What is Longevity in Trading?
Longevity
Forex Trading Glossary
Quick Answer: Longevity means protecting capital so you can trade for years, emphasizing disciplined risk sizing, controlled leverage, and sustainable routines over short-term excitement.
What is Longevity in Trading?
Longevity refers to a trader’s ability to stay in the game for years by prioritizing capital preservation over short-term excitement. Survival is earned through disciplined risk controls, not occasional home-run trades.
Principles that Extend Longevity
- Controlled risk per trade: Follow rules like the 1% rule so a single idea cannot cripple the account.
- Consistent position sizing: Size trades with calculators, not emotions, to keep drawdowns manageable.
- Robust routines: Treat trading like a business with checklists, reviews, and documented processes.
Beware of Overleverage
Most accounts fail because traders stack correlated positions or chase losses. Longevity means accepting small losses quickly before they snowball.
Practices for Long-Term Survival
- Track equity curves and drawdown so you know when to reduce risk.
- Run quarterly strategy reviews to retire tactics that no longer produce a positive expectancy.
- Keep emergency cash outside the brokerage account so life events do not force premature withdrawals.
- Prioritize sleep, fitness, and mindset—the trader’s health is part of the edge.
Related Terms
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