Limit your losses to 2% on any one trade

The art of trading is about winning, but equally important is to limiting risk when wrong on a trade. The table shows the drawdown of a trading account, and the return one would need to achieve if the account suffers those types of drawdowns. The striking reality is that if one is careless (or carefree) and looking to make big money TODAY and overleverage, the task to get back to break even would be daunting, to say the least. So, limit the risk to 2% of your account on any one trade.