Operate as a professional in Zulutrade

Operate as a professional in Zulutrade: When we want to invest in Zulutrade (and in the stock market in general) a good practice is to think how much money we are willing to invest without it being a problem for our liquidity.

It is often said that between 30 and 60% of savings is the right number for the average investor.

For example, suppose someone has saved $200,000. Investing half will allow you to have a well diversified trading account and keep $100,000 in cash in case you need to deal with any unforeseen or if you detect any investment opportunity.

The disadvantage of a small investor

When the account is smaller sometimes it becomes complicated to be able to diversify. But there is a way.

As you know, we always recommend having at least 5 traders in the portfolio, although the more we have less volatility we will suffer. The following table shows how an investor who wants to risk $1,000 ends up risking only $750 due to the safety margins and in addition usually has an average diversification leaving him at a disadvantage compared to the professionals.

(article: operate as a professional in Zulutrade)

The secret weapon of the small investor

If you want to risk $1,000 create an account with $2,000 and set it up so that if you ever accumulate losses worth $1,000, stop all operations immediately. What’s more, if the account increases to $5,000 and then down to $4,000 it will also stop all operations leaving in your account profits of $2,000 net.

The big advantage is that now Zulutrade will allow you to copy a greater number of traders at the same risk, and your odds of winning increase dramatically thanks to diversification.

In case you need liquidity you can use part of your account that is not at risk. So you cover your unexpected liquidity needs, you invest like a professional and you get lower commissions in your account that will improve your profitability.

The ideal to obtain the triple benefit is that accounts under $15,000 open the account with extra capital sufficient to increase the chances of winning. (article: operate as a professional in Zulutrade)

Summary

Opening the account with more money than we want to risk allows us to:

1. Have the same liquidity as if you had the money in the bank stopped without risking.
2. Ability to operate and diversify as a professional. Increasing drastically the odds of winning.
3. Lower commissions, obtaining higher profits without risking more.

(article: operate as a professional in Zulutrade)

Remember

Zulu4me is free, you just have to open a Demo or Real Account through ours to have the best traders in the world operating for you.

To create a Demo Account:

• Open a Demo Account in Zulutrade here, we help you: Open Demo Account

To create a Real Account you have two options:

• Real Account with AAAFX broker (recommended): Open Real Account (AAAFX Broker)
• Real Account with other brokers: Open Demo Account (Others Brokers)

You have more information in our section on Zulutrade.
Zulu4me Team