Day trading capital size

#1
I have sufferered account blow ups in the past and have now decided that I am going to restrict my capital size.

How much do you advise? I mainly trade in the index only.

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#2
Account-blowups usually happen due to one not having/taking one's SLs or risking too much money per trade, so I think developing a strong trading-discipline & having good money-management is more important to preventing account-blowups because without these fundamentals, one will continue to blow-up accounts irrespective of their size. In my opinion, capital-size should be based on the amount risked per trade, & as you might know, 1-2% (or less) per trade is most widely recommended. This ensures that when you have to take your SL according to your strategy, it's only a small amount of the total capital & therefore it's easier to accept that loss & move on whereas if it's a relatively large amount in relation to your account then it's that much harder to accept that loss & move on.

I don't know if this helps but just my two cents.
 
#3
Account-blowups usually happen due to one not having/taking one's SLs or risking too much money per trade, so I think developing a strong trading-discipline & having good money-management is more important to preventing account-blowups because without these fundamentals, one will continue to blow-up accounts irrespective of their size. In my opinion, capital-size should be based on the amount risked per trade, & as you might know, 1-2% (or less) per trade is most widely recommended. This ensures that when you have to take your SL according to your strategy, it's only a small amount of the total capital & therefore it's easier to accept that loss & move on whereas if it's a relatively large amount in relation to your account then it's that much harder to accept that loss & move on.

I don't know if this helps but just my two cents.
No it actually does. Thanks for the info. Sorry for the late reply though. How do you set SL? Do you again enter trades even after your SL is breached?

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#4
No it actually does. Thanks for the info. Sorry for the late reply though. How do you set SL? Do you again enter trades even after your SL is breached?

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I'm glad that it does. No problem. Ok, this is just my view but I think understanding probabilities is way more important than how one sets one's SL, & the attached picture shows you the MINIMUM win % required to break-even with a particular RR; & as you can see on the probability-curve, a different minimum is required for strategies with a different win % Obviously, the more you exceed the relevant minimum required win %, the more profitable your strategy would be. I don't always wait for my SL to be hit & if I see weakness then I'm willing to get out with a minor loss, & re-enter IF I get another signal as per the strategy but I, certainly, will NOT enter based on hope or "gut feeling" or whatever. It's very important to be disciplined in following one's strategy to realize the full potential of the strategy, whatever it may be, & if it still doesn't work then one could try a different strategy using paper-trading or very small quantities of shares but if one isn't following any tested & clearly defined strategy then it's like sailing in the deep oceans without a radar; if one thinks that the radar is faulty then one should replace it but going in without a radar is downright crazy in my opinion.

RRR_winrate-1.jpg