Disliked{quote} The reason you don't risk as much as 5% is because even with a 70% win rate you can quite possibly have 4, 5 or 6 losses in a row. This is known as draw down. Surviving draw down is the key to success. At 5% with 4 losses you are down 20%. That affects your ability to trade, mainly due to doubt and fear. What about being down 25%? The larger the draw down, the harder it is to pull out of.Ignored
DislikedAll the people that talk about trade 1% do so because they cannot trade, they have a margin of error so big they can loose most of their trades and still make money. Who wants to trade like that, death by a 1,000 cuts while you tell yourself you are trading correctly. You are wasting your time. Good trading is about the correct analysis of the market, the precision entry and having the patience to wait for all the levels to line up. Most of the traders here are chasing the market, totally clueless on direction, but most importantly of all...Ignored
oh btw, 1:2 or even 1:3 (sometimes more) are VERY easy to hit in daily charts (my timeframe)