ENTRY  N° 9  /  80
Glossary

Capital preservation

Part of the theme Risk and position sizing.

Definition

Capital preservation is protecting your trading balance from large losses so that you stay solvent and able to keep trading.

It comes before profit because losses are asymmetric: a big loss shrinks the base that every future gain must grow from. A trader who preserves capital survives long enough for an edge to play out.

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This is an educational credential. It is not a licence, not authorisation to give financial advice, and not a guarantee of trading skill or profit.

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