Best Way To Deal With A Large Drawdown

[loyek590]

if it is a viable system, it will already have predicted that something you didn't expect will occur

 

[smallStops]

well, some of us think we had a max loss program in place, but there was something we didn't quite see, even though it was sitting right there in front of us.

then it's a matter of trusting how you saw the world when you were flat and relatively sane, or how you see it now in the depths of drawdown?

And how do you actually see it now in the depths of drawdown?

 

[loyek590]

And how do you actually see it now in the depths of drawdown?

everything is bad. Even your own mother never loved you, you have no friends, and even strangers are starting to hate you

 

[smallStops]

everything is bad. Even your own mother never loved you, you have no friends, and even strangers are starting to hate you

Sorry to break the news to you : the harassment is now finished, as all is now in the hands
of the Police. Yes they do extraditions. .
I hope you will be courageous to give your name and address when
time comes instead of wasting Police time to bring you to a Court of
Law to explain your role in the actual deaths they are investigating
- collateral damages some will call it. Murder for some lawyers.
But please start telling all to your lawyer so that they get ready.

Hope you won't run away from French Justice System, as when
people taste our prisons here ( including Ministers and bankers),
they prefer to run away or stick to the Law

 

[loyek590]

now? how do I see it after all these unexpected drawdowns? "Oh Shit!" "not this again?" "Oh well, we've been through it before, we'll make it through again" "If we don't live too long"

 

[Redneck]

well, some of us think we had a max loss program in place, but there was something we didn't quite see, even though it was sitting right there in front of us.

then it's a matter of trusting how you saw the world when you were flat and relatively sane, or how you see it now in the depths of drawdown?

This another pitfall of trading

And I don't care it it referring to losses..., losers..., winnings..., winners..., consistency..., repetition..., or whatever


The only way to know one can survive a situation - is be in that situation..., and survive it

And typically (way..., way more times than not) - with respect to trading - we are placed in those situations precisely when we are least prepared to survive it


Until enough experience built up - nearly every situation is an absolute do (survive / make it through) or die (break our account/ we're done) proposition



Gotta love this game

Also gotta respect the risk involved


RN

 

[Redneck]

if it is a viable system, it will already have predicted that something you didn't expect will occur

Or at least anticipated

Yet until we've experienced it - how the heck do we know to anticipate it


Only way I know of is to learn from other's (including mine) mistakes

But people are funny that way - seems we need to experience it - before we're willing to believe it actually exists / is out there to bite us in the ass


Landmines buried all around me - yet I continue dancing a moonlight serenade

Go figure

RN

 

[smallStops]

Or at least anticipated

Yet until we've experienced it - how the heck do we know to anticipate it


Only way I know of is to learn from other's (including mine) mistakes

But people are funny that way - seems we need to experience it - before we're willing to believe it actually exists / is out there to bite us in the ass


Landmines buried all around me - yet I continue dancing a moonlight serenade

Go figure

RN

Mistakes are made. People are human.
Some learn early.
Others only learn when faced with serious consequences.
That is what makes life: every person is different, every person learns in different ways.

 

[loyek590]

This another pitfall of trading

And I don't care it it referring to losses..., losers..., winnings..., winners..., consistency..., repetition..., or whatever


The only way to know one can survive a situation - is be in that situation..., and survive it

And typically (way..., way more times than not) - with respect to trading - we are placed in those situations precisely when we are least prepared to survive it


Until enough experience built up - nearly every situation is an absolute do (survive / make it through) or die (break our account/ we're done) proposition



Gotta love this game

Also gotta respect the risk involved


RN

the risk becomes less and less over time if just like my daddy told me, "Put it away for a rainy day." So when I started out, my trading account (all $350 of it) was 100% of my liquid net worth. And it stayed that way until I blew up.

Second time around a percentage of trading profits went into something boring like the Vanguard S&P 500 fund each quarter (or whenever I had to wait for them) so trading today is much less risky than it was when I was young.

 

[loyek590]

Sounds like the Sunday Afternoon Losers Club. We all know how it feels to be in a drawdown and are probably actually in one.

Someday somebody needs to start a thread, "How do you deal with unexpected very high profits?"