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tradewonk
15. Apr. 2017 12:05

Maximum Drawdown Ausbildung

British Pound/U.S. DollarFXCM

Beschreibung

Drawdowns on your account are part of trading but if you establish a trading plan then it will enable you to survive these losses and not wipe out your account.
Kommentare
nikzadp
What do you think is the best way to utilizing one's entire capital? if say I use 2% a trade, do you think it's ok to open 50 trades? I know it's very hard to manage 50 trades but theoretically, how does it sound like in terms of risk management?
moontumble
This splendid advice is one of the most basic yet underappreciated issues, especially for beginning traders.
As you eloquently put it, understanding that every step down in your account equity requires substantial and increasing effort as well commitment to break even again (which some traders mistakenly feel compelled to translate into taking on greater risk, with sometimes disastrous consequences for one's total equity).

Do yourself a favour and listen to tradewonk's advice here, manage your assets and risk properly, and protect your profits at all costs.

Good on ya, tradewonk!

mohammadfarid.uddin.1
Good advise, carry on
tradewonk
@MohammadFarid.uddin.1, Thank you!
ploskyx3
j_nathan
nice correlations

for me it was quite personal, as in why did I need to embrace so much risk exposure and why did I keep breaking my own trading rules?

revenge trading, doubling down, not getting out, so many red flags in the beginning

if i may add, journaling is a must, you can't regroup with yourself if you are not speaking in detail from the past

a trader that doesn't journal while not trying to minimize risk exposure will usually fail until he/she does

InsiderB
Thats very good reference material if someone wants to check on Drawdowns..All the Best !
ValdeanoFX
if i have balance 1000USD, with leverage 500. should i use 0.5 lot to entry or 0.05 to entry?
tradewonk
@valdeano, doesn't matter how big your account is, i do not recommend to risk more than 2-3% per trade. here is a calculator you can use.

myfxbook.com/forex-calculators/position-size
ValdeanoFX
@tradewonk, thanks, one question more. are you do some averaging position/ split position into 2 or 3 position, or only using one open position ?
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