đĄ Why More Money Can Make You Go Broke Faster
One mistake newbies often make:
"I only have $100 to trade. If I had $10,000, Iâd manage risk better and be rich!"
Hereâs the harsh truth: If you canât handle $100, youâll burn through $10,000 just as fast â maybe faster.
đž Capital doesnât make you smarter â it amplifies your actions.
Good skills + large capital â faster wealth
Bad skills + large capital â faster bankruptcy
Think about it: You canât ride a bicycle but you want to drive an F1 car. đš Crash is inevitable.
Trading $100 vs $10,000 feels completely different:
$100, 10% loss ($10) â shrug, grab coffee, recover
$10,000, 10% loss ($1,000) â panic, lose sleep, hands shake â irrational decisions
đ„ Psychology kills more than numbers.
Big capital is heavy if your nerves arenât forged with small capital.
Also, donât despise turning $100 into $120 because $20 feels tiny. Patience matters:
Warren Buffett averages ~20% per year.
If you canât grow $100 steadily, youâll never grow $10,000 reliably.
â Rule #1: Preserve your capital
â Rule #2: Focus on performance (%)
Dollar amounts are secondary.
Be grateful for small capital â your mistakes now cost only a few bucks in tuition.
Wish not for more money â wish for the skill to trade.
đž Skilled traders turn $100 â $1,000.
Unskilled traders turn $1 million â $0.