Your trading can be risk free or only you have 2% risk chance. This is generally violating
trading rule follow by many traders and they need to find why to lose money.
Many traders lose their valuable time of earning profits in a
particular trade. It will not be good. Stop loss rule which is 2% may be main
reason of violation in trading. For a desire result how a trader may be more confident
it is not an issue.
Intentionally
Many traders like to start their forex career by thinking they will successful
in one trade and become milliner. And their entire life will become more
colorful.
The markets
Gurus narrated this fantasy. This is the inflexible reality that inexperience traders get terrible loss in a
single trading which kick out them from the game. This is awfully complicated to
overcome from big losses.
total cash
Loss and total gain reach at unique range of 25 to 100% for example you begin
trading from $2,000 and lost $400 it’s
mean your lost rate is 20% or earn $800 equal to 40% If your loss is 80% you
need to return 200% which is too
difficult and simply you need to let your account initial level.
You can face
a risk for blow your account if you continuously in that trouble.
How can 2%
Rule help you?
You will never
suffer such a big loss this is a best way to avoid from this happening.
Therefore 2% rule is significant for traders. If you implemented 2% per trade
chance of lost it’s mean you are going
to do 10 repeatedly unsuccessful trades as a result you can lose 20% of your
account. You are highlight in extensively losing condition after you do extremely
bad trade.
The 60% of
your capital will out of harmful condition but if you are continuously in
certain trade you will be in bad position. Therefore your goal is to gain 80%
back it is good but the better achievement for you is 400% if you lost 75% of your
capital in this business. you might survive in this hard-hitting market if your losses is under control by you this will be cost effective way.
