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What's the worst drawdown you can handle?
- Thread starter a529612
- Start date
Buy-and-hold has seen drawdowns of 30% to 65% in the most recent ten years. It's actually rather fun to grab the data off Yahoo Finance for the Dow, the S&P 500, the Nasdaq 100, the Russell 2000, toss them into a spreadsheet, and calculate the drawdowns. (If you prefer, you can use Total Return series such as SPY etc.). Quite illuminating.
If your mother can stomach 40% DD's in her B&H IRA, maybe that means you can handle 40% DD's in your actively traded account?
If your mother can stomach 40% DD's in her B&H IRA, maybe that means you can handle 40% DD's in your actively traded account?
2 or 3% max
My worst drawdown was 50% over a period of about four months, slowly bleeding. I was totally off my game. The following six months after the drawdown I quadroupled my account, as I got my act together.
I'm a pure discretionary trader, and I believe 100% in myself and my abilities.
I'm a pure discretionary trader, and I believe 100% in myself and my abilities.
Quote from jorgeamado88:
My worst drawdown was 50% over a period of about four months, slowly bleeding. I was totally off my game. The following six months after the drawdown I quadroupled my account, as I got my act together.
I'm a pure discretionary trader, and I believe 100% in myself and my abilities.
How did you make your comeback? Did you blow everything out and start fresh?
10% to 30%, depending on situation.
Normally 10%.
Normally 10%.