Timely taking profits and securing gains is the most effective strategy to cope with drawdowns, but this is just the first step. More importantly, once you exit the market, do not rush to re-enter due to impulse. I have seen too many people who made a fortune during a bull market end up losing everything due to a moment of impulse.

The reason many people find it hard to recover is that they have previously experienced large trades and lost interest in small investments. They may have been accustomed to trading millions of dollars, and now, trading tens of thousands of dollars naturally fails to excite them, as they think about when they can earn it back. In such times, they are prone to take high-risk strategies, increase leverage, and the results are often not optimistic; very few can be lucky enough to escape unscathed.

Saying this now, some may not take it seriously, but in a bear market, these lessons will become profound and real.