Help for newbies
Majority of trades are successful and yet traders are losing
Why do major currency moves bring increased trader losses?
For example, the Euro saw an impressive 61% of all trades closed out at a gain
If traders were right more than half of the time, why did most lose money?
We can now clearly see why traders lose money despite being right more than half the time. They lose more money on their losing trades than they make on their winning trades.
It is about the golden rule - cut the losses soon and keep profitable trades to grow.
Simply said tight stop losses and usage of medium TP or Traling SL
Why do major currency moves bring increased trader losses?
For example, the Euro saw an impressive 61% of all trades closed out at a gain
If traders were right more than half of the time, why did most lose money?
We can now clearly see why traders lose money despite being right more than half the time. They lose more money on their losing trades than they make on their winning trades.
It is about the golden rule - cut the losses soon and keep profitable trades to grow.
Simply said tight stop losses and usage of medium TP or Traling SL
Tradingemperor1
会員 Feb 12, 2016
2 件の投稿
Feb 16 2016 at 07:51
Hello sir,
Since this articles is for newbies and I am one of them. I have a question regarding Drawdown. What is a drawdown? What is relative and maximal drawdown mean? I still didnt understand what is a drawdown. Since you are an experienced trader, I would love to learn lots of thing from you 😄
Below I attach a detail report of my demo account.
Love and respect,
Trading Emperor
Since this articles is for newbies and I am one of them. I have a question regarding Drawdown. What is a drawdown? What is relative and maximal drawdown mean? I still didnt understand what is a drawdown. Since you are an experienced trader, I would love to learn lots of thing from you 😄
Below I attach a detail report of my demo account.
Love and respect,
Trading Emperor
Tradingemperor1 posted:
Hello sir,
Since this articles is for newbies and I am one of them. I have a question regarding Drawdown. What is a drawdown? What is relative and maximal drawdown mean? I still didnt understand what is a drawdown. Since you are an experienced trader, I would love to learn lots of thing from you 😄
Below I attach a detail report of my demo account.
Love and respect,
Trading Emperor
Well thats quite easy.
Every time you open a trade your equity decreases. DD is simply sum of all your open positions.
DD is usually calculated as relative so DD of 10% does mean that your equity drops by 10%.
Maximum DD is simply max value ever achieved on the account. If it gets close to 100% your account gets wiped.
Tradingemperor1
会員 Feb 12, 2016
2 件の投稿
Feb 16 2016 at 11:20
togr posted:Tradingemperor1 posted:
Hello sir,
Since this articles is for newbies and I am one of them. I have a question regarding Drawdown. What is a drawdown? What is relative and maximal drawdown mean? I still didnt understand what is a drawdown. Since you are an experienced trader, I would love to learn lots of thing from you 😄
Below I attach a detail report of my demo account.
Love and respect,
Trading Emperor
Well thats quite easy.
Every time you open a trade your equity decreases. DD is simply sum of all your open positions.
DD is usually calculated as relative so DD of 10% does mean that your equity drops by 10%.
Maximum DD is simply max value ever achieved on the account. If it gets close to 100% your account gets wiped.
Wow that is scary. I will keep that in mind. Thank you for information. I learn new thing today.
Love and respect,
Trading Emperor
You mean babypips.com 😉
The differenece between who your are and who you would like to be be is what you do