Losses & drawdown
You will take losses this week, next month, and in year ten. The difference between a funded trader and a blown account is not the losses — it's the accounting.
A loss inside your model, at your fixed risk, is a business cost. A restaurant doesn't panic when it pays rent. You risk a fixed fraction per trade precisely so that no single outcome matters.
Your edge only exists across a series of trades. Any single trade is a coin flip weighted slightly in your favor. Judge weeks, not trades.
The dangerous loss is the one that changes your behavior: revenge entries, doubled size, abandoning the model mid-session. That's when a business cost becomes a spiral. The fix is boring and it works — same risk, same model, review at the end of the session, not during it.
Protect the process, and the process protects the account. React to nothing except your stop loss being hit.
Learn to take a loss, don’t get angry at the markets. YOU did something wrong, not the markets. Realise that, journal your trade, and then log off. Don’t take another trade, just log off. LOG OFF. The greatest thing you could do if you take a loss is just to move on, hop off the charts, and when you come back the next morning, try to not even remember it. View the markets just as before, don’t mind the lost money from yesterday, because that will just get you into a losing mindset.
Go in to the day and prepare to see a red number.
You can be emotional outside of trading, but when it comes to this, it’s just about how you act on your emotion.
Stick to the strat. No exceptions.