Your first drawdown as a beginner: what did you do?

The first time an account drops 10% or 20%, new traders usually do one of three things: stop entirely, chase the loss, or pretend it isn't happening. The response matters more than the drawdown itself.

Your first drawdown as a beginner: what did you do? — drawdown and recovery diagram
An equity curve during a drawdown and its recovery

Share:

  • roughly how deep your first drawdown went
  • what you did while it was happening
  • what you know now that would have helped then
Your first drawdown as a beginner: what did you do? — risk-reward diagram
A risk-reward ratio of 1 to 2

The drawdown and recovery maths shows how recovery gets harder the deeper the hole.

Comments

Log in to join the discussion. Comments follow the community guidelines.

Log in to comment

Loading comments…