My worst draw down was 60% over 2 weeks. I think I can take a global financial crisis - because I expect my losses to be 100%. I don't use leverage - so it can't get much worse than that.
Most people never trade stocks that move that much, that contain within them that level of risk, or deal with losses as often as I have had to do.
The problem with down markets is they happen so rarely that most people who invest in good, solid companies don't know how to react them when they do enter one - just like I didn't at the start of my trading career.
When every other week has one losing significant fractions of their total net worth relatively quickly, then the global financial crisis just becomes another day in one's year.
I see what people call black swans on a monthly basis. They no longer surprise me.
Most people never trade stocks that move that much, that contain within them that level of risk, or deal with losses as often as I have had to do.
The problem with down markets is they happen so rarely that most people who invest in good, solid companies don't know how to react them when they do enter one - just like I didn't at the start of my trading career.
When every other week has one losing significant fractions of their total net worth relatively quickly, then the global financial crisis just becomes another day in one's year.
I see what people call black swans on a monthly basis. They no longer surprise me.