What we commonly see with a lot of newer traders is dispropriate risk-taking and not understanding or implementing very basic principles. Trading is a probability game and for your edge to work and become clear there needs to be a lot of occurrences. If you're risking everything you have on one or two trades even with the best thesis in the world there is absolutely no chance of that edge having the ability to appear. Overly basic to understand but yet so few implements. This may be one of the reasons for such a high failure rate.
The next most common and major issue we see with traders is not keeping their risk RELATIVE from trade to trade. If you have 10 trades in a day you want to ensure the risk is RELATIVE from trade to trade. What is all too common is traders not working out their risk and keeping the same size no matter what the range, the setup or time frame. You may have done this yourself and had 9 great trades and then wiped all your profit out with 1 poor trade. Implementing this simple but yet powerful principle of keeping your risk RELATIVE will give you a fighting chance to ensure the maths is always on your side.
Always start and work everything back from your Risk through managing your size. If its a high-risk setup in a high volatility environment like out of the gate you may want to risk ⅓ or half of your normal risk per trade. Remember we can’t control the outcome but we can affect the overall outcome by managing what we can control our Risk.
At TraderEquity we are all about managing risk intelligently and have a Max Daily Loss on all accounts which helps to give you a solid framework to build and scale your thesis.
Please Note: We can NOT accept any US-based traders, this restriction is based on their location rather than their nationality and we can NOT accept any Canadian based traders directly.