Aaron Countee
Aaron Countee Sep 30 at 10:18
Think of this.. if you ALWAYS cut your trades short and NEVER go into the red.. guess what?? You will never lose money but will only make money. Holding on to the losing trade is a fool's game.

trade 1, trade went up 5 pips then dropped 5 pips you close -5 pips loss
trade 2, trade went up 6 pips then went 5 pips negative you closed it
trade3, same -5 pips
trade, 4same -5 pips
trade, 5same -5 pips
trade, 6 same -5 pips
trade, 7same -5 pips
trade 8, same -5 pips
trade 9, WIN 100 pips trade
trade 10, same -5 pips

Loss -45 pips Won 100 Pips +net profit/loss 55 pips
Win rate: 10%
Loss rate: 90%

You can be the worst trader in the world and still make money if you cut losses quickly even if you were only right once out of 10 times!! Losing money in trading is an impossibility if you are a wise trader.

Let’s say you are a 20 % winner on a near drawdown-less trade: You can then cut losses at -10 pips and still win every 5 tries. Never will lose money.

40% Winner, then increase it to -20 pips limit and win every 2.5 trades and STILL never lose money.

The key to this is you MUST hold the winner to a dollar amount that is a minimum of 2.1 times the total loss proceeding the winning trade.