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How do I determine how much capital to allocate per trade?
Author: Ivan Yaller
Website: http://www.InvestingYes.com
Added: Tue, Oct 31, 2006 8:29:12
Category: Investing Questions
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Bear in mind that the amount of capital you intend to invest is the primary element to consider in day trading. You must be aware that the cost of capital has a direct relationship to the probability of your success. The higher your investment, the higher your chances for making a profit.
Determining the amount of capital must be sufficient to apply proper risk principles. This is defined as the money you can afford to lose without affecting your standard of living. According to experienced investors, a minimum allocation per trade should be at least $10,000.
keywords: Investing | Investment | Invest | Stock Market | Funds | Financial | Trading About the Author:
Ivan Yaller answers frequently asked investing questions at PrettyGreatAnswers.com.
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