Every trader who ever quit trading did so during a drawdown.
But at the same time, every profitable trader experienced the same drawdowns and didn’t quit.
In fact, profitable traders will often cite drawdowns as fundamental inflection points in their trading career.
They learned from them.
Why do some traders quit while others treat drawdowns as learning opportunities?
I believe it comes down to your attitude about the markets.
If you believe your drawdown isn’t your fault…
If you believe the bad guys came after your stop…
If you believe the Chinese manipulators caused your drawdown…
If you believe your guru in the trading room didn’t give you the signal fast enough…
Then you will eventually quit trading during a future drawdown.
But if you realize that you alone are responsible for your current drawdown, as painful as that might be, then you have the right attitude.
Because if you’re responsible for the drawdown, then you can make the next one a lot shallower.
What would your results look like if your drawdowns were half as deep and half as frequent?
When you take responsibility for your own trading, you can make that happen.
-Dave
