Failure Management
On Black Monday, October 19, 1987, the stock market fell 22% – the largest percentage drop in the Dow in history. The impact on my trading positions was calamitous. It blew a bankruptcy-sized hole into my account and wiped out the gains made in the prior two years.
Back then I was a 26-year-old “veteran” of the trading floor at the Chicago Mercantile Exchange who, two years before, had taken a $5,000 stake and turned it into a pile of cash for my personal trading account. Now it was all...