moonchild
VIP Contributor
You opened your charting software and you find a really nice setup that you want to execute on how can you determine what's the best amount of capital you can allocate on such idea in a way that even if it falls your account will still not suffer irreparable damage.
Understand not all trading ideas are the same there some called the A Plus setup where you have to go all out to bag it and in these trades you can allocate like more one percent of your capital towards it and make more in return
But there other ideas that are low value and you shouldn't waste your time on them and even if you will you can stake just half a percent on them and see how they will pan out, most of these ideas will at best return 1:1 ratios, which isn't bad in of itself, I hope you've understood how to allocate capital on trade ideas.
Understand not all trading ideas are the same there some called the A Plus setup where you have to go all out to bag it and in these trades you can allocate like more one percent of your capital towards it and make more in return
But there other ideas that are low value and you shouldn't waste your time on them and even if you will you can stake just half a percent on them and see how they will pan out, most of these ideas will at best return 1:1 ratios, which isn't bad in of itself, I hope you've understood how to allocate capital on trade ideas.
