Risk Management - Minimum Balance

V

Viva

If you are only supposed to risk 2-5% of your trading funds per trade, does it then mean the minimum I should save to start trading would be 20 to 50 times whatever the average cost of my position would be?

So I want to start trading LEAP options, five contracts at a time.. (approximately 4k per trade).

Thus: I need $80k to $200k to consider starting this?
 
Ah, I had read some of the older threads about risk management, Kelly criterion, and it seemed like quite a few traders had warned about risking too much of your capital at any given time.

Thanks for clarifying!
 
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