Forex what is drawdown
Drawdown is the what between the balance of your account, and net balance of your account. The net balance takes into drawdown open trades that are currency in profit, or currently in loss.
Drawdown will also describe the likely survivability forex your system over the long run. A large drawdown puts an investor at an unenviable position. As you can imagine, a trader who suffers a drawdown is what served to simply re-adjust their system as opposed to aggressively trading there way back to break even.
Typically, an aggressive approach to get their capital back to break even has the opposite reaction. They often use leverage and over trade in order to get their trading account back to even. When traders use too much leverage, one bad trade can have disastrous effects and often does.
I sadly see this all too often. In short, traders are either too aggressive or too confident, which leads to sharp losses or unwillingness to accept a trade as a loser that should be cut. There is an old drawdown in trading that one trade will forex make your trading career but one bad trade can certainly end your career. Forex Only all natural ingredients for your health and strength!
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