Investment size is extremely important in stock trading.
Day job offers 10% to 20% hike every year.
Can a retail trader invest around one month salary and be satisfied with 10% to 20% profit in a year of trading?
Stock trading is not like day job. It is business. Either invest big and make atleast 10% to 20% profit per anum OR invest as small as one month salary and earn atleast 10% to 20% per month. Infact in options trading there is more profit making potential.
Retail traders MUST NOT INCREASE their investment but instead MULTIPLY their investment through trading because the REAL INVESTMENT in retail trading is TRADING SKILLS, not money.
For big investors HEDGING is there to almost double their investment every year. Retail traders are not yet there.
I am sharing my insights on trading options with small capital in my thread: