We’ve done the backtests, statistically proven the edge, and through our greed eyes have seen the 20% CAGR potential in lots of systematic trading or investing strategies. Our fear side only glances at the drawdown statistics and thinks, “yep, I can live with that”. But in real life trading, with real money at risk, our true nature is revealed. I don’t know how many times I’ve changed strategies after a drawdown, because of this human failing, but I’m working on finding a balance between my conflicting emotions. One way is to simply trade smaller. Another is to target lower drawdowns and accept lower returns because we are not all built to be legends in markets. Less can be enough. Finding our true selves and trading / investing that way, should be our goal. Thanks Michael for the nuggets of wisdom you impart.
Trading smaller can serve to medicate our feelings. It can also serve as a proactive healthy response to our feelings and overall goal(s).
Finding our True Self and expressing it, to me, is the ultimate goal. Working on our feelings by noticing them, celebrating them and understanding how they're all trying to communicate something can help us set up a drama-free plan and commit to that plan.
We’ve done the backtests, statistically proven the edge, and through our greed eyes have seen the 20% CAGR potential in lots of systematic trading or investing strategies. Our fear side only glances at the drawdown statistics and thinks, “yep, I can live with that”. But in real life trading, with real money at risk, our true nature is revealed. I don’t know how many times I’ve changed strategies after a drawdown, because of this human failing, but I’m working on finding a balance between my conflicting emotions. One way is to simply trade smaller. Another is to target lower drawdowns and accept lower returns because we are not all built to be legends in markets. Less can be enough. Finding our true selves and trading / investing that way, should be our goal. Thanks Michael for the nuggets of wisdom you impart.
Trading smaller can serve to medicate our feelings. It can also serve as a proactive healthy response to our feelings and overall goal(s).
Finding our True Self and expressing it, to me, is the ultimate goal. Working on our feelings by noticing them, celebrating them and understanding how they're all trying to communicate something can help us set up a drama-free plan and commit to that plan.