There is something called the Beginners Cycle which typically we see here on our desk with the newer traders. Some traders even provided with the correct information, support and all the tools go through this cycle till they gain the insight needed to adjust and finally grow. Insight generally can only be learnt through making mistakes and it's not something that can be easily conveyed. Remember as a child when you were told not to do something but you did it anyway and it worked out as you were told? Touching Fire for example?
Typically the beginners cycle plays out as follows; Losing trader has enough of losing and decides to invest time and effort in developing a day trading strategy using a small account. The trader then gets it working after a little time using small size and all is well. The Trader decides he needs more money from the strategy so then starts to try and get more blood out of the rock. Everything then starts to go dreadfully wrong fast, Trader enters the death spiral and blows the small account. The cycle then starts all over again once the trader has got themselves back together.
The real secret to all of this is once you get your Day Trading Strategy working instead of looking to alter it, is very simple just look to scale it. By simply sizing up but doing exactly the same will produce the results you're looking for. This, however, can be a real issue for a lot of traders who have small retail accounts that are leveraged and don’t have access to large fixed BP like the traders at TraderEquity do to be able to scale.
What we’ve found is even when we convey this insight to a lot of the newer traders on our desk about their access to the Fixed Buying Power with us. It still takes the trader time to gain the insight to fully take advantage of this and thus break the beginner's cycle. Which we believe is formed over years of trading small leveraged at discount retail brokers.
At TraderEquity, we’ve tried to come up with intelligent solutions to solve common barriers we’ve seen holding back ambitious day traders.
Please Note: We can NOT accept any US-based traders, this restriction is based on their location rather than their nationality and we can NOT accept any Canadian based traders directly.