We concluded the last chapter having reached the point where we had identified a bet we wanted to make. This chapter deals with the critical issue of how much to bet. It is a short chapter, however it is one of the most important in this book. Miss your footing on this part, and you are in for a serious fall.
We have now reached the point where one of our set ups has reached its trigger point. We have made the decision that we are going to place the bet.
How much should we bet?
Here are the steps to work this out:
Determine the price at which you will come to the conclusion that you are wrong – when you will consider ...