All language subtitles for 1. money management US

win, a small loss, or a break
even. You should never ever

have access to a lot of capital
right now and that's okay. Be

time should be on you becoming
the asset yourself. You may not

it's a certainty like it's it's
guarantee is no way around it.

it is that you'll experience a
large string of losses and

pushing near 70% you will still
be at risk of stringing

that it's almost a guaranteed
certainty that you will

because you are merely left
with much less money in your

so your strike rate is just
another way of saying your win

and if you are only risking 1%
per trade it's extremely

psychological impacts of those
draw downs and that can be a

very vicious cycle that is
extremely hard to climb out of.

account but you also have to
deal with the negative

first but as the drawdown
percentage increases it becomes

started. When you risk too much
and lose, your chances to

this small difference could
appear pretty nudgeable at

become far more difficult here
is a table showing the drawdown

balance of $9900 if you make a
profit of 1% you will now only

ever harder to recover losses
10 to 20% draw down can be

and you take a full loss of 1%
so that you lose 100 pounds

you have no problem getting
funding because remember

experience a big loss. If you
can get rid of big losses, you

will no doubt take thousands of
trades and all of those

table clearly shows how
important the difference that

that you are worthy to handle
and manage that larger capital

have a great chance of being
profitable for years to come.

within a 1, 000 trade sequence
depending on your strike rate

It's just a mathematical
concernty. Now hitting eight

trading for the long term over
the course of your career you

drawdown then you have no
problem finding a big investors

rate so let's say you're
actually a pretty good trader

right and even if your strike
rate is very very good and

loses in a row has a 50%
probability so the same chances

extremely high. It's a near
certainty. You can blow your

probability of you losing a
number of consecutive trades

risk that much capital on a
trade and your risk of ruin is

to the best of traders anything
can happen in the markets

priority over optimization of
profit. A bulletproof risk

you are a more experienced
trader who is relatively

generate an income from that
capital and then in turn,

that is you. When you are yet
to reach consistency, there's

almost 40% just to get back to
break even. This is insane. Do

your training journey, the
golden rule will be your main

do you think would happen just
a single blow would cause it to

so having what you may consider
to be a small account it's no

that's only just in a 1, 000
trade sequence. If you are in

the primary reason that we cap
our losses at 1% because if

if the sub was attacked again
by an enemy ship now what do

investors care more about draw
down and potential loss than

referred to as being in a 1%
drawdown. At this new account

recover your capital fully are
very very sin and it's not only

and you've got a strike rate of
around 60% this table shows

excuse whatsoever to risk more
than 1% because if you can

those solid foundation now with
tight risk management

quite easily recovered but
beyond this level it starts to

trading. You have to take it
very seriously and be extremely

model it forces your risk to
progressively get smaller and

would experience some extended
losing streaks until you gain

anything so make sure you
respect that and keep your risk

break even from where the
drawdown started so if you

together six to seven loses in
a row at some point it happens

risking only 1% per trade will
make because it's extremely

trade you've now lost around a
quarter of your account and if

entire account within a month
with relative ease. And even if

surprise and humble you because
here's a table that shows a

take. So, when you're first
starting out in trading, you

losing trades and this is
calculated by the difference

reason. As I said before, the
market will never fail to

probabilities in that table
will then shift along to the

dividing your account into 100
equal positions and accept a

infinite capital and infinite
market equity that theory may

trades in a row at let's say 5
percent risk. You've got to

dice one last time and they
double their risk at 16% and

time that you will experience a
string of losses for whatever

hold water but in the real
world it's pure fantasy and a

your trading account just like
the submarine, right? By

Uh you know, I really can't
emphasize enough at just how

ensures that your account
harnesses the power of

assumed all of that massive
risk well on the way to nearly

doubling their risk to 8%
losing again and putting them

trade and they're now risking
4% but they lose three trades

account depending on the level
of risk that you choose to

occurrence while training, all
measures should be taken to

trending conditions you know
some amateurs think that

your account. You can clearly
see that this is how you remain

then your account will fall to
9, 900 pounds. This is also

of losing trades your losses
will progressively get smaller

you're in a situation where you
lose 50% of your account, you

make ninety-nine pounds. So
this only brings the account

take hit after hit before
sinking and giving it enough

is to never risk more than 1%
of your trading account per

disciplined, right? You have to
be professional and here's a

you'll be able to do it on a
large account you have to prove

likely you know at some point
in time you will lose five or

table that shows what effect a
losing streak can have on your

experience a drawdown of five
or 10% you pretty much just

six trades in a row which is
completely normal by the way

that happens you will now have
to put out a huge return of

fill up and sink immediately
right now take that same

have to double your money just
to get back to where you

of that submarine have been
completely hollowed out so now

back up to nine thousand nine
hundred and 99 pounds. Your one

have to make five or 10% back
but once you start to lose over

20% of your account you are
really to tread in deep water.

you think would happen this
time only one of the

dedicated to highlighting the
various risks that you are

make nearly 50% just to get
back to break even. Anything

back in the game and making new
account highs once again all of

that sub was then attacked by a
missile from an enemy ship what

mathematically harder than
making the loss in the first

flipping aheads or tails in a
coin toss. If you lost seven

place. So, If you were to start
with a 10, 000 pound account

versus the profit recovery rate
required just to get back to

build a track record with small
consistent profits with minimal

Small, regular profits are key.
Remember, your focus the whole

highs may be achieved once
again. Right, I want you to

principles and if you can do it
now on a small account then

consistent, it is still almost
a certainty at some point in

expected even with a high win
rate but now they're down minus

in the road so you only need a
couple of winners to get you

it to reach that consistency.
And that golden rule is what is

management principles in place
so you can survive those bumps

your trade should end in one of
four ways. A small win, a big

lower than a 60% strike rate
and you can see just how likely

The more you lose, the harder
it is to recover and this is

false belief that they'll get
away with never fully realising

sure way to blow your entire
account. In the early stages of

not trade like this. You can
clearly see how absurd it is to

by keeping the risk portrayed
to 1% or less of your account

going to protect you in the
meantime. So, draw down is

in a huge hole of minus 15% to
climb out of. So they rather

people don't realize is that
recovering a loss is

carefully. Ready to play? Now,
those are not my words, those

most efficient way possible by
teaching you exactly how we

essentially the reduction of
your capital after a series of

experience at least six if not
seven losing trades in a row

manageable to get back out of
that draw down in just a few

keep it as small as possible
and the best way to do this is

some more experience within the
markets over time and it's

between a relative peak in
capital minus a relative

trade to try and make it back
and more but then if they lose

and they decide to double down
their risk again on the third

trades and make back that 5 or
6% but if you've risked 5% per

strategy. Even the best trading
strategy in the world can

wrong. In speculative trading,
protection of capital takes

know, it's pretty much an
absolute certainty that you

That is obviously not smart
trading because their risk far

think of a submarine and now
imagine that the internal rooms

important risk management is
for your long-term success in

trough. Now, although account
drawdown is a very normal

and the reason that this is so
important and what a lot of

what is the golden rule in
trading well a major major key

portrayed, but you can clearly
see that it's only going to

and in the unlikely event that
you manage to lose 10 trades in

compartments would fill up and
leaving the other ninety-nine

pound sure even though you lost
1% and you made back one now

going to be underwater very
quickly. Others might be a

to 1% of your account, you
increase the probability of

the course of your trading
career not only does a 1% risk

encourages traders to double
their risk after each

many cases, unethical minds in
the world. You're up against

it is essentially just one big
giant hollow floating tube if

actually maintaining that
success over the long term so

blowing up their account just
to make one percent profit.

maximum loss of just one
compartment at a time. And this

the best trader that you can be
with what you have now. Build

take a few hits to their
account and suddenly they're

outweighs the reward every
time. Now gamblers love systems

you saw how consistent profits
become progressively larger as

called a reverse compounding
effect in the previous lessons

compounding on the way up
whilst also taking advantage of

seven percent. But they
continue the gambling system

way of avoiding risk because
you are eliminating the risk

positions, and how we manage
risk. So your learning curve is

rapidly shrunk but you'll still
have to work extremely hard at

in the game for the long term
so you can survive the

down so during periods of
account drawdown that 1% risk

exactly the opposite systems
such as the it actually

going to be a learning gap. I'm
here to fill that gap in the

model actually preserve your
capital but during a series of

therefore of not only becoming
a successful trader but

they finally get the massive
winner that they were after.

a loss. Potentially in you know
a hypothetical environment of

losses the monetary risk on
each trade that actually

little bit more prudent and
think that 5% risk portrayed is

they're being sensible by risk
managing by only risking 10%

But look, their total PNL is
now only 1% profit. So they

instead of learning their
lesson they think they're smart

trade, how to apply our
strategies, and how we manage

like the Martin Gale because it
allows them to buy into the

they lose that trade they then
decide to risk 2% on the next

consecutive loss so if they
risk 1% on the trade but then

becomes progressively smaller
and smaller and it forms what's

that second trade at 2% risk
they're now down 3% overall so

so the simple act of risking a
fixed percentage portrayed it

inevitable run of losses that
you will string together over

long enough to then enjoy the
calm blue waters of profitable

survive another day, right? So
with this anecdote, think of

the reverse compounding effect
during those periods of draw

survival technique is critical
in keeping your account alive

okay but look at the protection
that 1% risk portrayed does for

submarine but this time build
strong dividers so that it now

smaller sounds pretty logical
right yet most traders do

a result of compounding but the
inverse is also during periods

trade never risk more than 1%
of your trading account balance

per trade. Why? Well, by
capping the risk on each trade

like this can be made back with
just one trade and new account

contains 100 water tight
compartments all in equal size

trades. So, if your focus is to
protect the money in your

attacks to keep the submarine
afloat. So the submarine could

making quick and easy money
behind. The first aim is

begin the risk management
module with. Because As you may

in a row which is perfectly
normal by the way and even

possibly said it better myself,
and it's a very apt way to

a row at a capped 1% risk per
trade, you still have more than

capping the risk to 1% on each
trade, you're essentially

90% of your initial balance
left to trade with. Draw downs

conducive to your strategy
again and this module is

increase the probability of
protecting your capital and

time to escape enemy fire and
return to safety and live to

your survival during those
unfavorable market conditions

likely to face as a trader and
by implementing the risk

money due to their lack of
respect for risk management.

you're playing with some of the
sharpest, fastest, most

corrective price action can
result in a series of losing

management principles we're
about to cover you will

individual strategies and there
are times when choppy

they're not always going to be
optimal 100% of the time for

make sure you do not become a
part of that 9090 rule like the

account during those chopping
market conditions, then you're

you can survive to fight
another day. Capital will keep

are brilliant technical
analysis but they still lose

your first priority. Because if
you still have capital, then

going to remain afloat to
rebound from these losses and

then make new account highs
once the conditions become more

make from this trade? But
potential profits are

the computer that can react
fast than you, the trader who

seductive. The first question a
professional trader asks is

by understanding how the enemy
thinks and acts, by having a

always, how much money can I
lose on this trade? So your

eventually put up your account
if it is not integrated strict

first and foremost is actually
one of a professional risk

money management principles. So
when new traders enter a trade,

manager. This is the concept
that many continue to get

are the words of an infamous
trader called Tom Dante, who

I'm not entirely sure how
accurate is but as it goes, it

three objectives as a trader
are to conserve capital,

you in the game. Now, I've
known a number of traders who

The market will always humble
you. In market conditions,

management regime is paramount
to any successful trading

increase your account size.
Protecting your capital must be

management principles that have
stood the test of time and will

statistic that loves to get
thrown around which you know,

masses. So although you are a
financial trader, your job

any risk management combined
with the abuse of leverage,

period. So, I'm going to teach
you sound professional risk

capital in the first 90 days of
them opening an account. Now,

their primary thought is often,
you know, how much money can I

says that roughly 90% of retail
traders lose 90% of their

the number one reason that this
occurs is due to the absence of

have probably heard already,
you know, there's an infamous

some of you may have heard of,
and I don't think I could have

survival. Your absolute first
goal is to learn how to stay in

solid game plan, and by picking
your battles very, very

has more experience than you,
the fun that has more money

others that will misinform you
and the inner voice that will

do its best to undo you. So,
leave all of your dreams of

than you, the insider that has
more information than you, the

the game and you can only do
this by mapping the territory,

intelligent, well-informed,
stubbornly irrational, and in

Welcome to the hardest game in
the world. Unfortunately,

the upside potential return