Hey All,
I must say that I have spoken before looking. In other words, I did not complete my research before posting on my site. After reading Chris-mons, post, I went back into the Zulutrade site and noticed that the trades that LowestDD took all came back into Winners..I exited those trades in losses when I could not emotionally handle the DD. If I had stayed into the trades and emotionally handled the DD, the trades that I took with LowestDD would have been winners..So, What is the solution to the emotions of DD. In reference to lowestDD, my account could have weathered the DD. As always, thanks for listening and all help would be appreciated.
JimmyB
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Jimmy-
ReplyDeleteThanks the update.
I've also been guilty of dumping out of providers positions that came back later to yield a profit. I've also cut losses in positions that have went on to show even more losses. So i've been on both sides of this slippery slope.
One thing about currency trading - that distinguishes it from stocks and commodities - is that if you exit a position at a loss, it will probably eventually come back to show a profit.
Its sort of like betting whether it will be colder or warmer in the future. The answer is both its just a question of how long it will take and whether you can take the heat (or cold) in the meantime.
In terms of Zulutrade, I think we have to pick a provider, pick a stop, and go with it.
The only exception is if you've been studying the underlying and decided that we have switched between a ranging market (80% of the time) to a trending market (20% of the time).
But bailing out on the basis of drawdowns within the confines of your predetermined stop is bad and should be avoided. I'm not preaching, because i'm guilty too. But with all the things going against us in currencies, its best to just to log out and check back later.
I suspect that the winners in Forex either have much better algorithms than us - or they can wait out nasty drawdowns.
Thanks for blogging and see you in the trading room,
Chris-Mon (Tcxmon)
Hi there.
ReplyDeleteI do understand the emotional stress in handling DD's... I just can not stand looking to my account and watch how it draws down -50 or lesser... Too shocking to me.
Well, I still keep my word in take a look to Cheetah and specially Phil's Signals. This last one made me win today aprox. 40 pips and 0 stress :)
So long and wealthy trades.
Galo