Understanding 💰 Bankroll Management

The key to #daytrading is 💰 BANKROLL MANAGEMENT! As a trader your number one job is to manage risk. Your max loss on any trade should never be more than 10%. The more you lose, the more you must make to back to get back to break-even point. The grid below shows you why we never want to lose more than 10% on a single trade. The following chart exhibits the challenge of making your investment back after you lose it. Notice that the more you lose, the amount needed to break even grows exponentially. This is because the money lost is capital that is no longer available for investment. If you lose only 10%, you still have 90% of your capital available for investment. If you lose 50% you only

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