We began our ‘Money Management’ series with this article.
The “Money Management” playlist on YouTube can be found here.
We continue, from our last post on this topic that you can find here.
We have discussed a series of principles in the topic of money management. Risk Mitigation and position sizing. Profit taking. Risk-reward ratios. Trade Management.
And in that last entry regarding trade management, we stated that there was some things that one would need to keep track of in a trading ‘plan’ or spreadsheet. The average profit. Recording each loss, so that you can understand your average loss size. Recording the average time spent in a trade. This will assist you, in your own trade management.
There is another metric one needs to track …
That of drawdown.
Which we discuss types of drawdown the following entry in our Money Management series …
(After the following video, we continue the series of ‘Money Management’ in this next entry … )