I Think He Is Wrong

So there’s this trader who had a nice equity curve, bottom left to top right.

I can’t post it but you can picture it…

It was relatively smooth, limited drawdown, actually very nice.

But in March he lost money…

Not a lot, but he lost.

And that made the equity curve flatline, it’s almost like its heart has stopped beating.

The thing is, this trader said his confidence was whacked. He felt as if he had to go on sim and take a step back.

Ok so let me add something here FWIW.

And as I always say, I don’t have all the answers, I don’t know if I’m right, I can only share my perspective from 20+ years as a trader and let you decide.

I think going on sim here is the wrong thing to do.

Why?

The stagnation isn’t due to a discipline issue.

There’s no big drawdown.

Perhaps his strategy was just not as effective this month.

It happens…

If it was me, I’d spend time analysing the trades and see if I could make any tweaks or adjustments.

Is it something that needs attention or do I just need to be patient?

Listen, I think SIM/demo can be useful at times.

But if you hide behind sim every time something doesn’t go your way, you probably won’t be trading a live account when things do.

Now, of course, we are all different, and you need to do what’s right for you and your trading.

But playing too defensively can deliver you the exact thing you are trying to avoid…

Sometimes going on the attack or at least holding the line is the best form of defence.