Managing your capital base for optimal profits is a whole lot more than just calculating the percentage of return on your invested or traded dollar. When you manage your capital for the highest rate of return with the least amount of risk, you dramatically improve your ability to invest and trade profitably.
Capital Management should not be about trying to “beat the market” but should focus 
on protecting your hard earned savings and market profits while making the highest returns possible.
There are many things you can do to lower risk immediately such as:
The smaller the capital base the lower the risk each trade or investment should have. Often smaller capital based traders take much higher risks that large capital base traders. The problem with that concept is that you can’t afford to lose when you have a smaller capital base.
Lower your risk by using no more than 15% of your capital base on any one trade.
Lower your risk by keeping your risk in a ratio of 1 dollar at risk for every 3-4 dollars profit potential.
Use position, intermediate, or long term trading to lower risk while increasing your capital base. Once you have a moderate capital base to work with, you can learn the more advanced trading styles such as velocity trading, swing trading, or options.
Options are a higher risk trade for beginners and low capital base traders because you must watch two markets at the same time: the options market and the stock market. Avoid options hype seminars until you have gained market experience and have grown your capital base to a moderate to large size.
Understand the kinds of trading and investing available to you. There is more than just options and stock trading to invest in.
If you approach your capital as an asset that needs to be budgeted and managed just like you would your pay check to pay bills, savings accounts, and fun money, then you will be far more successful in the stock market.
TechniTrader®’s Methodology Course goes into great depth on how to manage your capital base whether you have a small base of only a couple of thousand dollars to ten million dollars to trade in the market. Different capital bases have different requirements and trading parameters.