February produced another all-time max drawdown in the portfolio. During times like this...logic rains down...am I doing something wrong? How much more money will I lose to the market?
Another common logic trap is should I second guess my system? Should I take the next trade? A few weeks ago...I received several new signals...and I took every one of them only to see several of them hit their exit signals last week.
You want to change your rules...filter out times like these...so difficult to watch your money be eaten away by the current market forces.
But, that is why you test your ideas so fully...both in good times and bad. So, you can continue to follow your system despite all the others washing away in this storm.
I'm sure there will be more weeks if not months that I buy stocks only to sell them weeks later. As bad as it sounds to yours truly, more months of drawdown. But, I have accepted this fate. I have accepted these circumstances because I have tested every ounce of my ideas in every market I can imagine...and I agreed to the results.
And when the storm is over...and everyone is afraid to buy stocks...my system will continue to generate signals of stocks to buy. And I will buy them. And follow the market wherever it leads despite how difficult that may be.