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Becoming a Better Trader - How to Handle a Drawdown
Part of trading is losing, that’s just a fact that everyone must accept straight away. So, naturally, experiencing drawdowns is also going to be a fact of the business one must accept. As you can see below, a trader spends a large amount of time in a drawdown, even during extended periods of profitability. There are a couple of different types of drawdowns – ‘normal’ and the menacing ones considered to be ‘problematic’. A normal drawdown is one which results from the ebb and flow of trading and a function of the business. During these periods your losses are well controlled and it doesn’t take much to ... (full story)
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