The Sharpe Report – Dan’s Portfolio: Issue No. 12 – Draw-Down Plan of Attack

Posted on Mar 16 2015 - 4:20pm by Sharpe Trade

A free look at how things are progressing for The Sharpe Report. Because I don’t just talk about when times are great.  Let’s also talk about when are experiencing draw-down. This issue was sent out to subscribers last night.

We Have Draw-Down

There is one major sin an investing or trading educator can commit. In fact, it is probably an ‘unforgiveable sin’, in the realms of educating others as to how one trades the markets.

Fudging your numbers.

Lying about your performance to make yourself appear better than what you are actually doing.

As you can see (and those of you who were ‘Aileron Market Balance’ subscribers have known this for years), I never lie. The numbers, are what the numbers actually are.

To lie about one’s performance would serve no purpose.

I am thankful that my portfolio numbers show me the truth of what is going on with my portfolio. It is only when I am armed with such truthful information that I can make a properly informed decision as to how to proceed.

And looking at our numbers truthfully, it is painfully evident that the portfolio has experienced draw-down.

What do I do?

What is the state of the portfolio?

What is the ‘plan of attack’, moving forward? Because I cannot continue to lose money. And I must have some sort of strategy. And remember this as well …

I look for ‘Win-Win’ scenarios!!

I discuss this in the following video entry …

3 Comments so far. Feel free to join this conversation.

  1. Willie March 16, 2015 at 9:16 pm - Reply

    Regardless of trading outcome, will sharpe trade discuss “recoupe method” at the end of month? Or in future post issues.?
    Thanks

    • Dan Shy March 17, 2015 at 10:53 am - Reply

      Heyya Willie,

      First of all, good hearing from you.

      Well, what we are doing here on the website, is the Sharpe Income project. At the same time, the Sharpe Income project has the Capital Gains strategy inside of it. Once that’s built, it sort of do it’s own thing and is exceedingly low effort, and can just be let go, in sort of the same way.

      And since we continually buy assets purely for income, I can’t really see how the Re-Coup method would ever come into play here.

      As a matter of fact, that’s one of the beautiful things about Income accounts.

      Sitting in a Cafe’ in the Old Square / Staroměstské náměstí of Prague. You check your phone …

      Oh …

      Look at that …

      Three dividends got paid to me this week.

      🙂

      Regards,
      Dan

  2. Willie March 20, 2015 at 12:29 am - Reply

    I wanted to get an idea on possible strategies I could use if I had2% drawdown on my core portfolio.

    I am currently working on building cash to develop the core portfolio.

    Thanks,
    Willie

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