Account size

Hello there fellow traders,
I have been trading profitably using different sets of strategies overall. I am currently up by a mere 6 percent overall.
However my account size wasn’t that big but its the thought process that is more important.
I wanted to know that how much account sizing or money should I put if i dont want this to be a full time job but good enough from a business perspective?
Any thoughts? I risk no more than 2 percent
So if you could kindly share your experiences that will be awesome :slight_smile:

Hello and welcome, Vishal.

Think about three angles to this:

  1. if you risk a small amount, you gain small amounts but your account growth curve will be smoother and more consistent:

  2. if you risk small with a lot of money invested then you will still do as in point 1) above, but the small gains (relative to size of the account) will allow you to experience it more as a business that pays some dividends which can be withdrawn or reinvested (or simply spent on yourself or your friends/family);

  3. if you risk big with small money then you can significantly improve the pace of your gains but also of your losses, which means that your account curve will look quite choppy…and you may lose all of it.

When part-time retail traders like you and me, and many others, want to treat their account like a business, we have to invest both time and money on it… Eventually, it will be something that HAS to pay enough to justify your investment of time and money, otherwise it never really graduates from ‘hobby’ to ‘business’… I think that there is nothing wrong calling small trading a ‘hobby’ or ‘profitable interest’, if you like, but we should be clear that if we under-invest in it, it can never truly be anything more…

What do you think?

Why are you risking up to 2 percent? Have you worked-out your risk of ruin? Everything else aside, you probably aren’t in a position to worry about adding funds when you have more foundation work needing attention first.

To answer your question: It’s not just the “thought process” that matters. Adding funds gives you the opportunity to become greedier than you should be which can lead to revenge trading and a blown account. 6 percent of nothing is still nothing, but adding funds and then getting carried away can also leave you with nothing when you started with something.

Don’t be silly. Stop risking so much. Maybe add a small amount of funds each week to grow it incrementally instead of jumping into this head first.

I started trading as part time work . I invest just $200 in start . It was enough amount to see my abilities in trading. As my trading improve I increase my account size accordingly. My risk ratio is 1% to 2% in trading . I do not make greedy trading for good trading reasonable risk is required so I am happy with my performance.

To trade full-time according to your performance? Just see how much that 6% is in money and raise your capital until that 6% gives you enough to live off the markets. Keep everything else at the same proportion. keep the same strategy, go for consistency, accuracy. Dont mind the extra zeroes you have added to your account, keep everything else the same.