Understanding Drawdown — The Real Risk in Your Portfolio

Want to measure how risky your portfolio really is? Look beyond volatility and check your Drawdown. 📉 🧾 Drawdown = The maximum loss from a peak to a trough before a recovery. 🔍 Why it matters: It shows how much you could lose emotionally and financially Helps assess if your strategy is resilient in bear markets 💡 A portfolio with a 10% drawdown is much more stable than one with a 40% drop — even if they have the same returns. 📌 Use drawdown to build a strategy that fits your risk tolerance, not just your return goals.