This Trader Hates Me (How To Handle Trading Drawdowns)

no hate frog image

I think this trader hates me.

Although most of you know I am an emotionless cyborg, I’ll admit this email got my blood boiling just a bit (I’ll have to check my programming for viruses).

you suck email

Ouch.

That hurt. There is so much I could say to this guy about his negative attitude, an attitude that rarely leads to “winning”.

Nevertheless I responded kindly.

Here is what I wrote back after editing out all of the four-letter words before hitting send:

I understand your frustration my friend. I feel it too. But remember as a trader you need to focus on the long game. At the end of the day short term results are meaningless.

After years of trading I know drawdowns are an unavoidable part of the game. You see, we are playing probabilities and even if you have an amazing 75% win rate, you will lose 25% of the time. Unfortunately, those losses don’t come in a nice and tidy 3:1 win rate. Sometimes you will have 5 or even 10 losses in a row! As a swing trader that could lead to a two or three month drawdown.

Don’t get too emotional about it. Trust the process and results will follow.

Know that if you study your trades, follow a strong process and make minor adjustments according to the market and your own trading leaks, that drawdown will eventually turn upside down. My own biggest winning streaks have almost always followed drawdowns.

Trading is easy during when things are going good. What separates winning and losing trades is how they handle draw downs. That’s when the “mental game” comes into play and traders lose discipline. Head these words and you WILL become a winning trader.

I never received a response back, but sincerely hope this response helped (even if he still hates me).

Remember, during your next drawdown put the “drawdown plan” into practice.

  • Stay calm
  • Trust the process (as long as you have a good process)
  • Don’t get caught up in short term results (think long game)
  • Analyze your trades and make small adjustments as needed

Stick with it though the drawdown and there’s a good chance the drawdown will “bottom out” and lead to a big win streak.

7 thoughts on “This Trader Hates Me (How To Handle Trading Drawdowns)

Add yours

  1. I think that trader is more frustrated about the good trades he missed than the drawdown period he has been experiencing. My fear of missing out helps me to follow the process during drawdowns.

    Liked by 2 people

  2. Some people have no respect, which I’m sure discipline is one of his problems! Any who thanks Paul for your time and effort to teach others, I’m sure the trader was probably just frustrated and was venting! If not oh well he’s probably not even man enough to apologize!!!

    Liked by 1 person

  3. This arrived in my inbox just at the right time! My May trades have not gone my way. I spent four hours reviewing yesterday and have many areas to improve on and a revised checklist to trade with today to make sure I am not making the same mistakes from now on. I know I’ll still lose often enough but as you said Paul, it is the PROCESS that is giving me the confidence to keep at it. I love your work! I have learnt so much from you, so thank you , thank you!!! And as an aside, I use your principals to trade the ASX200 down here in Australia.

    Liked by 2 people

  4. Hi Paul, good response but 99 % thinks you’re awesome so don’t let the 1% get to you. Consider him or her like a losing trade take your loss and go on. Greetz Tim (NL)

    Liked by 1 person

  5. Paul, I have been following you and Kunal now for about 3 months or so. I am very glad that I found you guys. Even though I am not a paying customer, I recommend you both to whomever will listen. Your free videos and webinars have taught me so much about reading the market, following the money, and risk management. I can’t thank you enough! I have recently started trading Options, mostly put credit spreads and deep ITM calls. I’m currently up about 28% on the year starting with a $10,000 account. My short term goals are to get above the PDT rule of $25,000. I wouldn’t worry too much about that disgruntled trader. He is obviously not disciplined enough to even find his own trades. Profits must be earned. Sheep always end up getting slaughtered, wolves live free.

    Like

  6. Thank you, Paul. This is the real world. You handled the response with class, integrity and professionalism. Well done, my friend. Thank you for your service.

    Like

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