I had an amazing revelation. Right out the gate with my initial live account, I was trading beautifully. Risk was managed, rewards were captured and profits were becoming realized. I was up 20% at one point. After I the first 5% my euphoria was second only to maybe to the adrenaline dump when robbing a bank. It was the first time I felt successful in a quest I wanted to embark upon and I dreamed of achieving success. I was in the space that said “I am invincible and nothing can stop me”. Well, except for my own personal lack of control when things are going my way. I became complacent in risk management, ignorant of the power leverage and determined to get back the profits I lost. It ended in 25% of my account balance in the garbage disposal. Ultimately, I was a victim of being successful at trading. The euphoria threw the rule book I developed over the last three years out the window because I was not prepared to feel that heavy powerful side effect of determination and perseverance. Success and the final progression to achieving the outlined goal was a perfect setup for destruction. I have implemented rules that have already begun the rebuilding process, I am confident I can resolve the problem created by my celebration of my achievements in the recent days. I am curious if there are other traders experiencing similar drawdowns caused by similar circumstances.
I’ve had a feeling like this with many of the clever and detailed strategies I have trialled. About half of them lost money immediately or were just impractical for me to follow. But so many times the strategy worked at first and I thought I had the holy grail in my hands.
But usually running the strategy longer or increasing position size or taking more trades just exposed that it wasn’t the holy grail after all. Well, what do you know…
Onwards and upwards.
I was talking more in the realm of personal pursuit of goals and achievements rooted in one’s own passion and not in what is necessary to survive. That euphoria of reaping rewards of determination was a new flavor for my emotional body process. I spent years exerting every leftover possible watt of energy available within myself to produce a trading plan that is centered around my perspectives, personality, mentality, strengths and appetite for risk. It’s a plan that is unique to me and it works for me, granted I control my excitement in experiencing it’s potential. I safeguarded against every weakness I could objectify within myself after careful self assessment. I never tried for something that was not pushed into my reality. I never came up with an original endeavor to pursue in my own life, until I began studying trading and developing this plan three years ago. It was not the plan that failed. It was my virginity to the ecstacy of accomplishment in a field of true passion. It took over. I was not able to get a grasp on reality. I felt like a child who was feeling an emotional reaction for first time. Quite frightening, to say the least and nearly hung up the trading hat. However, I have started to reverse course and will continually rebuild the capital lost in my celebration. Keep to the plan, always keep to the plan.
these process will keep going on and on for years ,sometimes decade ,i wish you the best of luck
Oof. Painful. But at least not 100% - on the bright side.
Good luck! Definitely interesting to read about the perils of winning from your perspective!