The recent trades have also seen significant drawdowns.

Jan 29, 202517

AI Translation

This post is translated from Chinese into English through AI.View Original

AI-generated summary

The author reflects on their recent trading experience, where they attempted to trade without a strategy, leading to significant losses—from a peak of 40 units to 11.1 units. They acknowledge their lack of skill and the emotional turmoil caused by the volatility. Initially, their strategy yielded small, steady profits, but the shift to trading without a plan resulted in a severe drawdown. The author recognizes that the major loss stemmed from a single market pullback, which they could have weathered but chose to exit prematurely. They express regret over their impulsive decisions to recover losses, understanding that this approach was fundamentally flawed and cost them dearly.

Recently, I tried to make a single trade without a strategy, and then there was a huge drawdown from a peak of 40u to now 11.1u. I accept that my skills are lacking, and I deserve it. I also know why this happened; my inner self was lacking. Before I started trading, when I was making strategies, the profits were relatively small and stable, and my state was at its best. However, as soon as I started trading, the profits compared to when I was making strategies were much larger. When a huge drawdown occurred and there were abnormal fluctuations, my mindset collapsed, leading to a series of butterfly effects, and ultimately despair. I reflected and started over, going through this cycle again. The reason for this huge drawdown was just a pullback; at that time, if I had just held on, the outcome would have been different. But I chose not to hold during the abnormal fluctuations and directly closed the position. Even if it happened again, I would still do the same; that is the right choice. However, later, I became anxious and wanted to recover the losses quickly, which was a big mistake. I paid the price for my errors.

https://t.me/c/1806401200/937

Published

November 25, 2024
Category

Trading Insights
From

Bai Che

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