How much Money???

1 month ago
14

So how much money should you start playing with once you start scalping/trading the markets?
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It all depends on your risk tolerance and how your losses will affect you psychologically.
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If you cannot handle a $500 loss (if the market goes against you), to make $2,500 in profits, then how about $100 loss to make $500 in potential profit?
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When you are scalping the S&P futures for example, it is not unheard of to make those types of money in minutes. But you must be willing to handle the losses which are par for the course when you are a trader, scalping a market like the S&P Futures.
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This risk to reward ratio is very personal and it should be part of your personal trading philosophy that you can honor and respect every time you go into the markets.

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