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Drawdown in the finance industry can have two meanings. Drawdown in banking refers to a gradual accessing of credit funds. Drawdown meaning in forex refers to a reduction in equity – how much an investment or trading account is down from the peak before it recovers back to the peak. Drawdown Syndrome is when ones drawdown is more than they can mentally handle. They start to get delusional and say things they shouldn’t. In some instances they may even take trades in which don’t make sense. More times than not they still end up winning. It’s a major psychological battle they tend to fight the rest of the remaining career trading.
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