PROBLEMS AND SOLUTIO...from May Belle

PROBLEMS AND SOLUTIONS FOR TRADERS Problems: 1. Worried about trades all day long 2. Personality and mood swings 3. Mindset confusion 4. Rushing for new trades 5. Trading assets for all of your money Solutions: 1. Plan your trades 2. Take small trades 3. Focus on affordable risks 4. Use trading system 5. Take breaks in trading 🤑💪✌️ #AllforYou# #IamAtrader# #TradeNotes#

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WHY USE FIXED % !?: The question one will have at this point is, "Why to use fixed % if it is so F'ing complicated!?" The answer to that is simple. Despite being more complicated, fixed % is actually objectively better by almost every other measure. With fixed % you generally perform better than fixed dollar during strings of losses and wins. As with fixed %, you lose less as you go down (because you only ever lose 1% of your balance), and you gain more as you go up (because of your winnings compounding). #BeginnerTrader# #AllforYou# #IamAtrader#

May Belle

The fixed dollar approach uses relatively simple math for breaking even as shown below. Example: 3 losing trades followed by 1 winning trade using 1:3 risk-to-reward achieves breakeven (ignoring trading fees and slippage) This risk-to-reward ratio itself implies the win-rate needed (lose $100 three times, win $300 once, you break even). The fixed dollar amount risk doesn't deal with compounding. As such, its logic cannot be used for fixed %. #IamAtrader# #BeginnerTrader# #TradeNotes#

May Belle

MATH NOTE: We used a simplified method for finding the minimum win-rate to make this useful and generally applicable. Our method is based on a given risk-to-reward ratio and assumes the max number of losses in a row to produce a minimum win-rate, it does not factor in all different possible loss strings and their probability. #BeginnerTrader# #IamAtrader# #AllforYou#

May Belle