How to die a death of 1,000 cuts

Drawdowns are a tough place to be.  They are also the place where traders spent most of their trading life. However, drawdowns don’t have to kill you.  Here is how to avoid a death of 1,000 cuts: trade smaller positions, with wider stops, less frequently. 

That’s exactly the opposite of what your gut wants to do when you are losing money, but it’s the best way to slow your trading down and give yourself a higher probability of picking up some profits, even small, rebuild some confidence and have a little more equity to take greater risks down the road.

 

 

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