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Two Definitions of Trading Capital © "Dedicated to trading with good feelings." All services are free. |
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Many traders overtrade their trading capital through ignorance and/or greed. A heavy price is usually paid by traders whose account value (trading capital) is not sufficient to support their normal trading size. But there is a second sort of trading capital other than money - it is psychological capital and is arguably more critical to trading success than mere money. Traders who trade beyond their confidence level also pay a heavy price, and often not just in monetary terms. Knowing your risk of ruin helps you trade within both definitions of capital. Please show me a way forward |
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