Continued
🕯 When someone trades in a fund account, what are the things called phase 1 and phase 2?
For example, if someone buys a $5000 account, the first step is called phase 1, which means they will use the following rule:⬇️
account size 5000$
trading period = unlimited
Minimum trading days = 3 days
Maximum daily loss 5% ($250)
maximum loss = 10% ($500)
Profit target = 8% ($400)
➡️ Consider this phase 1 or the first test. The main thing you need to see is that you cannot trade the entire account size just because it is $5000. As I mentioned above, it has its own rules.
What does this mean?
For example, if someone decides to enter a trade today and risks 5% ($250) of their account and exits at SL (at a loss), they will lose the entire account they bought because their daily loss rule allows a total of 5%. If you break that, you will lose the account.
So what should we do?
💵 When we enter a trade, we are not managing risk as if we had $5000, but as if we had $250. So when we calculate it in %, we should be thinking of our daily trade balance as $250. That means when we manage risk in the account, it should be as if we had $500.
⚠️ Because if we lose 10% of the total, we will lose the account.
⚠️ If we lose 5% per day, we will lose the account.
So this account's $4500 is useless. 😗
🕯 Our expected profit in phase 1 is 8% ($400). If we achieve this, we will move on to phase 2.🕯
Phase 2 continues......
https://t.me/Ecrypto_2
https://t.me/Ecrypto_2
🕯 When someone trades in a fund account, what are the things called phase 1 and phase 2?
For example, if someone buys a $5000 account, the first step is called phase 1, which means they will use the following rule:⬇️
account size 5000$
trading period = unlimited
Minimum trading days = 3 days
Maximum daily loss 5% ($250)
maximum loss = 10% ($500)
Profit target = 8% ($400)
➡️ Consider this phase 1 or the first test. The main thing you need to see is that you cannot trade the entire account size just because it is $5000. As I mentioned above, it has its own rules.
What does this mean?
For example, if someone decides to enter a trade today and risks 5% ($250) of their account and exits at SL (at a loss), they will lose the entire account they bought because their daily loss rule allows a total of 5%. If you break that, you will lose the account.
So what should we do?
💵 When we enter a trade, we are not managing risk as if we had $5000, but as if we had $250. So when we calculate it in %, we should be thinking of our daily trade balance as $250. That means when we manage risk in the account, it should be as if we had $500.
⚠️ Because if we lose 10% of the total, we will lose the account.
⚠️ If we lose 5% per day, we will lose the account.
So this account's $4500 is useless. 😗
🕯 Our expected profit in phase 1 is 8% ($400). If we achieve this, we will move on to phase 2.🕯
Phase 2 continues......
https://t.me/Ecrypto_2
https://t.me/Ecrypto_2