small trades build characters as a trader

 AI Overview

Yes, the idea that 

small, consistent trades build strong character traits is a widely supported principle in the trading community. Starting small is often recommended as a way to develop essential discipline, emotional control, and patience without risking substantial capital prematurely. 

How Small Trades Build Character

• Emotional Control: Trading with small position sizes helps manage the intense emotions of fear (of loss) and greed (of missing out) that often lead to impulsive, reckless decisions. Learning to stick to a plan when the stakes are low makes it easier to do so when the stakes are higher.
• Discipline: Consistently executing a trading plan, including entry/exit points and risk management, on small trades builds the discipline needed for long-term success. This involves doing what you know you should be doing, regardless of how you feel in the moment.
• Risk Management: Small trades allow you to practice sound risk management principles, such as setting stop losses and determining appropriate position sizes (e.g., the 2% or 3% rule), in a controlled environment.
• Patience and Persistence: Growing an account requires patience. Small trades reinforce the need to wait for high-probability setups and not chase returns, rather than trying to get rich quickly. Persistence is also key, as small, inevitable losses can be learned from without being account-breaking.
• Learning and Adaptability: A trader's results are a direct outcome of their actions and reactions to the market. By journaling and analyzing small trades, traders can objectively assess their performance and adapt their strategy, which is a crucial trait for navigating ever-changing market conditions.
• Taking Responsibility: Trading with your own money, even in small amounts, forces you to take full responsibility for your decisions and their consequences, rather than blaming the market or relying on others' advice ("gurus" or forums). 

Ultimately, the process of making small trades consistently allows a trader to focus on developing a reliable mindset and method before scaling up the money (position size), which is a core tenet of professional trading.