I am coming back to an old theme – the notion of character in trading. Recently, I have heard several conservations about how to deal with a series of losses or an extended period of drawdown. The nature of these conversations all had something in common, whether there was a magic technique to help traders get through these periods of difficultly. I was going to produce a fairly long monologue on this topic but I kept looping back to the same point. The terrible answer I came up with is there isn’t a simple tool to get you through – what gets you through is the person you are.
All traders have periods that are complete rubbish where everything you do seems to turn to shit. This is the nature of trading – successful traders simply push through. This is character, you either have it or you dont.