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Hi guys,
For the second time I'm facing a long drawdown period (4 weeks) that happens right after having good profits week after week for a few months.
Anybody has faced something similar?
Trying to understand if that is something normal, that is, long drawdowns are just part of the job and I should get used to them.
OR perhaps, after the good months I'm becoming more aggressive and taking trades that I should not, and therefore, my results are suffering from the euphoria caused by the good results.
Any insights would be very appreciated.
Best!
Im down 12k over the month. 2k today! wasn't looking for it to turn around on me and got chopped up. Im considering quitting tbh.
In all fairness its my fault not the programs! It appears I'm too stubborn for my own good. I need to finish watching all the videos before trading size. it doesn't feel good having a trade go against you as you watch the p@l depreciate.
Trying to understand if that is something normal, that is, long drawdowns are just part of the job and I should get used to them.
No way you need to get used to them, you need to get rid of those drawdowns if you want to be a happy person in the long run. The drawdown is just telling you that you need to keep working to increase your skill and tame your emotions. Yet...
OR perhaps, after the good months I'm becoming more aggressive and taking trades that I should not, and therefore, my results are suffering from the euphoria caused by the good results.
... if you trade something else than the emini you simply can't know what is wrong! Maybe you are more aggressive now, maybe you just were lucky before, or... something else. However, if you trade the emini, it is very easy to compare your trades with the ones highlighted by Al to know if you are taking good trades that simply don't work, or you are just taking bad trades.
Yep. I know that feeling. If you can be profitable for a couple of months, then during those times you are doing something right.
However a 4 week loosing streak just means you are not quite there yet. "Normal" is a relative term that is different for every trader, but if trading is your livelihood, then, it's not normal.
This is what worked for me:
- Trade Micro's until you can afford not to. Losing is part of your tuition so why volunteer to pay 10 times your tuition trading the regular e-mini.
- Continue to learn and relearn the course.
- Become an expert at trade management!!! (Don't wait for your stop to get hit if the market is clearly telling you your wrong. Take profits properly.)
- The biggest thing for me was over trading and taking too many bad trades. Since I also had plenty of good trades, once I accepted this, the solution was simple. Stop taking bad trades! If you can not recognize a bad trade, then you are still learning. I allowed myself only 3 trades a day and they had to be stop entry swings. Before I push the button, even now, I ask myself "Is this the best trade of the day?" Guess what, I only take good trades now and I don't get upset when a GOOD trade fails. I take 1-5 trades a day and I am consistently profitable and taking a regular pay check from my account.
You sound like you are well on your way. Don't give up, Get discipline!!!
@egottne-rr-com Hey Eric, really appreciate your insights.
I think you nailed it. Specially the last point. This weekend I spent some time studying my trades during the past 2 months and I noticed that, as soon as my results started to get better, I started to over trade, and take bad trades.
I think my biggest lesson at this point will be control my FOMO. And also remind myself that the market is giving good trades all the time!
Got to build up the patience.
Thanks again for taking the time and sharing what worked for you.
Also glad that you're consistently profitable. It's always good to know people who made it 🙂
Best!
