Reasoning: How do you become a millionaire? Or .... - page 20
You are missing trading opportunities:
- Free trading apps
- Over 8,000 signals for copying
- Economic news for exploring financial markets
Registration
Log in
You agree to website policy and terms of use
If you do not have an account, please register
And why is such a drawdown allowed?
After all, it is no secret that reaching 20-30 can be followed by 50-90.
I think this is not right. It is better to close with a small loss. Your profit will be gain in time and maybe even money.
+100500
A trader gets used to everything. Once you got a drawdown of 30%, you got out of it. Then second time, third time. Then he gets used to it and a 30% drawdown now seems normal, and further on he might even get used to a 50% drawdown.
I guess it's time to make a team, then it might turn out like this again )
Well, not without it :)
Good thing we are sitting hundreds of kilometres away from each other. Otherwise we'd be walking around as scratchy as professional hockey players.
+100500
A trader gets used to everything. I had a 30% drawdown once, got out of it. Then second time, third time. Then you get used to it and even 30% drawdown now seems to be normal, and you might even get used to 50% drawdown.
Of course it is possible to reason like that.))) But there is a difference between a good trader and not a good trader.
A good trader has his own TS and he follows it. It is a kind of a list of rules. What you can and what you cannot do.
And beyond which in no case you can go.
By the way, not a good trader may also have his own TS, but he does not follow the list of rules.
Trading just on the safe side. And such traders are a dime a dozen.
Well, 30 is of course the maximum not to go in. Ideally, it should be no more than 20.
And that's for amounts not big enough. From $1,000 to $15,000. The more the amount, the lower the drawdown should be.
The ultimate objective for this drawdown should not be 5%.
The drawdown should preferably be regulated by the ratio to the used margin.
The drawdown should preferably be adjusted in relation to the margin used.
These are all nuances.
You can certainly reason that way.))) But there is a difference between a good trader and not a good trader.
A good trader has his own TS and he follows it. It is a kind of a list of rules. What you can and what you cannot do.
And beyond which in no case you can go.
By the way, not a good trader may also have his own TS on the list of rules he does not follow.
Trading just on the safe side. And such traders are a dime a dozen.
Okay, then let me ask you a question. If a trader drawdown was 20% for 2-3 times per year - is this a good trader?
Save up, trade.
There's a trader here. He'll save up, put some money in his account, trade for a couple of months, and then sell it.
And he does it all the time with a 1-2 week break.
And what's interesting, he doesn't even want to change.
No, there are attempts, of course, but they are all within the same direction.
OK, then let me ask you a question. If a trader has had a 20% drawdown 2-3 times in a year - is this a good trader?
The market is an aggressive environment. Anything is possible.
If such a trader has had several drawdowns and managed to come out of them correctly, has a stable growth,
then yes, that's a good trader. I mean the trader himself, not his product. Do not confuse.
Again, the market is volatile.
Remember good traders who were making good profit and at some point they went bankrupt. And why?
The market has changed. The trader no longer sees what he has seen before in the market. Couldn't adapt.
Is he now considered to be a bad trader? I don't think so. He will understand the situation and will rise as high.
There are a lot of examples like that. I'm not talking about traders with up to $1M in their accounts.
The market is an aggressive environment. Anything is possible.
If such a trader has had several similar drawdowns and managed to come out of them skillfully, has a stable growth,
then yes, that's a good trader. I mean the trader himself, not his product. Do not confuse.
Again, the market is volatile.
Remember good traders who were making good profit and at some point they went bankrupt. And why?
The market has changed. The trader no longer sees what he has seen before in the market. Couldn't adapt.
Is he now considered to be a bad trader? I don't think so. He will understand the situation and will rise as high.
There are a lot of examples like that. I'm not talking about traders who have up to $1M in their accounts.
That's roughly what I thought. It will work out just like I wrote in the post at the top of the page. It's a matter of habit, and it's a matter of time before you lose your deposit ;)