Death by Piranha Bites

Death by Piranha Bites

  OK, so, the headline is a bit dramatic. But I’m not the first person to do that and, as you will see below, there is a relevant point behind it. There are two ways to blow up your account. You can lose a large portion through placing too much risk on each trade. Even if you have a trading plan with, let’s say, a 75% success rate – highly unlikely – it is still statistically likely that you will encounter times when you lose 5 trades in a row. If you put 10% of your fund at risk per … Continue reading