What risk to take on a trade
The most important think to do in trading is to preserve your capital.
Don’t worry if as a newbies you not having profit; first concentrate on not loosing your capital.
-Skydivers take care of their parachute.
-Divers take care of their air supply.
-Mountaineers take care of their ropes.
— The trader takes care of his capital! —
There are 2 types of capital losses to avoid
Large losses Also knows as SHARK BITES
Never risk more than 3% of your capital on a trade.
Take in consideration that our STOP LOSS value is guided by the analyse, it is an objective information.
Small losses Also knows as PIRANHA BITES
To avoid small losses cumulated:
If we loss more than 6% of our capital; we stop trade for at least 24 hours.
Max SL (%)
Daily maximum losses acceptable
If our daily losses reach 6%: STOP TRADING FOR 24 HOURS.