Some people survive because they know how to deal with risk. For any setting that you want to prove to be an advantage, do the opposite to also prove the disadvantage. How would it change or improve the end result on a yearly basis? If we change that take profit goal, you can find out with a simple strategy test. You might think that the market is going up or down and it does the exact opposite of what you expected.

 

What kind of trader are you? There are some people who are willing to trade whatever somebody recommends. I just do currency pair trading, also known as forex trading. I don’t trade stocks and I don’t trade options or cryptocurrencies. Traders get paid for risk. They buy and sell something to make a profit. Would you be satisfied with just two trades in a whole year? Or let’s use the opposite example and you do 1000 trades a day. I once did a research and I found out that some of the so called professionals are actually actors that you could hire for $5 on a website. We need to work. We drive around, buy stuff and spend our time with lawn mowing fixing things.

 

Or we are forced to do paperwork. Even if math is not your thing, maybe you wouldn’t expect to be lucky enough to survive when your strategy is too risky. Going with a low risk setting will also decrease the probability to make profits. But I think it is a better idea to protect the capital. Do you think this trading thing is too complicated for you? I know that there was a time when things like writing, reading or driving a car seemed to be a complicated thing. Errors are not avoidable. But I learned from my errors and now I avoid bad brokers.