One step at a time. Every win counts.
Stay calm. Stay patient. Keep climbing.
| First ladder | Second ladder | |
|---|---|---|
| One trade risks | all of it | 1% |
| Each level | ×4 in one win | ×4 in about 124 trades |
| Start | $20 | $20, the same levels |
| After a loss | start again from $20 | keep going, same % |
| Time to the top | looks like days | years |
Red: first ladder. Green: second ladder. Five losses in a row happen to every trader. On the first ladder one loss ends the round; on the second, five in a row still leave 95% of the account.
Healthy The second ladder can survive a bad week and keep learning.
Slow is real. Real is what lasts.
risk 1, win 3, end with 4
at a 40% win rate:
one loss, at any step: the round is gone
rounds lost first, on average: about 36 ($720), 15 ($300), 7 ($140)
more wins than losses needed for EACH level
levels 4 to 11: about 190 to 375 net wins, at 2 trades a day: years
a stop 40 cents away is crossed in seconds. That is why the ladder says "all of it": the size is forced, not chosen.
in 100 trades at a 40% win rate: +0.6 of the risk per trade, on average. The plan works. The size breaks it.
"Trade with: all of it" means one losing trade takes the whole round. To climb from $20 to $1,280 you need 3 wins in a row, with no loss in between. A trade that aims for 3 times its risk usually wins less than half the time.
Pick a win rate to see the chances:
On average that is about 16 rounds of $20 (about $320) lost before one round gets through.
Two trades a day at most is a good rule. But the rule that saves accounts is the size: no single trade should be able to end the round.
Decide where the trade is wrong (the stop) and how much of the balance you accept to lose. The lot comes from those two numbers.
Gold: 1 lot is 100 ounces, so a $1 move is $100 on 1 lot and $1 on 0.01. EURUSD: about $10 a pip on 1 lot.
The same ladder, the safe way. With 2% risk and a win of 3 times the risk, each win adds 6%. Going from $20 to $80 then takes about 24 more wins than losses, not one. Slower, but one bad day cannot end it.
| All of it | 2% a trade | |
|---|---|---|
| One loss | round over | −2% |
| Five losses in a row | round over | about −10% |
| Can keep learning | from $20 again | yes |
FHG FX teaches trading in moving videos, step by step, and has a risk calculator built in. Start free:
Trading involves risk. Nothing here is a promise of profit.