Thread: Drawdowns - How do you deal with them? (for day traders)

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  1. #1
    alissa17Cam
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    Default Drawdowns - How do you deal with them? (for day traders)

    HI guys,
    Even though everybody has them, most don't want to talk about them or even admit it. Just for that reason I thought this might be a good topic for discussion.

    So you are in a draw down, the things that were working are all the sudden not working. Has the market changed? Do you stick to your plan? If you stick to you plan how much draw down can you accept before you have to stop? Reduce size? What do you do?

    Currently I am trying to work through these issues myself with a fairly significant draw down. I have been here before and will probably be here again. My first few encounters inevitably led me to all of the psychological pit falls of a draw down and ultimately blown up accounts. Today I accept that they are a part of trading and the only way I am going to get out of this is to grind my way out with a very specific plan.
  2. #2

    Default

    I'll try to chime in with my own 2c a little later this weekend, but I think you nailed it pretty good there yourself Steve with your plan. Sorry to hear of the draw down, but I think you're absolutely spot on with what you said in your post. This topic really doesn't get discussed much at all since as you said, most people just don't want to ever admit to experiencing draw downs in trading and prefer to just talk about their winners all the time. We've all suffered some kind of draw downs in trading ... anyone who says they never did is just flat out lying IMHO.

    Anyway, I thought it was a great thread idea personally! Thx for starting it up in here. Hoping it catches some other peoples eyes as well and we get some good input from the other regulars here.

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