Be a Good Loser is the only solution to cope with the Downside!

Yesterday, my friend asked for clarifications about how to take care
of the downside.  I would say, "To become a "Good Loser" is the only
way to cope with the downside."

Let's see how other Master Traders managed to cope with the downside:

1)  Seykota: "Win or lose, everybody gets what they want out of the
market.  Some people seem to like to lose, so they win by losing
money."

Seykota: "Risk no more than you can afford to lose and also risk
enough so that a win is meaningful."

Vince Lombardi: "The difference between a successful person and
others is not a lack of strength, not a lack of knowledge, but
rather a lack of will."

Successful trend traders like Ed Seykota, David Harding, Richard
Donchian, Richard Dennis, they all know that by having a strong will
in trading is a must especially during the drawdown periods, and in
most cases they have gone through 40% - 60% drawdown before the big,
big trends come.

So do you possess a strong will to trade like those successful trend
traders?

2)  "Whenever we get a period of poor performance, most investors
conclude something must be fixed. They ask if the markets have
changed.  But trend following presupposes change." - John W. Henry.

Markets are driven by people and their emotions; this is what all of
these markets had in common - people - and people just don't change.
What really has changed is the level of our confidence in what we do
or the system we use.

So if one is not sure of what he does or has lost confidence in the
system he uses, it is time to stand aside and re-test his trading
system or strategy with the Demo account again until he regains his
confidence.

You may want to ask me, "How I can become a Good Loser yet with good peace
of mind?"

My answers are simple:

i)  Reciting my secret weapon - "The Daily Affirmations."
Since I have expected the worst before I take any trade and I know it
cannot be worse than the worst anticipated.  So why worry?  Don't
worry worries until worries worry you.

ii)  Look at my drawdown, what is the "% value" of drawdown against
my trading capital or my recent equity peak?  Compare to 40%, 50%
or 60% drawdown experienced by the great trend traders, which is
higher?  Mine has never gone more than 35% so far.

iii)  Treat my drawdown as "Abstract Money', and this is just
temporary advance to the market as cost incurred to acquire a big
trend down the road!

iv)  I know Trends will surely come, as sure as the sun will rise
from the east tomorrow morning!  Of course, I make sure I don't
blunder on your money management so I can "live" until tomorrow to
trade!

That's how I become a Good Loser!