Drawdown: What's your max threshold of pain?

At what drawdown do you draw the line and start to sell everything to protect capital?

 

just hedge, or don't you know how to do that?

 

Today is my biggest drawdown ever in the 2 years I've been trading/investing.

 

About 0.5 to 1%
I swing trade index ETFs, and most of the time i don't have trades opened. For example today i have been on the sidelines.

 

All of ET is so worried and on edge today - its hilarious.

 

Just curious. What benefits do you derive from hedging as opposed to simply exiting and then re-entering at a future point? And could you please quantify that benefit with an example? Do be sure to keep it simple so that I can understand it.

 

Between the margin call and the suicide note...

 

Aren't you an "Elite Trader"?

I can't help it, but when I watch Dateline NBC, you know those " To Catch a Predator" shows, I just picture people such as yourself amongst the perps. You know, bored and unemployed, basically losers that sit around and hammer the internet all day (as represented by you enormous amounts of posts) flaming message boards and the like.


Good Luck!

 

He asked you a perfectly fair question. Why not answer it instead of shit talking?

 

Thank you for your detailed response. It all makes sense to me now.