How do you handle the first profitable month?

The first green month is a trap for many: confidence spikes, size grows, rules loosen, and the next month gives it all back. It's one of the most predictable patterns in beginner trading.

How do you handle the first profitable month? — drawdown and recovery diagram
An equity curve during a drawdown and its recovery

What happened after your first good month?

  • what changed in your behaviour
  • how the following month went
  • the rule you'd set before the next one
How do you handle the first profitable month? — risk-reward diagram
A risk-reward ratio of 1 to 2

The drawdown guide is worth reading while the equity curve still looks good.

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