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How you would deploy a 10,000 dollar account

Question

You are given $10,000 to trade. What would you do with it?

Short answer

Present a plan, not a single hot tip. State your objective and horizon, a specific idea or strategy with its rationale, and how you would control risk (position sizing, diversification, stop or exit rules). Mentioning costs and the option of a low-cost index position shows maturity.

Adapted from Crack, Heard on the Street, Q5.3.6, p.50; question and answer rewritten by SelfMadeQuant.com.

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