A good trading system delivers greater profits than losses over a period of time, but even the most carefully designed system doesn’t guarantee success in every trade. No system can assure you of never having a losing trade or even a series of losing trades.
This is why risk control must be an essential part of every trading system.
The inability to manage losses is one of the worst pitfalls in trading.
Beginners freeze like deer in the headlights when a deepening loss starts wiping out profits of many good trades.
It’s a general human tendency to take profits quickly but wait for losing trades to come back to even. By the time the despairing amateur gives up
hope and closes his trade with a terrible loss, his account is badly and sometimes irreparably damaged.
To be a successful trader, you need to learn risk management rules and firmly implement them.