Cash-out is the best way to control drawdown; this is just the first step. The most important thing is not to resist the urge to jump back in once you've come out. I've seen many people who made a lot of money during bull markets lose it all this way. Even though they cashed out and have bought houses and cars, they got carried away in a moment of excitement and immediately sold to jump back in, resulting in massive losses.
Many people find it hard to recover because they've played with large amounts of money before. Small amounts no longer excite them. They used to trade millions of dollars easily, but now when asked to trade tens of thousands, they lose interest. When will they make that back? At this point, it's easy to increase leverage and play recklessly, and the outcome is predictable—very few are lucky enough to walk away from it.
Many may not take this seriously now, but they will understand it deeply during a bear market. 🤣🤣🤣
