A. what you need to avoid
- Do not try to rush to make massive gains either pips or % returns
- Do not open yourself to large risk in hopes of equally large returns or profits
- Do not assume taking small risk trades will not grow your account
- Do not sacrifice trading equity for poor planning or lack thereof
B. What you need to aim for
- Determine how to realistically anticipate a favorable reward to risk model
- Learn to respect the risk side of the trade setups more over the reward
- Identify trade setups that permit three reward multiples to one risk or higher
- Frame good reward to risk setups that have little impact if unprofitable
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You need time to let compound interest do its magic
It doesnt take many trades to make 50% in a month but it does take highly selective trades
Pay the most attention to the drawdown, thats the most important. We want to avoid drawdown.
Focus on 6% of your equity per month
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Know where to take profits before youre getting in
Banks trade off of daily levels
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