Trading the Trend (Collection)

Drawdown

Everyone is a loserin the markets. No one wins.

Everyone is destined to bescared hiding under their bed.

Then you die.

Life sucks, eh?

In the early 1990s, Commodities Corporation (a famed trading incubator that taught and bankrolled new traders) invited a group of Japanese traders to its company for in-house training. One up-and-coming trader at Commodities Corporation took his new friends to lunch. He told his guests how important risk management was, and to risk only 1 percent per trade. He was clear that experiencing small losses were part of his process to ultimately finding big winners. The Japanese traders, with puzzled looks on their faces, asked, “You have losses?”¹

Some “win” by searching nonstop for the “answer,” even when ...