Equity Curve - A Reflection of Your Trading Performance

Hi Traders, today's topic is regarding 'Equity Curve' as the best reflection of your trading performance. Personally, when I was new into this business It was uneasy for myself to put aside the monetary aspect and truly trust the process. In trading, money comes and goes in a blink. To be consistently profitable, you MUST learn how to protect your existing capital, and your profits. Money will follow once you have consistent execution and action plan.

"In trading/ investing, It is not about how much you make but rather how much you don't lose." - Bernard Baruch

Equity Curve A

- Reasonable Risk-to-Reward
- Emotional detachment
- Shallow drawdown
- Consistent execution (Back-tested strategies)
- Comply to trading plan

Equity Curve B

- Constantly search for the 'best' trade (Gambling behaviour)
- Steep drawdown (Impulsive decision)
- Over-trading & Revenge trading
- No clear trading plan
- Inconsistent action plan (Bad performance)

Emotion acts like a two-edge sword, It is about when to trust your gut-feeling/ intuition. Understand your personality, make adjustments from there.

Comment down below how's your current equity curve looks like?

Trade safe as usual.

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