Imagine

There are two traders, 𝐉𝐨𝐡𝐧 𝐚𝐧𝐝 𝐒𝐚𝐥𝐥𝐲.

They both start with a $1,000 account.

𝐉𝐨𝐡𝐧 is an aggressive trader and he risks $250 on each trade (he also probably jumps out of planes without checking if his parachute is working).

𝐒𝐚𝐥𝐥𝐲 is a conservative trader and she risks $20 on each trade (she also probably has multiple insurance policies and wears a helmet to bed).

Both adopt a trading strategy that wins 50% of the time with an average of 1:2 risk to reward.

Over the next 8 trades, the outcomes are Lose Lose Lose Lose Win Win Win Win.

Here’s the outcome for 𝐉𝐨𝐡𝐧:

-$250 -$250 -$250 -$250 = BLOW UP

Here’s the outcome for 𝐒𝐚𝐥𝐥𝐲:

-$20 -$20 – $20 -$20 +$40 +$40 +$40 +$40 = +$80

So here’s the deal:

As a trader, you’ll encounter losses regularly, guaranteed.

But with proper risk management, you can contain these losses till it feels like an “ant bite”.

𝐌𝐮𝐬𝐭 𝐋𝐢𝐤𝐞, 𝐒𝐡𝐚𝐫𝐞 𝐚𝐧𝐝 𝐅𝐨𝐥𝐥𝐨𝐰 𝐟𝐨𝐫 𝐦𝐨𝐫𝐞 𝐈𝐍𝐅𝐎 😸