Gold Trade Psychology Note:
When you have great money management, only risking 1% to 2% account value per trade, with a great trade plan…Fear is removed.
Your trade plan should always be back-tested and have a positive growth curve. Based on your trade plan, even with a losing streak, you should still be profitable.
Example:
Average winning trade is 10% account value
Average losing trade is 1% to 2% account value (risk management)
Even with a 40% win rate 4/10 trades you are still growing your account.
6 losing trades at 2% = 12% drop in your account value.
4 winning trades at 10% = 40% gain in your account value.
Total gains: 28% Good trading day, week, month, etc