Capital Management

binary-trading- what is it and how can it be beneficial?moneytheory-com_pencheck_calculatorusd-cash

The 10:30 capital management system is the best way to both grow your capital and protect it at once. It’s the best of both worlds and I’ll share it with you now. Bear in mind that this management system is best used for binary options trading, though you can adapt it for any kind of investment the ratios here are a golden fit with binary options trading.

The system is, as most genius things are, quite simple and elegant. There are two rules which you must follow, but there is quite a lot of flexibility in the whole system as well:

profit and risk involved onlineRule #1: no more than 10% of your overall capital must be invested in a single trade at any given time. This is in itself a simple rule to follow, but it may be frustrating to those with very small starting capital. If you’re absolutely sure about a trade it’s tempting to want to double your money in one fell swoop, but you also risk losing your entire capital with one fell swoop with an attitude like that. Keeping individual trades to ten percent or less keeps you safe from the series of losses that will befall even the most experienced trader.

Read more about capital management at moneytheory.comRule #2: no more than 30% of your overall capital can be invested in active trades at any  one time.  If you want to live on the edge of the first rule, you can have three 10% trades going, or six 5% trades, or one 10% trade and ten 2% trades, whatever floats your boat. The bottom line is that the bulk of your capital is safe while a third of it is consistently growing.

This strategy is the perfect balance of risk and safety, letting your portfolio grow while keeping your capital secure. Try it and watch your money grow…