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Only a portion of the broker account should be used for active trading
  • Bamber recommends allocating 50% (or sometimes 10%) of the account to live trading, keeping the rest in low‑risk assets.
  • This prevents over‑leveraging and ensures that a large drawdown does not wipe out the trader’s entire net worth.
  • The unused capital can sit in a bank account, index fund, or other safe instruments, providing a buffer.
Michael BamberTitans Of Tomorrow01:05:47

Supporting quotes

I don't do 10% in the account. I do 50. Michael Bamber
You don't need all your money in the broker account. Why would you if you're doing FX with an unregulated broker to access the leverage? Michael Bamber

From this concept

Capital Partitioning

Separating trading capital from savings, lifestyle, and investment buckets protects against drawdowns and maximizes the utility of leveraged accounts.

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