This Calculator will put things in perspective and will enable you to set goals in your trading.
What I have personally observed is that a tighter stop will improve your bottom line but of course you will get stopped out more often.
I also observed that a higher Win-Loss ratio will greatly improve your bottom line. I would work on that instead of a tighter stop.
Your risk should be no more than .01 or .02 percent of your trading balance.
I put in .05 to demonstrate how powerful Money and Risk Management can be in improving your trading.
Check out and make different scenarios depending on your trading style.
Hope you can make use of this!
Ultimate
What I have personally observed is that a tighter stop will improve your bottom line but of course you will get stopped out more often.
I also observed that a higher Win-Loss ratio will greatly improve your bottom line. I would work on that instead of a tighter stop.
Your risk should be no more than .01 or .02 percent of your trading balance.
I put in .05 to demonstrate how powerful Money and Risk Management can be in improving your trading.
Check out and make different scenarios depending on your trading style.
Hope you can make use of this!
Ultimate
Attached File(s)
