17
Losing a little to gain your capital
What topics are covered in this chapter?
You need enough capital to start the business of trading. The amount of capital required should be computable from the start of trading based on the professional technical trading system and the properties of the data series of the market you have chosen. Two of the ways to compute capital requirement are based on:
- maximum consecutive losses or
- winning versus losing percentages.
The final capital requirement should be the larger of these two.
What are the objectives?
The reason for having enough capital to sustain a series of small losses is to capture the big gain when the trend comes.
Introduction
Trading is about lasting through bad times. If your capital ...
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