How Clusters of Bad Trades Can Break Your Account
🎯 Surviving the Trading Game with Dr. David Paul
Learn why risk management is a non-negotiable skill in trading. Dr. David Paul breaks down the impact of winning and losing clusters and explains why you should never risk more than 1-2% of your account per trade. Discover how to keep your account alive through difficult times and why even a 50% win rate system can lead to disaster if you over-leverage.
👉 Key Takeaways:
The effect of clusters in trading.
Why traders should risk no more than 1-2% per trade.
How to avoid going broke with a 50% system.
The math behind clusters of losses and their impact on your account.
🔗 Explore More:
Website: https://www.comlucro.com.br/
Subscribe to the channel: https://comlucro.com.br/youtube
💬 Join the Conversation:
Leave your thoughts or questions in the comments below—we’d love to hear from you!
#RiskManagement #TradingPsychology #LossClusters #DrDavidPaul #TradingTips #1PercentRule #MarketInsights #TraderMindset
00:00:00,080 --> 00:00:05,440
And it’s this clustering effect that
makes playing the game so difficult,
00:00:05,440 --> 00:00:12,000
because you get long runs of good trades
where you think you’re god, and the long runs,
00:00:12,000 --> 00:00:17,640
unfortunately, of bad ones where you feel
like something that is under your shoes. Well,
00:00:17,640 --> 00:00:24,000
the first objective is to live through
the cluster arithmetically that you don’t
00:00:24,000 --> 00:00:31,280
go broken in them, because you can quite
easily have a cluster of five bad trades.
00:00:31,280 --> 00:00:37,840
Five bad trades happen on a 50% system
every 32. So if you were to bet 20% of
00:00:37,840 --> 00:00:43,280
your lot on any one particular trade,
you go bankrupt every five. The gist
00:00:43,280 --> 00:00:49,320
of all of this is that you should not risk
any more than 1 to 2% of your kitty on any
00:00:49,320 --> 00:00:55,200
one trade. So if you’ve got 100,000 grand
in your account and you’re new to that,
00:00:55,200 --> 00:00:59,920
you should not risk any more than
1 to 2% of that in any one trade.
