Understanding draw down:

Drawdown is defined as a considerable reduction in your account due to a series of losing trades. This can be calculated by getting the difference between the highest level of account and its lowest point for instance when you are in a social capital of $10,000 has grow to 10,500 can you undergo a locking that bring it down to $9500 your drawdown is is $1000. Typically look at ra down as a percentage of one account balance for instance when you loss 5 trades in a row at 1% risk per trade your drawdown is 5%. Aside from looking at one profit and loss in pips or percentage da Don also plays a key role in managing risk this allows you to determine how much of your account you can stand to loss before being able to recover and land back in the green. That truth is that traders will have their bad days every now and then, and it's not surprising if one undergoes a tribal losing Street. What's important is that you are able to manage your risk for trade and then you improve the expectancy on your grades such that a good winning trade can allows you to bounce back from most if not all of those losses. For example, if you start with 10,000 dollar initial account balance and risk 10% Path Read if you undergo a lossing streak of 5 consecutive trade you will wind up losing half your account in just a few trades you would need a really good winning trade or a set of profitable once just to be able to make that amount back. On the other hand if you control your risk to just 2% per trade undergoing a lossing streak of 5 consecutive rates will just give you a manageable drawdown of infested if you are able to win a couple of 2-to-1 return on risk trade then you will come close to recovering that are down in no time. Have you have probability noticed, the reward ratio also plays a key role in determining how you can recover from thread on this is a part of one trading plan that must be developed based on risk performance and trading style for instance if you are saying trader that prefer holding on the rates for days and keeping white stuff you can afford tourist a full position size on a single trade for dividing among a few trade if you are a step trader that opens and closes multiple positions in minutes you can risk smart far is trade then just go for large reward to risk ratio in order to bounce back quality from tiny losses. At end of the day, what matters is that you to setup your risk management rules such that you can afford to trade again and hold on to most of your account even with a losing or a large drawdown. Of course it's also important to do your homework and improve the probability of winning by conducting through fundamental and technical analysis. thanks.

Re: Understanding draw down:

assalam o alikum all members bahut he acha topic diya gaya ha is par bat karty han ka understanding draw down to ap ko samjhan pary ga kun ka is ka bahut he ahim kirdar ha market ko analysis karny main draw don jab ap koi line draw karen or koi indicator jo ap ko bataye ka market na down jana ha to us ka lye hamen phely analysis ko samjhna ha

Re: Understanding draw down:

Trading mein drawdown bahut acchi technique hi Jaoge trading ko and has Karti Hai Jitna Jyada Ham Iske bare mein learn Karenge utna hi Hamen Uske bare mein knowledge Hussain Hoga aur Jyada Agar aapko bataya Jaaye to draw down a Kaisi technique Hai jisse ham log se baith sakte hain aur profit Hassan kar sakte hain ya Ek patton Ki Tarah hai aapko chahie ki aap acchi aur informative knowledge share Karen Jaise ke is Jaisi Ho tabhi aapko Achcha bonus bhi Hasil Hoga aur aap Hamesha Kamyab rahenge

Re: Understanding draw down:

G hy bilkul thk kha hy jinni hm forex main drw or down ko semjh GA utna hi kamyb Ho ga hm market ko semjhna ky Lia hm in ko understand krna bht hi zarori hy hm jitna soch semjh kr wark kra tb hi kamyb Ho ga jinni ziyada mhynt kra ga konwldg or experience sa wark kra ga utna hi kamyb Ho ga

Re: Understanding draw down:

hum is mai apny boss kdu ap eh hoty hain hum is mai night mai be kam kar sakty hain hum is mai day maai eb kam kar sakty hain is mai hum agar lalachi ban ky kam karty hain to hamra loss hain hum is maki bager balance account bana ar be kaam kar sakty hain hum is mai aik be galti kar dety hain to harma apna he loss hain na

Re: Understanding draw down:

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Re: Understanding draw down:

buying and selling mein drawdown bahut acchi approach hi Jaoge trading ko and has Karti Hai Jitna Jyada Ham Iske naked mein research Karenge utna hi Hamen Uske bare mein information Hussain Hoga aur Jyada Agar aapko bataya Jaaye to attract down a Kaisi method Hai jisse ham log se baith sakte hain aur earnings Hassan kar sakte hain ya Ek patton Ki Tarah hai aapko chahie ki aap acchi aur informative knowledge percentage Karen Jaise ke is Jaisi Ho tabhi aapko Achcha bonus bhi Hasil Hoga aur aap Hamesha Kamyab rahenge

Re: Understanding draw down:

Ji han bhai jaan aap bilkul theek ka rahe hain aapki is baat se main agri karta hun kya aapane sawal Kiya hai hamen chahie ki jyada se jyada hamen mehnat karni chahie agar Ham ismein jyada se jyada mehnat karte Hain To Ham ismein achcha knowledge hasil kar sakte hain aur ismein acchi earning hasil kar sakte hain hamen chahie ki isliye jyada se jyada mehnat Karen aur acchi arvind hasil Karen