In forex trading, drawdown (DD) refers to how much money you have lost in your account balance or from a particular trade. Trading strategy to handle drawdown so that you can win more money than you can lose.The single most important reason why you need to keep drawdown under control.This trading guide will explore what drawdown is in forex along with other key trading concepts like: To transition from a losing trader to a successful forex trader you need to understand how to control your drawdown. In turn, this allows you to take proactive steps before your drawdown size becomes untenable. Drawdowns help you understand the survivability of your trading strategies over the long run. Experienced traders generally place a high value on managing their risks when trading so they diligently monitor the health of their trading positions and portfolio. Managing your drawdown is one factor that separates experienced or successful traders from inexperienced ones. It also involves protecting your capital by minimising losses or drawdowns. ![]() ![]() Successful Forex trading is more than buying and selling currencies for profit. Drawdown is managing the reduction in your trading capital incurred before losses cut into profits. One of the key rules to successful Forex trading is controlling your drawdown. What Is Drawdown In Forex Trading And How To Handle It?
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