Winning Capital Allocation

By Dale Brethauer | Option Trading Blog

Feb 22

‚ÄčIn this lesson I will discuss the proper amount of capital to allocate per trade to give you the highest probability of success.  One of the biggest reasons traders fail is they invest too much on any given trade.  Professionals realize that losers are inevitable and even losing streaks, so they never over invest, but invest the same low amount on every trade.

 I will review powerful equations to determine your trade size and give examples for those trading stock, or short and weekly credit spreads.

 

Keynote:   What we're trying to achieve is a statistical advantage, then spread that over the largest population of trades as we can.

 

"Capital Preservation is the name of the game,  if you don't have any you cant piss in the tall weeds with the big dogs"

- Gordon Gecko, Wall Street

 If you have any questions, shoot me a message through the contact page or through the free membership dashboard (located at the bottom of the page.  All the best!

About the Author

Options Infinity Founder and Mentor. Creator of the 3-Principle Method and avid Harley Davidson enthusiast.

>