Basic Math of Losses (graphic)


It makes sense to keep your losses small on individual trades and more importantly on your overall account. Capital is required to conduct the business. This graphic explains clearly why losses are so devastating. If you lose 50% of your capital that requires a 100% return just to get back to where you started. And if you have any basic trading knowledge, than you understand it is no easy feat to double an account, especially without taking substantial risk.

Post edited by JoshWinter on
Always a Student. B)
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