Why You Lose So Much Money in Trading
Hey Readers let's start what actually work Why You Lose So Much Money Trading The key to long-term survival and prosperity has a lot to do with the money management techniques incorporated into the technical system. Many things cause new traders to fail. One of the main reasons that traders fail is because they don’t understand the math of capital destruction. The more capital you risk per trade, the quicker you will lose it in losing trades. Once your capital is depleted, it takes a larger return to get back to even than what you initially lost. A 10% loss requires an 11% return to get back to even A loss of 20% of your capital requires a 25% return to get back to even A 50% loss of capital needs a 100% return just to get back to where you started Risking 1% of your capital per trade puts you down 10% after 10 trades Risking 5% per trade puts you down 50% after 10 trades No matter how good you are, you can’t trade so large that a single losing streak is your last. If you risk too...