Disliked{quote} Hello Profitfarmer, You are right. At a point, not too disastrously late, the trader recognized the reality. However, why the situation might have got the complication? If you are 10+ years "invincible" in your consistency, there still might be market changes you could not mentally adapt or your mind could be negatively affected by something. In that particular case, the trader exploited a "friendly" insider data. He had trusted the source but information provided turned wrong (friendship versus business, market knowledge, etc.). Whatever...Ignored
the simple answer in 2 parts:
- look on the DD recovery table i had posted above
- decide what you can relative comfortable recover, without taking large risks....pick your DD% limit...and live to trade another day!
(hint: with -95%, the corresponding recovery number is: +2000% needed to BE!)
there is always, always another trade!!
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