Drawdown
A drawdown is the drop from a portfolio’s previous high to a later low.
Neden önemli
Drawdowns show how painful losses can get, which helps set realistic expectations and risk levels.
Basit örnek
If your portfolio falls from $100,000 to $80,000, that is a 20% drawdown.
Yaygın hatalar
- Ignoring drawdown risk when choosing investments.
- Assuming a portfolio that rose fast cannot fall hard.
- Panicking at normal drawdowns for your strategy.