Drawdowns, Human Emotion and Wanting to Know

Feedback in:

Hi Michael,

I really enjoy your podcast and thank you for doing it. You are spot on and have added a lot of value to my thinking and challenged limiting mindsets I wasn’t even aware I had.

It would be really helpful if you talked about drawdowns and your “process” for getting through them and overcoming the standard human emotions they generate. Assuming someone is doing everything perfectly in their trend following execution (proper position sizing, diversified, ignoring the news, not looking at charts, using risk capital, etc.), do you have a process for getting through a drawdown when time marches on so slowly and our impulses are now now now?

Let’s say you believe trend following works how do you keep yourself sane and unemotional during difficult stretches. Do you have a process you use?

Thank you!

Kind Regards,
[Name]

Have you listened to all of my Basso, Faulkner and Seykota podcast episodes?

All of the psych pros across my podcast, i.e. Odean, Kahneman, Statman, Ariely, etc.? That’s just a few.

Literally dozens there.

My books?

No secrets.

Note: For those that want even more hands on instruction.