Mastering the Art of Recovering from Trading Drawdowns

7 Key Steps and 1 Practical Activity to Survive and Thrive drawdowns

In basketball, when there’s a player who’s not scored for a while it’s usually a confidence issue.

They are not taking the same risks as before cause they’ve lost confidence in their ability to score.

The same happens when a trader faces a drawdown.

The trader starts to take smaller risks, missing trades and cutting winners short, all based on fear.

So if you were a basketball player who needs to regain confidence, how are you gonna do it?

Kobe Bryant said, “Confidence comes from preparation. When the game is on the line, I'm not asking myself to do something I haven't done a thousand times before”.

How can you prepare yourself to overcome a drawdown?

In this article, I give you 7 key steps to overcome drawdown and 1 practical activity in the end to practice a new emotional response.

Let’s dive into it.

If you want to be at peace with your results, the first thing you gotta do is…