Spot on. All one could add is that you have to translate Peter's sage advice into specific strategies: CYA for reasonable worst case scenarios, setting stop losses and profit taking targets, periodic portfolio rebalancing, etc. And it's equally (if not more) important to have strategies for avoiding "emotional drawdown": accepting setbacks, reminding yourself of your long term goals, developing habits and activities which restore your perspective and equanimity, etc. Otherwise it's all just a vague notion and his wisdom won't be there when you most need it.

Wow. An honest conversation, quite rare these days.

A great video. I have experienced both of the two most dangerous points and, yes, both are lethal. The concept of an emotional vs. financial drawdown was spot on the mark, especially if one manages friends and family capital. Like it or not, the emotional drawdown is far more lethal than a financial drawdown since it can (and often does) affect the way one manages money; thus, it's important to set yourself up to manage proactively this "internal psychological warfare" risk.

It's reassuring to know that even such a skilled, experienced trader as Peter can still have a painful, extended drawdown. The emotional part of investing and trading is often the most difficult part, in part because it's virtually impossible to time any trade perfectly. And one can go crazy wondering whether to throw in the towel or hang in there longer.... Peter adds a lot to RV!

Gotta love Peter Brandt. Always helpful, sage, advice for those with less experience. I'd have a beer with that man any day.

Peter is a legend. Word of wisdom. =) Thank you!

so true it's like he was talking about me.

Very good advice thanks

Always smart and always a pleasure. DLS

Excellent advice.......would like to add you want to have a stop (mental) whereby you have drop dead exit. Take the loss. Let the winners run, kill the losers with discipline.

Thank you for this Peter. I have also experienced the same feelings you described during feast and famine as I'm sure every other trader on RV has. You also have to accept when you are wrong. I sold all of my holdings before Trump's election in 2016 and have missed the massive rally ever since, waiting for things to fall, which they are now beginning to.