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I am actually not a short term trader but generally speaking I would say that
the adequate level of capitalization will reflect a whole multitude of things
from the contract size you are trading to the nature of the system/method you
plan to follow. But do not overlook the fact that your capitalization must
be consistent with your expectations. Lets say that you want to trade
full-time and that after costs (incl things like quote feeds etc) you need
make $10,000 a month on average to continue with your existing lifestyle. If
you have a capital base of $10,000 then clearly you are going to feel
pressured to take on board risk that is not consistent with you capital base
and hence increase your risk of ruin.
Before giving up your "day-job" to trade be sure that you are ready both
financially and emotionally.
E.
P Gumprecht wrote:
> RTs (esp. full-time, short termers):
>
> Thoughts on capitalization needed to day or swing trade currencies or S&P
> (any other suggestions?) Expected drawdown? Obstacles to be aware of and
> things to do to prepare?
> Cap. needed to position trade? Assuming more.
>
> PG
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