If you are losing money in the markets or having a large drawdown in capital it could be a good idea to go back and return to first principles. First principles are the core concepts or accepted foundation of beliefs that a theory, process, system, or methodology is based. Profitable trading comes from using the right principles and process over time, not opinions, predictions, and just being good at it. Here are the core first principles of profitable trading. Creating good risk/reward ratios at entry. Your potential reward should be two or three times greater than your risk of loss. Using stop losses on each trade ... (full story)