Wham, Bam Trading Plan #17 - The Psychology of Dealing with Drawdowns
In this episode, Raj talks about a subject very close to his heart - and that his how to psychologically maintain your trading composure. Every trader has had this experience. You're well into a trade, everything is going well, the market's moving smoothly, your profits are climbing and then all of sudden we get a wave down and panic sets in. When you start to lose profit then even seasoned traders can lose composure and let their emotions take charge. So how do you keep your cool? What are the tricks to remain objective in your trades? In the face of a reversal, when do you take your profits?