Hi Traders, today's topic is regarding 'Equity Curve' as the best reflection of your trading performance. Personally, when I was new into this business It was uneasy for myself to put aside the monetary aspect and truly trust the process. In trading, money comes and goes in a blink. To be consistently profitable, you MUST learn how to protect your existing capital, and your profits. Money will follow once you have consistent execution and action plan.
"In trading/ investing, It is not about how much you make but rather how much you don't lose." - Bernard Baruch
Equity Curve A
- Reasonable Risk-to-Reward
- Emotional detachment
- Shallow drawdown
- Consistent execution (Back-tested strategies)
- Comply to trading plan
Equity Curve B
- Constantly search for the 'best' trade (Gambling behaviour)
- Steep drawdown (Impulsive decision)
- Over-trading & Revenge trading
- No clear trading plan
- Inconsistent action plan (Bad performance)
Emotion acts like a two-edge sword, It is about when to trust your gut-feeling/ intuition. Understand your personality, make adjustments from there.
Comment down below how's your current equity curve looks like?
Trade safe as usual.
Do follow my profile for daily fx forecast & educational content.
"In trading/ investing, It is not about how much you make but rather how much you don't lose." - Bernard Baruch
Equity Curve A
- Reasonable Risk-to-Reward
- Emotional detachment
- Shallow drawdown
- Consistent execution (Back-tested strategies)
- Comply to trading plan
Equity Curve B
- Constantly search for the 'best' trade (Gambling behaviour)
- Steep drawdown (Impulsive decision)
- Over-trading & Revenge trading
- No clear trading plan
- Inconsistent action plan (Bad performance)
Emotion acts like a two-edge sword, It is about when to trust your gut-feeling/ intuition. Understand your personality, make adjustments from there.
Comment down below how's your current equity curve looks like?
Trade safe as usual.
Do follow my profile for daily fx forecast & educational content.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.