Conservative Plan
                       Your financial commitment is for $15,000  or  30%  ofyour $50.000 in capital. We are going  to  use  50  trades  as  the  maximumnumber of consecutive losses before you lose the entire $15,000: with  thesetwo numbers you can determine your maximum loss per trade.
                       30% / 50 trades = 0.006 % maximum % of capital
                       $50,000 x 0.006 % = $300 MAX loss per trade
                                 Note: You can increase the 50-trade  numberand lower your max loss per trade if you need more cushion getting started.                       This is a very conservative plan  for  a  trader  butwhy not? You are starting a new business. Most traders tend to use 1% to  2%as guidelines. We have dropped to less than 1% giving you lots of  room  foryour trading plan with a 50-trade consecutive loss allowance.                       Your trading plan is better than that so  in  realityyou are probably only going to blow up if you don’t control  the  loss  sideof the traders’ equation. Remember, if the market doesn’t prove  your  tradecorrect in a reasonable time frame you get out immediately. You  don’t  justsit and wait for the $300 loss number to come up.      You can’t control what the market  does,  but  you  can  control  yourrisk. Unless they stop trading on you, that $300 loss can’t be violated.                       Yes, you should be encouraged, this business  has  anexcellent chance at being successful provided you  have  the  discipline  ofkeeping to the $300 max loss per trade and your trading plan is decent.  Thecombination will keep you in the game  as  you  get  better  in  your  tradeselection and market feel.                       You can allocate the  $300  max  per  trade  loss  indifferent ways. Starting out, I  suggest  you  trade  a  smaller  amount  ofshares. The more volatile the stock,  the  less  shares  per  trade.  It  isalways easier emotionally to give yourself more room on the stop  with  lessshares than trading say 1000 shares of IBM and trying to keep your  loss  to$300. It puts too much pressure on your entry timing.                       It might be better to have two trades of  300  sharesper trade allowing 1/2 point ($150) stop room  for  each  trade  than  1,000shares risking a  1/4  ($250).  This  assumes  the  stocks  have  reasonablevolatility.                       If GE has an  implied  volatility  of  40%  and  yournormal trade is 300 shares and you decide to take a trade in MU with  IV  of80% I might cut my trade size in half so I wouldn’t have to keep my stop  toclose in such a volatile stock. The average daily  range  of  the  stock  inaddition to its travel range will determine your share  allocation.  GE  andAOL are two different stocks.      Regardless of how  you  allocate  maximum  loss  per  trade  the  "DayTraders’ Equation" must be balanced.