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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38 COMMENTS

  1. 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……

  2. 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.

  3. 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%

  4. 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.

  5. 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?

  6. 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

  7. 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..

  8. 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.

  9. 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.

  10. 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 .

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