If you're starting out in the world of trading or investing, you were probably drawn into it from the glamour of some hot shot sipping cocktails on an exotic beach in some unknown part of the world professing how trading and investing has brought them financial freedom.
Sounds good right?
The problem is, getting from where you are (a beginner) to where they are (and it's possible they're just faking it) is an ocean to cross, one filled with sharks, killer whales and guppys to scavenge the last fragments of your body once it's been well and truly used and exhausted for all it's shoe string might.
Let's start off with a few small pointers to make that journey ever slightly less bumpy, less violent, and maybe you'll even live to tell the tale when you arrive on the other side.
Bumpy is a good way to describe how the markets operate, and that's the nature of price discovery. You may call the whales manipulators of the ocean, but they're really just going about their own business, trying to survive, making enough to sustain their huge appetites etc.
The result of this is volatility in price and the opportunity for investors and speculators to jump in when you see opportunity.
Whether you're starting off with $1000, $10000, or whatever sum you deem necessary, do not expect to make instant profit with that money, or some quick fix to get your foot in the door. There are absolutely no guaranteed "fast flips" and don't let anyone or any platform try to convince you otherwise.
Building good methodology, knowledge, and strategy takes time and is akin to building a solid foundation. A shoddy foundation will mean everything gained on top will collapse into the abyss. A strong foundation means the potential to make progressive gains and eventually end up with an impressive result.
Bumpy markets combined with leverage, and "hot tips", "signal services" are going to make your exposure to the markets much more volatile, and with the lack of experience will likely end your journey.
Another common mistake with newcomers is complacency. You've had a string of good results, you feel like you have a good grasp of the markets, and profits are rolling in. Maybe you've turned 5k into 10k, or 10k into 50k and you feel invincible. The tendency is to start taking on more risk, and assume that you'll just scale up and get even more gains.
The reality is, the market conditions are always changing and just because you've mastered the art of buying the dip in a highly trending bull market, doesn't mean that you'll know what to do in choppy waters.
Allow yourself the time to experience as many different market conditions as possible. Test your strategies in markets with different characteristics, markets in different phases of the cycles, and most importantly, never commit more than the same percentage of your account for each position.
A time tested strategy across a broad spectrum of markets will build an overall better understanding of fundamental wealth building. Crypto markets have spoiled it's participants because of it's high risk, high reward price action through it's short history but remember, it is but one market and market dynamics, can and frequently do change.
If you've rounded out yourself with all of the above and have a statistically proven edge through years of experience, then your account will naturally scale up even if you commit the same % to each trade.
Remember, the key to success is surviving. The journey from one side of the ocean to another is vast, expansive and dangerous, and you need extremely good preparation to make it to the other side. It's not a sprint, but a marathon.