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Glosario de trading

Risk of Ruin

Risk Management

Qué significa

The probability that a string of losses wipes out your account completely. Higher risk per trade means a much higher chance of going to zero.

Ejemplo

Risking 50% per trade, six losses in a row (a 1.6% chance) leaves you with 1.6% of your account. Risking 1% per trade, even 20 losses in a row still leaves you with 82%.

Error común de principiantes

Beginners think a high win rate protects them. With 20% risk per trade, a perfectly normal six-loss streak destroys the account, no matter how good the strategy is.

Términos relacionados

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