As a beginner, are you debating how much money to allocate for trading?
You can use FalconFunda’s below 4D’’s approach to determine your budget.
Following these steps will give clarity on your financial situation and have a sense of control instead of throwing money into the financial markets and putting yourself at risk of getting into financial trouble!
Step1 : (D)etermine your personal finances for the next 6 months.
Step 2: (D)etermine your Savings money.
Step 3: (D)etermine money you have and don’t need to use for the next 6 months.
Step 4: (D)etermine your risk appetite by putting together a trading plan.
Your trading budget should be 20-30% of the money you don’t need to use for the next 6 months!
Download Google sheet which will auto-calculate your trading budget.