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Does having adequate account size help make a success?

  • #81
  • Apr 11, 2016 5:42am Apr 11, 2016 5:42am
Success not depends on account size a good trader makes good return from reasonable amount of capital and bad trader can waste a large account in less time. Big account supports skilled traders to make high profits , without skill no body can get benefit of his money effectively.
  • #82
  • Apr 11, 2016 7:33am Apr 11, 2016 7:33am
Quoting DonaldB
Interesting schedule, MoneyD It is necessary to remember for the overall development. Except that, it seems to me you are focused, not on. Risk - is not just a number. There are many factors that affect it from correctly put a stop-loss to the volatility of the market. I think that is more correct to think of working strategy and then adjust it at interest risk from 1 to 3%
Correct position sizing can normalize risk for any volatility and other stop loss setting criteria, and naturally your returns would be commensurate with your risk, but luck and randomness has also a lot to do with your performance or return, for instance that graphic shows that 2 traders having the same win loss and RR , and hence same profit factor, can have disparaging returns when looking at the extreme, one trader can make 3800% and the other one can only make 78% over the course of the 1000 trades with compounding.
  • #83
  • Apr 12, 2016 12:52pm Apr 12, 2016 12:52pm
Quoting MoneyD
{quote} Correct position sizing can normalize risk for any volatility and other stop loss setting criteria, and naturally your returns would be commensurate with your risk, but luck and randomness has also a lot to do with your performance or return, for instance that graphic shows that 2 traders having the same win loss and RR , and hence same profit factor, can have disparaging returns when looking at the extreme, one trader can make 3800% and the other one can only make 78% over the course of the 1000 trades with compounding.
Actually, the bold part is not quite accurate, after seeing a more updated graphic by the author, it is clear that all the simulations do not have the same profit factor, it's just that the mean for all simulations approaches the targeted profit factor, but still it shows how luck / randomness can have significant effect on winning/loosing streaks, that in turn can have a lot of affect on the bottom line when compounding with a constant risk % is in play.
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  • #84
  • Apr 13, 2016 7:00am Apr 13, 2016 7:00am
In my opinion, having a decent starting account size ($500-1000) has a psychological effect especially depending on the lot size you are trading. For me, I started up with a broker who has the smallest trade-able size as micro lot. As a result, if I were to start with $100 in my account, every trade would be leveraged to at least 1:10 and probably more depending on the currency pair being traded.

So for me, I have put in $1000 and do not use much more than 1:5 leverage (I do not open more than 4 positions at any given time using a scalping strategy). So far I am 6% up on my account after about 3 weeks since I started with a trade success rate of 90% on about ~95 trades. I would say that having a larger account size has helped me psychologically.

PS - I am trading from Australia
  • #85
  • Jul 20, 2016 9:14pm Jul 20, 2016 9:14pm
Quoting Stubborn
{quote} This is what you have always advertised. That you made 88 million dollars from $200. This is a eye catcher for newbies/unsuccessful traders. People who want to literally mint money without any serious hard work or putting effort. {quote} This is the bait to lure them to you. Hidden message(advertisement) that you are open to teach for a fee.
As of yet I have not seen even one of DP`s students slam him on FF......He makes more valuable, thought provoking points then anyone else here.....I for one wish he would post more often.
  • #86
  • Jul 20, 2016 10:10pm Jul 20, 2016 10:10pm
Quoting mfoste1
I think that account size does matter. Smaller accounts mean you are inherently forced to take on more leveraged risk, due to margin requirements. So lets say that a trader is trying to start with $500 and he wants to take on $5 in risk on all trades. That means he can loose 100 times in a row and he will be at zero. Another trader, starting with $5000 wants to take on the same amount of risk, $5 per trade. That means he can loose 1000 times and be at zero.


Very valuable lesson here!!

This gives the trader the emotional freedom to feel less pressure when trading, and trade more freely because the trader is allowed to trust his inner instincts and system. Even if price moves against him, having the ability to feel comfortable closing a losing trade and being able to make up for it at a later time, removes a great deal of pressure, allowing the trader to remain focused and not worried about losing his account.

Having that freedom is so important but also the discipline to remain with a consistent trading system with regards to size and risk management when trading.
Learn, a forex trader must, unlearn and relearn he will.
  • #87
  • Edited 7:07am Jul 21, 2016 5:28am | Edited 7:07am
Quoting aviz12
Hello Friends, Especially Professionals. Do you think having a good account balance helps alot in the long-run ? Do you think its better to trade small with good account balance.. than rather trading huge with less account balance. I would appreciate your advises. Thanks.
Are you asking this question as an INVESTOR? Or as a wannabe trader/PartyPoker thrill seeker.
Otherwise your question is unanswerable. Which accounts for the diversity of answers above,
because of the assumptions posters have had to make about what you are actually asking.

Successful trading depends on which of these characters you are.
I can only comment as an"Investor"
As such preservation of capital trumps speculative reward. So it doesnt matter if your account is $1000 or $1mio.
EXCEPT in the context of the quality of your broker choice and the terms of trade you can get
(ie the spread/execution/transaction costs that go with that.)
Its all about Risk v RoI (Return on Investment). (%).. ​
Risk appetite is a function of VaR in relation to your overall assets.
And Risk is a function of leverage X strategy robustness. Leverage is easy.
Strategy Robustness is too highly complicated and multifaceted to comment speculatively on here..

And NONE of this drills down to the detail or profile or dynamic of the Strategy you use.


Hope of help.
  • #88
  • Last Post: Jul 21, 2016 12:33pm Jul 21, 2016 12:33pm
I started with a small account of $200 but after awhile i found that it limited my trading so i went to a $1000 then to $2000 this made a huge difference to my trading and made it possible to use my current trading style so i think $1000 and over is a good place to start
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