3min chapter

The Trade Busters cover image

96 - Real Talk with Real Traders: Mark Anderson

The Trade Busters

CHAPTER

How to Limit Your Capital to a Certain Percentage

If all the money you pull out goes into like a secondary kind of just sitting there, then you're, you're kind of net lick, so to speak, is also growing. So your risk, even though it's high relative to the trading account, it's small relative to the overall net lick if you hadn't been spending the money. And that's kind of like the same concept of I am accepting sequence risk by sung less contracts or sung less premium on each side in return for less unit risk. Now I do think that if you're trading out through the entire course of the day and you have four or five strategies, that's the way to do it.

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