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DO you get scared over drawdowns?

Aaron Countee (FaintToasted)
Apr 06 at 06:20
posts 49
I lost $30,000 yesterday. I did not even flinch. I am sooooo used to it over the years. I keep trading like normal and now I am up $53,000 in all 10 positions combined together and still holding. Losses do not matter if you know your strategy and TRUST your strategy. For experienced traders: What was your biggest loss and how did you cope with it back then over the losses you have today? Are they now nothing to you or is it still tough to deal with?
*I kill pips for fun.*
windpower
Apr 06 at 09:22
posts 9
Accepting losses and trusting your strategy can only come from years of experience of trading and fully understanding the strategy you own but even then losses are still be to noted because the markets change over time and a strategy that worked 5 years ago may not work now
Marcolis
Apr 07 at 04:31
posts 141
It’s natural that drawdowns come as scary because traders should try to handle it nicely and efficiently. Traders should be devoid of the tendency of over trading and revenge trading because if traders nurture these practices, these will turn their life into hell. So don’t let it be and repair your habits.
Aaron Countee (FaintToasted)
Apr 07 at 05:20
posts 49
Marcolis posted:
It’s natural that drawdowns come as scary because traders should try to handle it nicely and efficiently. Traders should be devoid of the tendency of over trading and revenge trading because if traders nurture these practices, these will turn their life into hell. So don’t let it be and repair your habits.

Absolutely. Revenge trading destroys your account.Only trade REAL setups and not trying to win the money back.
*I kill pips for fun.*
Seb King (sebking1986)
Apr 07 at 08:42
posts 510
No as my maximum draw down is predefined by my risk model.
If you can't spot the liquidity then you are the liquidity.
Quercine
May 04 at 05:58
posts 47
It's not worth it to be scared by drawdowns, since you'll earn the money back twice in a while with a good strategy. Don't be scared of them, they're a normal part of growing as a trader.
Ollie33
May 04 at 10:36
posts 10
You are very well trained. I can't always take losses like you do, there is a psychological barrier for me, it's 10% of the account size. I have crossed this line several times and regretted it. It is hard for me to take such losses and continue then, because this means that the trading system has a profound flaw.
A falling leaf does not try to influence the wind, it enjoys flying.
HeavenLeighGill (HeavLeighGill26)
May 04 at 14:25
posts 328
I had a lot more anxiety in the beginning and lost around $2,000 at one point, which was a lot to me at the time. It was definitely a hard experience but I think time and having a well developed strategy make it less scary, especially if you have confidence that you can earn the money back.
saluteband
May 05 at 12:17
posts 31
It's natural to be afraid of drawdown, but what matters is if you can handle it and finally profit
Superfluous
May 13 at 04:40
posts 44
I agree. Losses are a part of trading, and without loss, the win is invaluable. Earlier in my beginner days I used to freak out over the simplest, most smallest loss. Once after a big loss I was so scared I felt like I would leave trading. So I took a break for 5-6 months, honed my skills on a demo account and then a micro account and then came back with a ‘slay’ attitude. Losses do not matter now, and I always trust my strategy.
Andromaris
May 16 at 21:09
posts 29
Hugest loss... hmmm.. sincerely don't remember. I guess it was long before I start earning money in trading consistently. Ofc, I still trade and have both losses and gains, it doesn't' really matter for me how much I lost, the matter for me is how much I gained.

imho, it's tough to handle losses but this feeling fades away as soon as you get used to et losses. of course, on the first stages it might be difficult to perceive the losses, nevertheless, when the time flies, you start understand that it's just a part of trading and basically, it's the hugest part in trading.

I am convinced that no matter how much money you lost, the matter here is to maintain the balance and comply with money management. run the diary and watch for the development.
Miralas
Aug 14 at 17:08
posts 20
On the one hand, you are certainly right.
On the other hand, it is very difficult to endure it from an emotional point of view.
Many people do not cope well with such pressure and therefore refuse to trade.
Saithidor
Aug 14 at 17:25
posts 27
You must be a strong trader. I wish such drawdowns happen less often, it’s all so cool when everything goes well and you worry less, although this is of course impossible, even professionals run into such things, besides, this can always be assessed as an opportunity for additional investment (with a reasonable risk -management).
Aaron Countee (FaintToasted)
Aug 14 at 18:42
posts 49
I am so trained into my own strategy that I no longer use stop losses. Now I am past $1 million.
*I kill pips for fun.*
WhiteWitcher
Aug 17 at 15:21
posts 50
Oh I was furious when I had a drawdown. I swear like never before in my life. 😡😡😝
But this is just a sign that my strategy is not perfect and something needs to change. Accept the fact that losses are possible. And constantly improve your trading strategy.
CraigMcG2020
Aug 17 at 15:35
posts 385
At the beginning it can be daunting but as you progress you should have proper risk management in place where drawdowns and losses are emotionally hurtful
Phorbic
Aug 19 at 05:32
posts 16
I think we don’t need to panic about our account drawdown as long as we are keeping them in limits based on our risk appetite. It also depends on how much loss is acceptable to you. There is nothing to worry about as long as you have a well-defined strategy and risk management plan along with confidence in your skills as a trader. Being scared of losses would only limit your profits and stress you out. We must accept our wins and losses alike with a professional approach.
jiangq
Aug 19 at 14:06
posts 26
Accepting losses and trusting the strategy you own. And learn to use the forex tools's also very important!!!

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Fx_keeth
Sep 02 at 12:39
posts 42
To handle, and reduce inevitable drawdowns, I personally recommend trading small, trading multiple markets and time frames, and, most importantly, trading within a wide risk tolerance margin.
Seb King (sebking1986)
Sep 02 at 13:23
posts 510
Another way to avoid the fear is aside from setting a risk amount you can lose without worry like 1%, don't look on MT4 once the trade is live. Focus on the marked up trade on Trading View and see it as just a win or loss. The value of the DD can only be 1% max, regardless of amount of capital.
If you can't spot the liquidity then you are the liquidity.
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