Drawdown
You Knew it Would Happen...
The Unavoidable Drawdown
Your equity curve goes from bottom left to top right without the slightest drawdown, you’re married to Margot Robbie and your kids put their shoes on the first time you ask them to.
And then you woke up… sorry 🙂
Whilst Margot tells the kids to put on their shoes, let’s talk about trading setbacks…
Logically, you know full well you’re going to have a drawdown. You know it’s impossible (except for Instagram traders) to have 100% winning trades. It’s not a secret, it’s going to happen.
So why then do we get sooooo frustrated at drawdown or stagnation? Almost as if it was unexpected.
Today if you are going through a drawdown or stagnation in your equity curve, try and reframe it. Try and think logically about it. It was always going to happen and you just need to deal with it and not get derailed.
No one like it, all traders hope it never happens, but the best expect it and just keep moving forward.
Standards + Habits + Discipline = Goals
Don’t let the drawdown affect the way you trade. Take charge of your feelings towards it and just keep moving forwards.
Stoicism
Check out these great stoic quotes. Replace ‘others’ with the market and they can become a great tool to keep things in perspective when emotions are high…