Plan your trade and trade your plan. Strong confident with your strategy. Give Max DD limit of your strategy. If Max DD trigger, STOP trading and change new one.
The best way to handle them is to avoid them. The markets are filled with uncertainty. If i think a trade i am looking at taking will have two legs to it then i will take profits after first leg before or right when p.b. starts after making the first leg. Then if i am right and after p.b. the trend then resumes i will enter again. Commissions are a small price to pay for locking in a sure profit once made.
to achieve good results in this you can rely on our own experience, statistics, analysis and forecasts.
Is this a psychology /mindset or a technical question?Are you finding this drawdown emotionally difficult? Buy a technical trading course for $5,000 , it willl make you money .no drawdowns
Traders, go by the rule that your worst draw down is the one that has not happened yet. Draw downs are a harsh reality of trading - even to the best traders & CTA managed funds of all times. To deny draw downs could ever happen to you puts you in the 90% + mob of misinformed traders that go extinct. Pro traders expect draw downs and size down during losing periods, some will halt trading for a period of time if the draw down depth hits a defined level. If you have not had a draw down you have not been trading long enough or are ignoring your losses -which a lot of novice traders do - they only recall the winning periods and fail to take a realistic look at trading.
I planned this trade, I don't make things more complex than they are. It doesn't make sense to have rules that or worthless or if you don't follow them. It happens to the best traders also, reducing size I think that are solid answers, but just saying I didn't plan this trade is stupid. Tell me what other things I can plan that are NOT theoretical and also have a real value.
To me that's a typical beginners error. NEVER trade small timeframes, even on intraday you should built your basic strategy on hourly charts. The potential in 1 min charts is too small compared to the stop you should use.
Buy a technical trading course for $5,000 , it willl make you money .no drawdowns ______________________________________________________________________ Buy this course and you will have a $5,000 draw down right out of the gate. Anyone that claims you will never have a draw down lacks ethics and should be avoided like the plague.
ha,ha, you bought a stock and hoped it would go up. It went down and now you are on the internet calling it a drawdown. Now you are talking about size. Size is in the plan! Starting size, any additions any reductions, it's all in the plan. You should have known that before you ever put it on with live real money. What you will do if it goes straight up, what you will do if it chops up, what you will do if it goes to zero. All that and more is in a simple bare bones plan. Call it a plan, call it a strategy, call it a system, it's all seen from high above looking down at all the known and probable possibilities and there are the unknown you can do nothing about that you at least consider before ever getting involved. Likely drawdown was already known. What you will do in everything goes to shit scenario. It's all planned out. Everything except failure. There will be no failure because you are going to execute according to the plan.