Mayne Exposes The Brutal Math That Ruins Most Traders
"You're in three different trades and each one of those trades you're risking 2%. All of a sudden you have 6% risk on."
"A market that is extremely correlated means if Bitcoin nukes and you're long Bitcoin, Solana and Hyper Liquid, there's a chance all three of your trades get taken out. Instead of losing 2% you're losing six percent."
"That is something you have to be careful with. If you're gonna open a bunch of trades, skew to the lower end. Don't really go higher than 2%.Some people risk 5% on a trade. That's getting ballsy."
"Here is your break even rate. If you have $1,000 or $10,000 and you lose 5% on your account while risking 1% per trade, you have to lose five trades in a row to lose 5%. You get a 5% gain and you're back at break even."
"But if you risk 5% per trade and you lose three trades, now you need a 17% gain just to get back to break even. If you lose 10 trades in a row at 5% each, your account is now at 50% of what it was. You have to do a 100% return to get back to break even."
"This is where the math really fucks you. This is also the math for alt coins. If you're in an alt coin that's down 90 to 95% from its entry, you might need over 1,000% gain just to get back to break even. Your trading account is no different."