Short YouTube video by Alan Solarsh that explains the forex concept of "drawdown" using a retail-store (supermarket) analogy: money used to buy inventory represents drawdown until inventory is sold for profit. The chunk focuses on mapping a trader's capital exposure to purchased stock in a shop to make drawdown intuitive for retail traders.
Drawdown is part of forex. I explain it like this.
When you buy, let's say you an entrepreneur and you decide to open up a retail store and you like a supermarket and you have to go and buy stock for that supermarket so you buy chips and cold drink and candy and chocolates and all sorts of various different items. Okay? She bought these products. Now you open your doors and the people come into your shop and they come and purchase your items for you from, from you. Okay? The items that you bought in your shop is called drawdown.
Okay You've used your money to buy that stock. Now you have to sell that stock for a profit. So let's say you spent a thousand dollars on, okay on buying your chips and cold drinks and sweets and you know all the things in your shop, okay you, you don't have that money anymore. Now you've got stock. That's drawdown. So I like to relate my forex account to that.
Double bottom forming - Gold ready for $4000 #trading #technicalanalysis #xauusd
