Why Are Drawdowns Important In Forex Trading?*

Asslam O Alaikum

forex mein kami ko samajhney ki teen barri wajohaat hain ke aap ko aik behtar tajir ban'nay mein madad mil sakti hai



Knowing Your Historical Drawdowns Will Help You Predict When The Next One Should End

misaal ke tor par, agar mein jaanta hon ke mera ost dara down do haftay taweel hai, agar mein dara down mein aik hafta hon to mein pareshan nahi hon ga. agar mein aamdani ke liye apni trading par bharosa karta hon to yeh bhi qeemti ilm hai, kyunkay mein –apne account ki qeemat kam honay par raqam nikaalte ki bajaye jab account buland maqam par ho to nikalna pasand karoon ga



Do Not Want To Destroy Your Trading Account

jab dara down bohat ziyada ho jata hai, to mein crash kar sakta hon aur jal sakta hon aur apna account tabah kar sakta hon kyunkay mera sarmaya muaser tareeqay se tijarat karne ke liye bohat chhota ho jata hai. mein pehlay se janna chahta hon ke kya mujhe –apne account ko tabah karne ka khatrah hai taakay mein usay honay se roknay ke liye apni trading ko adjust kar sakoo. aik hooshiyar tajir ne aik baar mujh se kaha," dosray din larnay ke liye zindah rehnapne trading tea ki sehat janna chahtay hain



You Want To Know The Health Of Your Trading

agar meri kami ziyada baar baar ya ziyada ho jati hai, to is se zahir hota hai ke meri trading itni achi nahi hai jitni pehlay hoti thi. yeh is liye ho sakta hai ke market ke halaat badal gaye hain. lekin yeh is liye bhi ho sakta hai ke meri salahiyaton mein kami aayi hai bhi wajah ho, mein tehqiqaat karna chahta hon. misaal ke tor par, kya mein ab bhi –apne qawaid ke mutabiq tijarat karta hon? ya mein jazbati tijarat kar raha hon jo meri hikmat e amli ka hissa nahi hain

Re: Why Are Drawdowns Important In Forex Trading?*

Drawdowns are important for measuring the historical risk of different investments, comparing fund performance, or monitoring personal trading performance.
How do you explain a drawdown?


Income drawdown is a way of getting pension income when you retire while allowing your pension fund to keep on growing. Instead of using all the money in your pension fund to buy an annuity, you leave your money invested and take a regular income direct from the fund.
How do you deal with drawdown in trading?


To handle, reduce, and decrease inevitable drawdowns we suggest trading small, trade many markets and time frames, but above all, make sure you trade within a wide margin of risk tolerance.












What is a good return to drawdown ratio?


In practice, investors want to see maximum drawdowns that are half the annual portfolio return or less. That means if the maximum drawdown is 10% over a given period, investors want a return of 20% (RoMaD = 2). So the larger a fund's drawdowns, the higher the expectation for returns.