How to Negotiate Your Stops When You're in Draw Down

Now is not the time to start feeling anger and acting out, says michael martin. Trade smaller when you're in draw down - offset a good chunk of your position right away. If you know that you're coming into the trading day with an emotion, then that emotion's going to get amplified. Give yourself a lot of room by placing super tight stops when you're already down. You can't go to the market to try to allay whatever negative feelings that you want to feel. I used to run around the reservoir at central park. And it's just very meditative to put some distance between yourself and the market.