Most of us will up the ante when we find ourselves in trouble. Losing traders often increase their positions to try to save their trades. A better option when losing money is to step back and pause to think. The 6% rule sets a maximum drawdown percentage for each account for the month. If you reach the limit, you will stop trading for the rest of the month. The 6% rule forces you to get out of the water before the piranhas attack.
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When your total losses for the month and the risk limit of your open positions reach 6% of the total amount of your account, the 6% rule will not allow you to make new trades for the rest of the month.
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We all have periods of winning streaks in our dealings with the market, and we should trade aggressively when every trade we make turns into gold.
Likewise, there are times when our trading goes really bad. The trading system is completely opposite to the market and loses money one after another. At this time, it is especially important to re-examine this period, not put too much pressure on yourself, and take a step back and calm down.
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Professionals may take a break when they lose money, but they will continue to watch the market and wait to re-match the market rhythm. Amateurs are more likely to increase the size of their trades until their accounts are seriously losing money. The 6% rule will make you pause, and your account is still generally intact.
#新币挖矿&盘前交易USUAL
