don't worry about your losses

25 Jan 2019

what happens if you have a 1:1.5 risk reward ratio(means if you win you won 1/5% of your balance if you lose you lost1% of your balance) and doing 2 trade via any strategy that you prefer in a day (means your open trades should not be more than 2 at the same time).

at the end of the month, you do 40 trades so we see below what happens(20 days * 2 trades = 40 trade in a month):

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if you win 40 trades and lost no trades you make 60% in a month

(40*1/5)-(0*1)=60-0=60%

if you win 35 trades and lost 5 trades you make 47/5% in a month

(35*1/5)-(5*1)=52/5-5=47/5%

if you win 30 trades and lost 10 trades you make 35% in a month

(30*1/5)-(10*1)=45-10=35%

if you win 25 trades and lost 15 trades you make 22/5% in a month

(25*1/5)-(15*1)=37/5-15=22/5%

if you win 20 trades and lost 20 trades you make 10% in a month

(20*1/5)-(20*1)=30-20=10%

if you win 15 trades and lost 25 trades you miss -2/5% in a month

(15*1/5)-(25*1)=22/5-25=-2.5%

if you win 10 trades and lost 30 trades you miss -15% in a month (better change your strategy)

(10*1/5)-(30*1)=15-30=-15%

if you win 5 trades and lost 35 trades you miss -27/5% in a month (better change your strategy)

(5*1/5)-(35*1)=7/5-35=-27/5%

if you win no trades and lost 40 trades you miss -40% in a month (better change your strategy)

(0*1/5)-(40*1)=0-40=-40%

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Now we average results:

(60+47/5+35+22/5+10-2/5-15-27/5-40)/9=10%

On average you can make 10% a month

At the first sight you may tell yourself how I am going to be rich with only 10% monthly so please attention to below and see what happens if you start with 5000$

1) 5000*1/10=5500$

2) 5500*1/10=6050$

3) 6050*1/10=6655$

4) 6655*1.10=7320$

5) 7320*1.10=8052$

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12) 15,692$

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24) 49,248$

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36) 154,563

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48) 485,086$

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56) 1,039,825$

Congratulations!!! Now you are a millionaire after about 4/5 years of hardworking patience and discipline

This why we should not be afraid of our losses

GOOD LUCK
Abolfazl Abedi