16min chapter

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228: The Trading Panel – Episode 5

Better System Trader

CHAPTER

Navigating Drawdowns and Trading Challenges

The chapter explores the psychological and financial challenges faced by traders during long drawdown periods, cautioning against high win rate strategies that can lead to substantial losses. It highlights the risks associated with selling puts and the importance of risk management to avoid catastrophic losses. The speakers stress the need for realistic expectations in trading, advocating for diversified strategies including trend following and mean reversion to stabilize profits and hedge risks.

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