POTENTIAL REVERSAL AREA
the bottom line is that your goal is to come up with risk management tools and a trading system that will enable you to survive these periods of bigger losses. Whether you are planning to focus on forex trading and trading CFDs, or you plan to focus on the stock market trading stocks and mutual funds- setting up a maximum drawdown could help you manage how much money you are willing to lose in each bad trade.
Remember, if you practice and stick to your absolute drawdown rule, the chances are you will become a part of the 1%. You need to be aware of your risk tolerance, and accordingly set an absolute drawdown amount to manage the risk in forex trading
Remember, if you practice and stick to your absolute drawdown rule, the chances are you will become a part of the 1%. You need to be aware of your risk tolerance, and accordingly set an absolute drawdown amount to manage the risk in forex trading
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