Drawdown & Why It Matters

📊 Drawdown = % decline in equity from peak to trough before recovery. High drawdown = high emotional stress + high risk of quitting. ✅ Example: Capital = ₹10,00,000 Falls to ₹7,00,000 → Drawdown = 30% To recover, you need +43% return, not 30%. 📌 That’s why controlling drawdown through stop loss & position sizing is crucial. 🧠 Rule: “Protect capital as if it’s oxygen. Without it, survival is impossible.”