Article: Properly Funding Your Trading Account
|
|
|
|
|
Properly Funding Your Trading Account
Although many will suggest that you can trade with the minimum margin requirement we do not necessarily recommend it.
Let's say that you are about to start trading an S&P 500 futures daytrading system. Let's say that the exchange minimum margin requirement is $25,000 and the system drawdown is $25,000.
Let us further assume that you want to get started using the absolute minimum account size. Since we are talking about a daytrading system, many of you may be able to trade for half of the required margin or $12,500.
The lure of starting with the smallest amount of capital possible is obvious. We feel that we are getting more bang for our buck. If the system makes $100,000 profit by the end of the year we feel great because we made 800% on our ...
|
|
|
|
|
|
|
Home
|
Back To Articles Directory
|
|
|
Send your comments, Suggestions or
Queries regarding this site at roseindia_net@yahoo.com.
|
|
Copyright © 2006. All rights
reserved.
|
|