How to die a death of 1,000 cuts

Drawdowns, persistent drawdowns are a tough place to be.  They are also the place where traders spent most of their trading life.  Unless you run a Ponzi scheme of course and can keep hitting new highs...Ha!   But drawdowns don't have to kill you.  Here is how to avoid a death of 1,000 cuts. Trade … Continue reading How to die a death of 1,000 cuts

How to deal with (trading) heartbreak.

I've had my share of scars. Some of the most memorable moments in my trading life, where positions that went from profitable, to potentially life changing profitable, to painful losses. The "life-changing" part of some trades triggers the type of irrationality that characterizes many life experiences, not least of which the type the junior high … Continue reading How to deal with (trading) heartbreak.

What I wrote after trading for 2 years…

When I first started trading, I was given $100,000 by a very courageous boss to see how I would trade.  It didn't end well.  In total, after a capital injection along the way, I lost close to $150,000.  I was asked soon after to write a summary of what had happened and I learned from. … Continue reading What I wrote after trading for 2 years…

Choose principles that stand the test of time

The only was that you can build a sustainable trading system is to develop principles that stand the test of time.  A simple test for your principles is to ask this simple question, several days/months after the trade is done: Would I take that trade again?  Regardless of the success of a specific trade, the … Continue reading Choose principles that stand the test of time