Are You Mentally Prepared for a Drawdown? How Do You Deal With Drawdown!? 🤔
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- Опубліковано 29 чер 2024
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Are you mentally prepared for a drawdown? How do you deal with drawdown? How do you handle a drawdown? Are you mentally prepared for a drawdown? In this video Mark discussed trading psychology dealing with drawdowns. Drawdowns in trading: why and what to do? Every single system out there will have a drawdown at some point; you will have some drawdown and often when we experience this we will end up very despondent and frustrated about it. During these times we can get very angry and our confidence gets a battering and we wonder what's going on... A good tactic is to expect this X to happen at some point. You can't have a strategy and look only at the good side of it without expecting a certain amount of drawdown. Back down on the position size and frequency of trading if you can't stomach the drawdown after say, 5 losing days in a row. OK.
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Critical Analysis of our Trading Performance.
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Critical Analysis: Tips to Help You Increase Your Trading Size & Trade Bigger Positions
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Critical Analysis: What is Causing You to Lose Money Trading?
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Critical Analysis: How to Reduce Drawdowns and Your Trading Losses
• Critical Analysis: How...
Critical Analysis: Do You Know Your Profit Winners and Losers?
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Negative Thinking; Revenge Trading 🤦♂️
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WHY DO WE REVENGE TRADE? 😠
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Should You Quit As A Trader / Stop Trading? 😟
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How to Manage Losing Trades: Losing to Win! 😉
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Reducing DrawDowns: Don't Spend all your Time Making Money only to Give it All Back 😲
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Wiped Out.. 😞 Time for a New Start!? 🤞 [LAST TRY!]
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A good saying to remember is "This trade is a step in the journey, it's not THE journey"
when we said " inevitable drawdown" that made me smile for sum reason . bc it makes sence, technical A gives us a edge , so losses will happen and with probability in mind we have no clue what trades will win or lose but if u stay consistent with your approach u should/ will be profitable if u following a trading plan
i'm always mentally comfortable for a drawdown since i understand probabilities but i'm never financially prepared 😭
Great advice......it happens to everyone, I will take time out from trading, maybe a couple of hours or a couple of days, come back fresh, with mind reset....it works for me.
Very good topic Mark. 1 thing I'd add to this esp for new traders, even traders who have been trading for a few years. Is if your account takes a draw down maybe bigger than your trading manual allows. Do this. Withdraw all your capital from your account back into your bank account. Wait 1 week, then deposit capital back into trading account. This one week will clear your head from taking emotional trades, revenge or over trading to gain back the draw down loss.
It's really ironic this video got released on the day I have experienced my first major drawdown. Man it feels awful, but the "good" thing is it stemmed from my greed, and I now know how not to act the next time I'm in such a situation. Thank you for the video.
hello Mark, thanks for your videos, can't you do a live scalping? that would be highly educational to see your thought process while scalping?
Thank you so much for this video..
Well done mark good structure explained
Just wanted to hear this today after a drawdown after 3 good months
Dear sir fantastic stuff as usual hats off to you thanks
What was said at 5:40 was a real mind opener for me. Thank you!
Drawdown is normal :)
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Thank you
The key here is trading multiple accounts with different risk profiles , so I'd this does happen you atleast have the other accounts to keep you acupied.
I don"t trade randomly... but i must have some brain damage, every day something new to learn. As if i forgot overnight. Each day i'm new born for trading, knowing nothing. really horrible. Then i learn a lot of stuff, but next morning it doesn't apply.
Same here
Laurent H 100% ditto
Similar. This is the raw in-the-moment experience of your mind experiencing cognitive dissonance, and it finds a reason -- ANY reason -- to not have to think or do an action (taking a trade) that you emotionally know will risk loss. This is why experienced traders simplify their own system and rules as much as possible, to make the act of taking and accepting that risk as easy as possible, requiring little to no thought or decision. See the condition, hit the button, play the trade out to win or loss, whatever your rules are.
From Mark's trading psychology videos and other sources, I've cut my entire system down to: "See a line, trade price off that line." There are many concepts, calculations, historical trade results, etc. etc. that go into it, but in the actual moment of taking each trade setup, I have a single HTF candle for trend and price target, price action on the M1, and a specific line break I'm trading off of.
Even within 10-15 minutes, I can experience moments where I have been watching the charts, my attention slips for 1-2 minutes b/c I check or think of something else, and I look back to see price has made the M5 candle movement that I was waiting for. All the M1 candle signs were there, so obvious in hindsight, yet I didn't see it 5 minutes before. Same pattern that I've seen before, practiced, traded, won and lost on many different times.
On a larger scale, same thing happens every week, on Sunday evening when Asian session opens. You just have to do some meditation, journaling, visualization exercises, whatever it takes to learn what's going on inside your mind and emotions. Sport psychology, professional poker mindset, behavioral science, etc. dig really deep into this -- retail trading education in forex/stocks almost never goes into it. I've seen some of Van Tharp's books and courses discuss it, and I haven't read Dr. Alexander Elder, but this is entirely his focus. Otherwise, the rest of trading psychology is a pathetic joke -- "be emotionless," "trade like a robot". In a Chat with Traders interview with a trading psych professor and trader, the trader said in 30 years he's never met a trader or a human who was capable of acting emotionlessly under stress. So the only choice is to understand those emotions and design your system to accept and deal with them as they happen to you, yet still enable you to take action on your trades and follow your trading rules.
Good job...for me drawdown consists in a row of 4 loosing trades in a week, so I know before the worst scenario!
I lost 600 euro in 20 mins on revenge trade . Felt like shit
#Good Video
What type of mind set take when you got drawdown? Just wonder becose when i got DD i start get bad ideas.I try think this is just for moment all will be ok if i hold my trading plan and strategy and money menagment.But this is not easy.
Sure I can take the drawdown, but my target keepz movingish!
I won 6 trades in a row and missed out on 3 I was close to doing after all my preparation but hesitated.. they would of been winners too.. so psychologically could of been 9 in a row.. I felt invincible, confident, happy… then today.. I lost 6 out of 7 fucking trades and I feel like total shit
I just lower my risk to half
If you really find it difficult to deal with drawdowns reduce your size by 20% after each losing trade and increase it after the winning ones. That way you'll decrease the impact of losing streaks and you'll come out of the drawdown more quickly when you have a winning streak, which you definitely will if you have a system with a statistical edge.
I've just withdrawn the last £12000 from my brokerage account, which started considerably higher earlier this year... Sometimes you have to admit to yourself that this is a game that cannot be played by everyone.. I have run businesses in the past and thought that 'trading' stocks would give me similar outcomes.... There are far too many variables in the stock marker, far too many people with insider knowledge.... The man on the street has very very little chance of success.... There are no stock market millionaires making videos on you tube.
Good luck in the future everyone..
Fair play for being honest. Could you please tell what you were trading.. as in what kind of stocks (FTSE 100, aim) any commodities, currencies etc.. thanks!
Trading altcoins for Bitcoin this is very important to grasp, the markets can turn quickly in Cryptos, I had to turn down the risk due to Bitcoins volatility.
Its all in the head....
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