It will depend on exactly what you are doing but if you are in this game long enough ,you are likely to experience some significant downswings. I have found downswings in the last ten years of 30%+ on a couple of occasions. It isn’t fun.
Variance can be an absolute nightmare and is a tweet for another day. I always think there are a few key takeaways from these times though. It can be tough to tell sometimes but you have to try and work out if it is variance or if your edge has gone.
Let’s assume that you still have an edge and you are just running badly. It is crucial you don’t compound the downswing by making poor decisions and chasing in any way. You have to accept that variance is part of the game and that things will settle down and return to normal.
This can be a lot easier said than done. Take a break and reassess if needs be. Its crucial to have clarity and make optimal decisions. If you have lost your edge you have to bite the bullet and stop asap. Don’t compound the issue and just give money away.
One thing I know I was guilty of in the early days was trying to get losses back too quickly. You are much better off accepting that it will take time and maybe a significant time at that. Remember what got you into the good position in the first place.
Look to get the losses back, one small chunk at a time, rather than all in one go. You will be amazed how quickly things can turn around if you are patient and you still have an edge.
Going forward you can also have a think about altering your strategy so that the downswings aren’t so bad. Maybe play in markets where the variance is lower. Maybe risk less of your bankroll knowing such downswings are possible.
Big downswings can happen to anyone. Don’t let them destroy you and your bankroll. Just make sure you stay patient and grind your way back slowly. One small step at a time. Don’t force it.
ProPunting 