Why capital is so important or even critical in successful trading?

Probability is not the key -- the odds are never fixed like a deck of 52 cards. You need capital to learn, to pay your tuition from the start, that is pretty much a given. But once you make it I think it's "psychological" capital that is more important than actual.

Those that play no limit poker can understand, you really have to not care about your chips at risk to be able to succeed. How do you get to that point? Confidence that you can always make those chips back. When it comes to the markets, I am always looking to learn more, to push harder to find new ways to apply greater amounts of capital over longer time frames (position size and trade duration go hand-in-hand, after a certain point). Why? Because even if I somehow blow it all, I know all I need is a few grand to get right back into it -- this gives me the courage to continually push myself. And you will eventually find yourself always pushing, if it's longevity you seek.
 
Quote from fearless9:

...my advice is to build a good relationship with your Broker.He/she has a wealth of knowledge and it is your job to encourage them to share it.


regards
f9


Of course, this advice does not apply to those who trade through I.B.
 
Quote from tortoise:

Of course, this advice does not apply to those who trade through I.B.

tortoise,

Your Broker is your prime sub contractor.
If you fail in the selection of one with whom you can build an excellent relationship, then you have no one to blame but yourself.

Trading is your 100% your business.
Your Broker works for you. It is not a partnership.

regards
f9
 
Quote from illiquid:

Probability is not the key -- the odds are never fixed like a deck of 52 cards. You need capital to learn, to pay your tuition from the start, that is pretty much a given. But once you make it I think it's "psychological" capital that is more important than actual.

Those that play no limit poker can understand, you really have to not care about your chips at risk to be able to succeed. How do you get to that point? Confidence that you can always make those chips back. When it comes to the markets, I am always looking to learn more, to push harder to find new ways to apply greater amounts of capital over longer time frames (position size and trade duration go hand-in-hand, after a certain point). Why? Because even if I somehow blow it all, I know all I need is a few grand to get right back into it -- this gives me the courage to continually push myself. And you will eventually find yourself always pushing, if it's longevity you seek.

You're mising the point that me and others are making about probability . What's more "probable'? Turning 1 million into 2 million or turning 3k into 2 million?
 
Quote from Pa(b)st Prime:

You're mising the point that me and others are making about probability . What's more "probable'? Turning 1 million into 2 million or turning 3k into 2 million?

That's kinda, well, obvious though -- is that all the question is asking? I was replying more to the guy who said something to the effect of understand probability = becoming a trader.

The rest of my point is just that capital is important -- until it isn't (on a certain, individual level of course).
 
Quote from Pa(b)st Prime:

You're mising the point that me and others are making about probability . What's more "probable'? Turning 1 million into 2 million or turning 3k into 2 million?

Depends on which individual Trader you are discussing.

Consistently successful Sole Traders do not compare their outcomes with other Traders, they are simply focussed upon their own improvement.

regards
f9
 
Quote from OddTrader:

It seems so often people on ET would mention that adequate capital is very important or critical in trading successfully, however without much discussion usually.

Are there any good reasons for that? And what are they? Why?
the reasons are here:
with more money to trader:
1-do not trade scared
2-with less money always afraid of losing money
3-trade more on the offensive and not on the defensive..
 
Quote from increasenow:

the reasons are here:
with more money to trader:
1-do not trade scared
2-with less money always afraid of losing money
3-trade more on the offensive and not on the defensive..

It is not that simple .....

a string of loses will turn No1 into No2 and No3.
Where is the preparation to handle this event.

regards
f9
 
Quote from fearless9:

It is not that simple .....

a string of loses will turn No1 into No2 and No3.
Where is the preparation to handle this event.
regards
f9

Does our brave young Trader add more capital to refresh his/her account in order to recover some courage, or was the courage falsely placed in the beginning.

regards
f9
 
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