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Thursday, October 11, 2012

Let the numbers shared. Stay alert!


Lesson: It is important to be able to distinguish the two scenarios below.

Trader Risks 2% vs. 10% on Each Trade

Trade #Total Account2% risk on each tradeTrade #Total Account10% risk on each trade
1$20,000$4001$20,000$2,000
2$19,600$3922$18,000$1,800
3$19,208$3843$16,200$1,620
4$18,824$3764$14,580$1,458
5$18,447$3695$13,122$1,312
6$18,078$3626$11,810$1,181
7$17,717$3547$10,629$1,063
8$17,363$3478$9,566$957
9$17,015$3409$8,609$861
10$16,675$33310$7,748$775
11$16,341$32711$6,974$697
12$16,015$32012$6,276$628
13$15,694$31413$5,649$565
14$15,380$30814$5,084$508
15$15,073$30115$4,575$458
16$14,771$29516$4,118$412
17$14,476$29017$3,706$371
18$14,186$28418$3,335$334
19$13,903$27819$3,002$300