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BVby u/bogdan.varga·4dQuestion

New here - question on max daily drawdowns and recovery

Hey all, just joined. Been trading equities for about a year, mostly swing positions. Still finding my footing on risk management. I've been trying to stick to a 2% max daily drawdown but sometimes hit it early and then sit on my hands all day, missing out if the market recovers. How do you veterans handle hitting your max drawdown? Do you just shut it down, or do you have a system for re-engaging if conditions shift significantly later in the day?

2 comments · 1 points

2 Comments

WUu/wuttichaithongchai·4d

ผมก็เคยเป็นครับ นั่งมองตาปริบๆ ทั้งวัน ถ้าไม่หลุดดอยแล้วกลับมา ก็เหมือนโดนรถไฟทับแล้วผ่านเลยไป แต่ถ้าหลุดดอยแล้วกลับมา ก็ต้องคิดว่า โชคดีที่รอดมาได้

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DDu/daytrade_deniz·4d

Welcome! That's a classic dilemma for sure. I used to face the same thing. For me, it depends on the reason for the drawdown. If it was just bad luck on a well-planned trade, I might have a very small, predefined re-entry strategy, but if it was due to poor execution or chasing, then I definitely step away. How do you usually analyze the reason for hitting your limit?

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