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Question about managing drawdown mentally
Hey everyone, fairly new here, been trying to get my head around proper risk management, especially when things go sideways. I understand the mechanics of sizing down, cutting losses, etc., but the mental aspect of a string of losers is still tough.
I find myself second-guessing setups I've backtested, or getting overly cautious after a couple of hits. How do you seasoned traders deal with the psychological impact of drawdown without letting it compromise your strategy?
2 comments · 8 points
The mental game is the hardest part. You need to trust your system and the data; if your backtest is solid, you shouldn't be second-guessing it after a few losses. Maybe your risk per trade is too high if a short string of losers is causing that much anxiety.