FOREX TRADERS

[ElderWolf]

No problem at all. Draw down is the exact opposite of profits. If you're risking 3% of your portfolio per trade (max), then you're profits will be smaller than if you're risking 10%. However, on the other hand, in the 3% scenario, the amount your portfolio loses on the trade if your stop loss is hit will be smaller than the drawdown if you're risking 10%.

Some folks find that they're willing to make the big profits but cannot emotionally handle taking the larger drawdowns associated with that style of trading. They will therefore need to make adjustments accordingly.

The absolute most important thing is that a person has a consistent approach, no matter how strongly they feel about certain trades. If someone risks 3% on one trade and makes a gain, 3% on another and makes a gain...yet feels really strongly about a the next trade and risks 10%, they were correct twice and wrong only once...yet still lost a fair amount of money.

Does this all make sense? I hope this helps.