Handling Drawdowns: Surviving the Slump
A Drawdown is a period where your account equity falls from its peak. Every trader faces it. Even legends.
The Spiral of Death
Loss -> Frustration -> Revenge Trade -> Bigger Loss -> Depression.
How to Break the Cycle
- Reduce Size: Drop your quantity to the minimum (1 Lot). Trade just to regain confidence, not money.
- Take a Break: Close the screen for 2 days. The market will be here when you return.
- Review Basics: Go back to Module 1. Are you following rules?
"It's not about how hard you hit. It's about how hard you can get hit and keep moving forward."
*Disclaimer: NSE/BSE frequently revise Lot Sizes and Expiry Days (e.g., SEBI Circulars 2024/2025). Always check the latest circular on nseindia.com before trading.
Standard Disclosure: Investment in securities market are subject to market risks. Read all the related documents carefully before investing. The content provided here is for educational purposes only and does not constitute financial or investment advice. AlgoStraddle Academy is not a SEBI registered investment advisor. Trading options involves high risk and capital can be lost.