DislikedHey Paul,
The success in Forex market in my humble opinion is RISK MANAGEMENT. Its not HOW MANY pips u make, its about MINIMIZING the LOSSES.
Cut the losses to the minimum and Keep the profits running. My friend told me a tale about a famous Russian trader who was excellent trader. He got over 1.3 millions. He made an EA and he LOST everything in one single night. The EA opened about 1000 trades. Most of his losses were due to a spread.
Traders need to control the risk and cut the losses.Ignored
I suppose the EA he made was trading the same strategy which he obviously was a bit too confident with.
Fact is, you can always recover any amount of a losing strick if you cut down on losses and hit a longer lasting profitable trade. If you spend too much on the losses, this single waited-for trade won't help.
Since you normally calculate your risk based on your equity, it is again important to cut down on losses, because it takes more positions at the same risk level to recover the amounts lost at a higher account balance.