Keep drawdowns small
When market goes in to volatile times like these ( of which there was clear warning for last few days), always think about drawdowns.Drawdowns are motivation and time killer. And volatile periods can quickly lead to big drawdowns.There are people who thrive in these kind of conditions. But if you are not that kind of a person just watch the game.If you get in to say 5% hole it will take you time to recover. If you just lose 1% or 2% or not even that , you are in better situation.When the conditions improve you are positioned well.I worry a lot about drawdown . Ideally I would like to make money with less than 1 to 2% drawdown. I am already up for the …
via stockbee:
When market goes in to volatile times like these ( of which there was clear warning for last few days), always think about drawdowns.
Drawdowns are motivation and time killer. And volatile periods can quickly lead to big drawdowns.
There are people who thrive in these kind of conditions. But if you are not that kind of a person just watch the game.
If you get in to say 5% hole it will take you time to recover. If you just lose 1% or 2% or not even that , you are in better situation.
When the conditions improve you are positioned well.
I worry a lot about drawdown . Ideally I would like to make money with less than 1 to 2% drawdown. I am already up for the year and in capital protection mode to preserve that gain.
For more info: Keep drawdowns small
Keep drawdowns small
The post Keep drawdowns small appeared first on FX FOREX.
via WordPress http://ift.tt/1fHAAxs
Trading, always-think, available-know, conditions, game, king, market-goes, trading, volatile-times, watch-the-game
Nessun commento:
Posta un commento