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How To Live Through Trading Drawdowns…

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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.

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losing trades, loss, profits, drawdown

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