We know we have to manage our trading system. Our entries and our exits and our mind. But how much pain can you manage as a trader? Traders just like entrepreneurs have to manage the pain of losses, set backs, and battle to remain confident in themselves and their ideas even when their is little evidence that they should.
The answers to these questions can predict whether you will even survive as a trader long term.
- How many losing trades can you handle in a row?
- How big of a drawdown in capital can you handle and continue to trade?
- Do you have your spouses unconditional support?
- Are you trading for capital appreciation or to pay monthly bills?
- How lock can you go unprofitable and survive financially?
- How big of a position size can you trade without emotions over riding your trading plan?
- What are your expectations for losing streaks and drawdowns with your trading system?
- Do you enjoy trading?
- Is trading much harder than you expected it to be?
- What would make you quit trading?
Everyone has their own answers but your answers if done honestly can help you make adjustments to your current trading so you can survive in the long term.