Big loss, there is only one reason for the exit
Even with a win rate of 60% and a risk-reward ratio of 1:2, you can still lose if you do not manage your funds.
There is only one reason for a big loss or being forced out
Because you are not managing your funds.
When you incur a big loss, you often think that perhaps your forecast or method is the cause, or that the market environment did not match the method.
Indeed, if your forecast is correct you win; if it is wrong you lose.
If the market environment matches, you could have won; if it didn’t, you lose.
That’s true, but forecasts cannot be consistently correct, and it is impossible to know in advance and continuously respond only to market conditions that fit your method.
Therefore, losing streaks are natural, and unless you prevent large reductions in capital, you cannot continue trading.
Market analyses and strategies from people who exited after a few losses might have been profitable.
Even profitable ones experience a few losses.
The fewer the attempts, the more it becomes a matter of luck; it can be called gambling trading.
“No, it’s not that I’m trading on intuition or randomly; I’m using a properly tested winning method, following the rules, so it isn’t gambling!”
Even so, in just a few trades, winning or losing is still a matter of luck.
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