That's the best part of you..
Thank you for this video. I am brand new to slowly starting in this. Industry.
You're a good teacher i can see that I'm subscribing right now lets take my trade to another lever !
I just subscribed your channel because of your plain and simple method of teaching. Thank You!
I agree, small trades are beneficial, but the fees are not. Lose more in fees than you make.
I like you because you are a simple explainer. you are speaking slow and not using all that damn lingo I don't understand yet. When the lingo comes I hope you explain it slowwwwwww. Thanks. you are a good teacher.
Ok thanks for the advice
I'd buy here and sell…
Experience; Do you know what went the opposite of the way you thought the trade would go last time?
Technologies that give you experience, networks, a mind of God, and Mentors.
Thank you for your great advice
Great video! I realized when I first started I was trading too large! I need to start small!
The earnestness of this video and the logic behind it with your way of explaining things thoroughly has earned you my subscriptions. Thanks for keeping it real but optimistic. Educating myself is causing me to see the possibilities before the experience of actually doing it. I've been having thought of wanting to start trading with larger percentages of capital. This was a good reminder and confirmation of sorts to take it slow.
It's good video clip to learn to start a small mount of money to put to the stock market.
I guess life would be very boring if we didnt have to learn anything. If we were born already having all the skill sets to trade life would not be interesting, every day would just be a pointless drag .
but if you bet on the smaller stocks and make 50% than you can take your profits and invest further. I agree the small penny stocks are extremely volatile, but no risk no gain ?
you are the best mentor for me. Thank you very much
Man you speak to my soul.
there is a great saying i love "if you win a million dollars, better become a millionaire soon or you will lose it"