Pelvell
Private, 1st Class
- Messages
- 57
Losing trades are inevitable, in fact it is usually harder to make money with strategies that attempt to secure a very high win rate. This is just the nature of the way the market moves. One you have accepted you will have losing trades and go through losing streaks (known as “draw-downs), you have to decide how much you can psychologically tolerate losing without losing your nerve. To do this, you have to have an honest conversation with yourself. You might think you could cope with something like a 50% draw-down in your trading account, but in reality you could find yourself unable to cope even with 25% when it actually happens. Try to visualize it happening, close your eyes and place yourself there.