I really like this approach, they can have a 20k portfolio for live trading but another 100k for paper, that way they have the feeling of playing with big money, examine risk, trade a number of strategies, but live trade only the profitable ones and grow slowly, Thanks
True story : A coworker , heard another guy who made $2 in one week on BTC. 10%. A man came with a genius plan on how to rent a better place since now he will put half of his life savings into BTC and it will generate 10% per week of passive income. Sounds like a sci fi movie or worse(for us) but's that's the perception of newbs.
If they are learning the basics,why should the size of their portfolo affect their returns,assuming they are trading stocks with zero commisions??? Are you the mentor?? Its a bit of an odd question if you are
95% of traders fail and lose their monies. Every trader should risk no more than 2% per trade. Some suggest just 1% per trade if you are a newbie. Now, you have to have a system to trade the stockmarket and generate returns several multiples of your risk which is say 2%. My suggestion is to trade with the major trend and remember to use stop losses too, to further limit your losses. If a stock is going up, go long. Now, if it is headed down, short it but, only with put options or reverse ETFs like SQQQ by way of example. Losses will come whether you like it or not, so best be ready to handle it. Make sure any trade you take is aligned with the major trend. You should win 80% of the time if you do this because the percentages favor you. Like owning a casino. All you have to do is wait for the monies to roll in. This takes time. Do not expect to be overnight millionaires like the Reddit traders.
Let's start with defining how much money you want to make. What do you consider a low return? Look at returns as a percentage of your portfolio, that way the size of the portfolio doesn't affect the size of the return, unless transaction costs become a factor. (If you are trading stocks there are zero commission discounters available)
I don't think there's anything someone could say to stop the horror, it's calibrating expectations which you can't do without real experience
Right, but even then when you try to send the message that 15% / year is actually not bad, it sounds low compared with the media stories on X00% of the last wall street hit
With fractional shares and micro's one can manage a small equity portfolio. Some option trading can be done as well, european options or even some strategies on stocks of about 50$, with very careful margin control. At the end of the day, it's a game of %