P.S: while all of these may not fit into your own trading plan, some of there rules could help individuals decrease drawdowns. -Make limiting your drawdowns in capital your number one priority, not your profits. it's much easier to be profitable when you don't lose a lot of money. -Never lose more than 2% of your total trading capital on any single trade. -Do not over expose your account to too many positions that are all closely correlated to the same trend. -Only take your highest probability entry singles. -Only trade one to three open position at a time, so even big whipsaws in price action do not damage your account too much. -Only risk a small percentage of your trading bankroll, so that you can survive your losing streaks. -Only trade markets you are very familiar with, and have done excessive research on with charts and backtests. -Trade only a method you fully understand, and do not piggy back on another trader. -Do not become biased as a bull or a bear be open minded to what the markets and signals saying about the current trend. Also check out my related Ideas, cheers !
do not become biased
if u are , do not trade that one [ this has saved me a few times !
money management ,
get out of the losers quicker [ still learning this with the above problem
there are other winners out there , you can switch ur trades to these ! [ this reminder helps me cut losers and go for the winners !