Even best of the seasoned traders crack under pressure
1. They start doubting their strategies and even trading as a profession
2. They are tempted to tweak their system or approach
3. They think market has changed forever
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1. They start doubting their strategies and even trading as a profession
2. They are tempted to tweak their system or approach
3. They think market has changed forever
+
4. They do stupid mistakes while knowing fully well how stupid it is
They have many months of ever increasing Drawdown
So if it happens with you
You are not alone or incompetent
They have many months of ever increasing Drawdown
So if it happens with you
You are not alone or incompetent
Forgive yourself, stop blaming your self and bounce back quickly by
Being patient with Drawdown
Its part of a trader's life, no one has ever escaped it
Its too naive to think trading account as fixed deposit where it will grow every month
Stop comparing with others as their
Being patient with Drawdown
Its part of a trader's life, no one has ever escaped it
Its too naive to think trading account as fixed deposit where it will grow every month
Stop comparing with others as their
Strategy might be best for this kind of market, your time will come
Stop comparing as their risk appetite might be much higher.
Stop comparing as their risk appetite might be much higher.
A small story abt losses
In 2011, in my company, our bond desk, all five traders started making losses, every thing that could go wrong, went wrong, they took corrective steps and market became v shaped and then W shaped.
They hit dealer level stop loss, desk level stop loss
In 2011, in my company, our bond desk, all five traders started making losses, every thing that could go wrong, went wrong, they took corrective steps and market became v shaped and then W shaped.
They hit dealer level stop loss, desk level stop loss
And then MD level stop loss was hit
Trading was halted on the desk for months, they used to come to office, drink coffee and go home
But the story is about, no one was fired, as in professional world, it's assumed that once in a while shit-hits-the-fan kind of loss will happen
Trading was halted on the desk for months, they used to come to office, drink coffee and go home
But the story is about, no one was fired, as in professional world, it's assumed that once in a while shit-hits-the-fan kind of loss will happen
And people and organizations are prepared for that.
So embrace losses and time Drawdown as u embrace unbelievable lucky streak.
Markets are like that, trading is like that.
So embrace losses and time Drawdown as u embrace unbelievable lucky streak.
Markets are like that, trading is like that.
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