To make a living from trading will actually require a significant amount of capital. A lot of people think they can turn a R1000 account into a R100 000 account but it’s not that simple.
Trading includes risk and in order to trade with good money management you will need to grow your account slowly. This allows you to protect your capital and can allow you to avoid blowing your account or taking large losses. You will also need a successful strategy, and you need to have the right discipline to execute the strategy without deviating from the rules.
Although that doesn’t sound like a lot of growth, there is something we must remember. We focus our trading on compounding growth rather than fast and immediate growth. So, for instance you manage to average 1% growth per day; you will be able to double your trading account after 5 months of trading. And it could even come sooner than that.
So, based off of this principle; to take a R1000 account to R100 000 would require you to trade for +-10 000 days before you can reach there. Although that might vary as your position size increases, I think its just to say that its near impossible.
Now, if you had a R100 000 account and you wanted to take it to R1 000 000, it would be a lot easier. 1% growth per day would take you approximately 2.5 years to get to R1 000 000. That is a lot easier to do than the first option.
Therefore, you would need a large sum of capital from the get-go, you would need a tried and tested trading strategy with a hit rate of 80% +, and you would need the right discipline to stick to your strategy and money management rules.
But don’t worry, just because not everyone has R100 000 to trade with it doesn’t mean we can’t get there.
Firstly, you will need to build a good skillset and trading arsenal. Once you are confident in your skills and you have proven that you can be consistently profitable (even if its with a small amount of money), then you can focus on trying to grow your trading account and putting more money in over time. Rome wasn’t built in a day.
To find out how to get started with us, register in the link below for our FREE trading webinar! Book your spot quickly because spots are limited! See you there.
https://www.thesystemstraders.com/free-workshop-wednesday-nights/