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THREETREND RESEARCH

18th Nov · SEBI-Registered Analyst

How to get rid of Drawdown, Over trading, continuous Loss * Though it is very difficult to make any sureshot strategy which makes continuous profit in every phase of market * In Some phase of market , your strategy may not work or low profitability or you can suffer loss trades * To get rid of such situations 1. Always believe in your system 2. Give Your strategy enough time to prove it is a successful strategy 3. Don't blindly follow backtest results, because backtest results never apply human behaviours like emotions, greed ,fear in trade. 4. Your strategy have sometimes one phase which gives you highest profit, don't be fearful and book early in such phase, always try to find such trend or phase where your strategy is most successful and highest profitab trades * If you can able to find out such phase, like recent rally of mid cap or small cap , where many stocks became Multibagger within 5-6 months * for example, Like if you backtest your option selling strategy, for every day in a week have different % of accuracy and some days like Monday or Wednesday have higher degree of accuracy compared to whole week trades.. try to find out such days or phase or trend 📈 * If you find such phase where your system not generating continuous profit trades, try to avoid taking big trades or trade only when you are quite confident, this way you can avoid some loss trades and lower your drawdown. * To get rid of overtrading, keep limited capital size in your demat, so you can trade with minimum capital only * If you have developed bad habit of trading with multiple lots , though trade is not in favor, this reduction of capital will allow u to trade with 1- 2 lots only * After Drawdown phase, or loss phase, try to recover your confidence by making 3-4 continuous small or medium profit trades, this way your confidence will regain again.

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