Account Size- Important factor for trading

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From my personal experience and from my experience with other traders, I have found that small accounts don't work. The majority of people don't have the discipline and self control to manage a small account. Of course, small is relative to the person, but all that matters is that the person's who's account it is believes his account is small.

If you think your account is small you'll be:

  • Wanting to increase the size of it faster than is safe.
  • Over-leverage to make more money per trade; therefore becoming over exposed.

For the amount of mental and physical effort which is invested in trading it's only natural that you want to have a high return on your efforts, but the only way you can do this safely is to have a large account.

You need to have an account size which you can trade lot sizes which you're happy with.

 

Hi Jack, I am agree with you but not completely. I think, new traders should start trading with small account. If they are able to make some profit and after having some trading experience they should invest more money in their trading account.

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