Best Way To Deal With A Large Drawdown

Discussion in 'Risk Management' started by Fundlord, May 9, 2015.

Best Way To Deal With Drawdowns

  1. Step back from trading, re-evaluate and change strategy

    30.6%
  2. Continue strategy but reduce size

    51.0%
  3. Take a break from trading all together for a while

    12.2%
  4. Try win it all back on one or two well timed trades

    6.1%
  1. Buy1Sell2

    Buy1Sell2

    Uncalled for.
     
    #181     Aug 6, 2017
    Overnight and murray t turtle like this.
  2. tomas262

    tomas262

    When I get into a larger drawdown I always review for possible over-trading #1 cause of my drawdowns. Months with the worst performance cost me the most in terms of commissions paid that month. Yeah, trade less make more
     
    #182     Aug 6, 2017
    murray t turtle likes this.
  3. Says who?
     
    #183     Aug 6, 2017
  4. %%
    Swing trade+ swing invest;
    mainly use CAN SLIM-IBD stuff, i think its about 577 pages. And some math; rather risk $3 on $58, than $3 $20 .He like$ to'' consider selling if its outside channel'' but that is in his new book Most of my ETFs, or sometimes stocks======= tend to spend/trend out side the channels, so much time, i seldom do that.[7 or 8% is on a cash market.......] Wisdom is profitable to direct:caution::cool:
     
    #184     Aug 11, 2017
  5. ironchef

    ironchef

    Thank you for your coaching.
     
    #185     Aug 11, 2017
    murray t turtle likes this.
  6. %%
    Cool:cool: ,Ironchief
    I really wanted to load the boat with tek stocks after all, NG, QQQ...... day traders did real well today. I AM NOT worried about a Korean war sell off, anything could happen on a 1, or 3 minute chart-LOL 50 day moving average is $till up. Main reason i did not load the boat with tek stocks; if SEPT sells off 80% of the time, i most likely could not get a big trend , in time for probable SEPT Sell off.!!!! :caution::caution: Great quote from T omas262 on less trading is more. Wisdom is profitable to direct...............................................................................................
     
    #186     Aug 11, 2017
  7. Overnight

    Overnight

    Yes, it was uncalled for. Not very funny.
     
    #187     Aug 11, 2017
  8. vanzandt

    vanzandt

    I thought it was. :D
    But he failed to allocate for the knot.
     
    #188     Aug 11, 2017
  9. Overnight

    Overnight

    Without getting too deep into the underlying issue of it being uncalled for, it goes uncontested. Let's leave it at that. It ain't funny. Vanz, we watch each others' backs. But this one? I take issue with it. Let that sleeping dog lay, as it were.
     
    #189     Aug 11, 2017
    vanzandt likes this.
  10. JackRab

    JackRab

    Cut the trade... than throw pencils at your screen... and start chopping some wood...

    Why isn't that option available in the vote?
     
    #190     Aug 22, 2017
    ironchef and murray t turtle like this.