AIRFOREXONE_

HOW PROFITABLE TRADING LOOKS LIKE ? (EDUCATION)

Education
FX:EURUSD   Euro / U.S. Dollar
Hello traders, I'm making this post in order to help the community, most of you focus to much in technical analysis but let's take back to basics a put things clear.
Before continuing reading make sure to give a like this will help the community use proper risk management.

Let's talk about simple math : This is simply a conceptual series of 10
trades, taken one after the other from abeginner perspective let's us act as a beginner: if at the beginning you risk more than expected then it will take you a lot of work to recover from that DD%. Make sure to have a proper risk modelling and follow the rules to survive. New traders execute trades with certainties
  • " this loos good"
    "I will risk more"
    “ I can’t lose in this trade “
    "I will risk more in this
    one because I need to recover my
    previous loss" .
    "I lost the previous one i
    will risk less"

Here is where the problem occurs:

When you modify parameters in your risk
modeling it will have a strong impact in
the outcome.

This example was clear. Our dear Mr amateur risked more in the first trade end up losing more ( uncontrolled loss) , then took another normal loss , after that he has two winning trades but guess what? Mr emotional become greedy and risk more after having two profitables trades and guess what ? He just distributed all the money back. See how his biggest loses come after the biggest wins . After that big loss mr amateur is scarred to pull the trigger and of course he cut winners very quickly because he’s afraid to distribute back . Well for him trading becomes a nightmare . Markers are consuming his pocket and soul .

Now Let us say for example that you took
10 trades with proper risk management ? With a probabilistic approach?
the outcome is totally different. And guess what there is no magic trick . Profitable trading is a unemotional risk manager game , Chose wisely .

Here is where the solution is :


EVERY TRADE IS UNIQUE , ANYTHING CAN HAPPEN.

MANAGE YOUR EXPOSURE OR YOU WILL HAVE NOTHING LEFT TO MANAGE.

PRO traders understand that in order to have results they must adopt a series per trade approach


Please do follow and comment your thoughts. let me know in the comment section what do you think about it .



IG: @airforexone