Kenneth P853 Walker#57

Посмотреть перевод

What are daily and weekly loss limits in forex and why enforce them?

Loss limits are pre-defined caps on how much a trader can lose in a day or week before stopping. Example: a daily cap of 2% equity means trading halts after that loss. Purpose: prevent emotional spirals, revenge trading, and catastrophic damage. Institutions mandate loss limits for all traders, enforced automatically. Retail traders must self-discipline, setting hard stops or broker alerts. Benefits: protects mental capital, preserves long-term survival. Risks: too tight limits may block recovery opportunities. Best practice: balance strictness with flexibility—daily limits 1–2%, weekly 4–6%, monthly 8–10%. Loss limits are not weakness but professionalism, ensuring no single session destroys years of work.