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. %%
    Actually, not a prediction, but a ''drawDown'' is better than a loss.NOT a prediction, but not likely SPY+ QQQ .......goes to zero/goose egg, but they may drawdown. LEH, GM did go to zero/goose egg. AIG maybe not has gone to zero but Mr Carl Ichan helped bust them up good LOL:D:cool::caution::caution:,:caution::caution::caution:,:caution::caution::caution:
     
    #191     Aug 22, 2017
  2. ironchef

    ironchef

    You have been preaching swing trade using IBD methodology. I read up on W. O'Neil and his book again this past weekend. Began to make some sense to me. Thanks Mr. Turtle.
     
    #192     Aug 24, 2017
    murray t turtle likes this.
  3. newwurldmn

    newwurldmn

    I have never heard the phrase "throw pencils at your screen." What does it mean?
     
    #193     Aug 24, 2017
  4. JackRab

    JackRab

    It means exactly that... throw pencils at your screen. You could also throw a brick, but that would add to the cost/loss, a pencil wouldn't make much damage.

    Also... I've broken a fair few mouses, dented my desk, broken mugs... Key is to grab something that's not too costly.

    My wife argued I needed a stress ball, but that's actually quite heavy and I'm afraid it will go through the window instead of bouncing of it....

    Those are basically the direct rage options. I found that chopping wood helps with the anger of being a stupid idiot who shouldn't have done that particular trade anyway... It's quite relaxing really...
     
    #194     Aug 24, 2017
  5. newwurldmn

    newwurldmn

    Ah. You were being literal. Maybe it's an American thing but "chopping wood" means doing small inconsequential trades.
     
    #195     Aug 25, 2017
    JackRab likes this.