Does your self-worth rise and fall with your P&L?
When the account balance decides how you feel about yourself, trading becomes unbearable — every loss is a verdict on you. Separating worth from results is slow, essential work.
What's your experience?
- how losses and wins affect your self-view
- the moment you noticed the pattern
- what helps you separate the two
The drawdown guide reframes losses as statistical events, not judgements.
Background: Drawdown and recovery: why a 50% loss needs a 100% gain
Losses and gains aren't symmetrical. See how much you need to recover from a drawdown, what losing streaks do at different risk levels and how to set limits.
How much do you need to gain to recover from a 50% loss?
100%. The gain needed is the loss divided by one minus the loss, so larger drawdowns need disproportionately larger gains.
What is maximum drawdown?
The largest fall in account value from a peak to a later low, before a new peak is reached, usually expressed as a percentage.
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