13.2Capital and Responsibility
- ·How to think about trading capital
- ·Why borrowed capital is inappropriate
- ·The trader's own accountability
Only capital you can afford to lose should be exposed to market risk.
- ·Do not trade borrowed money
- ·Do not trade essential funds
- ·Do not scale risk to recover losses
Every decision and its consequence belongs to the trader.
Responsibility cannot be delegated to a tool, a mentor or a market.
A trader using rent money is forced into decisions by need rather than by the plan.
Examples use historical or illustrative data only. They are not live market signals.
State in writing the maximum capital you are prepared to risk in total.
Which capital is appropriate for trading?
Risk should be increased to recover previous losses.
- 01Trade only risk capital.
- 02Never borrow to trade.
- 03Responsibility is personal.
Educational content only. Nothing here is financial advice or a recommendation to trade. Trading involves risk of loss, results vary between individuals, and past performance does not indicate future results. Only capital you can afford to lose should be exposed to market risk.