...If you are risking 5% of your capital per trade and have a win/loss ratio of 50%, during the next three years of active trading you will experience a 30% drawdown at least 15 times. Sound fun?
Just so you know, most people who trade for a living risk less than 1% of their capital in a trade, 2% in a maximum commitment.
I will have more to say about risk management in the coming weeks, but for the 26% of respondents who reported risking more than 5% of their capital per trade, let me say just two words to you — you’re history! The 50% of respondents who risk less than 2% of their capital per trade have a fighting chance.
Read more at https://www.peterlbrandt.com/your-mean-risk-per-trade-is-3-2-you-are-crazy
Just so you know, most people who trade for a living risk less than 1% of their capital in a trade, 2% in a maximum commitment.
I will have more to say about risk management in the coming weeks, but for the 26% of respondents who reported risking more than 5% of their capital per trade, let me say just two words to you — you’re history! The 50% of respondents who risk less than 2% of their capital per trade have a fighting chance.
Read more at https://www.peterlbrandt.com/your-mean-risk-per-trade-is-3-2-you-are-crazy
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