HOW TO LIVE THROUGH TRADING DRAWDOWNS - See more at: http://www.netpicks.com/trading-drawdown-tips/ Do you know what gets ignored when people write about trading? Living through a trading drawdown. Traders understand that their account will ebb and flow (just like the price on the chart) but when their trading account starts to look like a bear market due to an extended drawdown period, things change. What Is A Trading Drawdown In simple terms, a drawdown is when your trading account starts to retrace after a period of losing trades. In more direct terms, it is a peak to trough decline measured over a certain period of time. This means that your trading drawdown can happen during a single day of trading or over the course of weeks or months. - Visit our website: http://www.netpicks.com/ - Netpicks Inner Circle: http://www.netpicks.com/icenroll - Download the free indicator blueprint: http://www.netpicks.com/blueprint/ - Options Hot List PLUS Training: http://www.netpicks.com/oftbrightbreakthroughs losing trades, loss, profits, drawdown

2. Living through a
trading drawdown

3. Peak
Trough

5. On the flip side is the
MAX drawdown you
can expect from your
trading system

6. You should know the
optimal risk per trade
you should be using

7. 70% of the time
in drawdown!

9. If you do not control your
risk and position size you will
get wiped out

11. What can you do to
live through this
potentially painful
reality of trading?

12. It's crucial you know
your systems past Max
Drawdown

15. Benefits of trading
with an algorithm?
Eliminate those
counterproductive
emotional decisions

18. Make money each and
every day of each and
every month?

23. MAX drawdown 21%
Drawdowns experienced
10% and 9.7%

24. Measure each of your
drawdowns compared
to the MAX drawdown

25. Don't be dejected by a
drawdown, especially
if it is well within the
historical parameters
you've evaluated

26. The only way you will
never encounter a
drawdown is by never
trading

27. Have an expectation of a
new MAX DD somewhere
in the future

28. Understand that the
larger the returns, the
larger the risk

30. Make it all about the
statistics and being
prepared

31. Losses I Quit

32. Part of the problem
with trading with any
trading strategy is that
it's too easy to quit

33. It pays to stick with a
system in its downturn

34. You know your
drawdown numbers
You measure your
drawdowns

35. You've accepted
drawdowns
You expect to have
another large drawdown

37. You need to have a
mechanism to help
you answer this
question

38. Use a moving average
on the equity curve
that tells you to stop
once its violated