The Key to Success Focus On Draw Down

I want to discuss one important thing in this forex business, the important thing is Drawdown, how to suppress drawdown as low as possible

1. Set the risk in opening the position as small as possible, with a count of lots or a calculation of what percentage will be risked every open position, the best is only 1 percent of capital, if we lose successively up to 10 times, then our balance is only reduced 10 percent, but this is not a factor that can be underestimated, maybe we should stop first and review our trading plan by practicing using a cent or demo account

2. Reducing the risk if we keep losing, the understanding is, if we lose more than 10 times, maybe we press our risk again by reducing the ratio to 0.5 percent per open position, instead we double our lot for revenge, and after capital or our balance goes up and recovers 100 percent, we can increase the risk again to 1 percent

3. Set the amount of risk per month, the understanding is that if we set a risk of 10 percent per month, and within two weeks our capital has lost 10 percent, then we will stop entering the market and open positions in that month, and we must wait for the next month , why is that, because sometimes sometimes our trading plan and trading strategy are not suitable for this month, but next month is very good and in accordance with our plan, then why should it be forced

4. If the three tips above all fail, maybe we should improve ourselves and see ourselves, what's wrong with us, because the forex market is never wrong,

the picture below is just a supplement to my thread, there is no intention of promotion, if traders in this forum want to add or correct my thread, I thank you

if our drawdown is low that means our trading is safe and sound, not high risk