Drawdown

#1
Hi,

I'm trading Nifty with 2 lots with 2L Capital and having drawdown of 7-10%(moving in this range,loss-profit,loss-profit).

Is 10% drawdown ok on 2 lots?

And,because of this drawdown,I'm loosing confidence and thinking,may be Trading aint my "Cup of Tea"..
I'm not able to recover my 7-10% drawdown since few months and I fear to take a good trade..I missed many Yummy Trades and when I entered,the meat was almost overed. :(
 
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manishchan

Well-Known Member
#2
10% on 2 Lakh sounds ok but that is like 200 points with 2 lots. Whtz the draw down period ?

If it is taxing on your mind.. then May be you should stop trading for sometime. Take a break.. do some analysis of the trades you took. What went right.. what went wrong. Find out the key points that you need to work on and come back fresh.
 
#4
Hi,

I'm trading Nifty with 2 lots with 2L Capital and having drawdown of 7-10%(moving in this range,loss-profit,loss-profit).

Is 10% drawdown ok on 2 lots?

And,because of this drawdown,I'm loosing confidence and thinking,may be Trading aint my "Cup of Tea"..
I'm not able to recover my 7-10% drawdown since few months and I fear to take a good trade..I missed many Yummy Trades and when I entered,the meat was almost overed. :(
It's ok to me....Draw down is a frightening word in Day Trading.......if your Draw down is 10%.....then get back your break even....11.11%......Maximum draw down is the lowest point your account reaches between equity peaks in a given period....Example.....You started with 2 lacs......and the the lowest amount you had....in your account....over six month period....was 1 lacs..........then you had a 50% draw down....this is very important point......because even though you lost 50%.....from your capital......you need 100%.....to get back break even.....:thumb:
 
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#9
I should trade with 1 lot or 2 lots only now?
You looks small trader.....so go with 1 lots....


ps: your name I like Mungerilal ki hassen sapne..........:D
 

manishchan

Well-Known Member
#10
No Sir plz.. :)

10% Draw down over 3 month is healthy actually. But only concern is that the draw down is continuous. Like I said before... you need to figure out what is going wrong in your trades. Pull up all your trades done over the last 3 months and find out where did you go wrong. Did you follow your system/methods ? If you have followed them religiously then you need to work on the method. But if the system gave profit but you didn't follow the system, then you need to work on your psychology/Emotions and RR

All the Best Buddy !!