CluenexGlossary · Pro tools
Maximum drawdown
The biggest fall from a high to a later low, before a new high was reached.
Why it matters
Drawdown is how investing feels. A stock that doubled but halved along the way asked you to sit through a 50% loss. Most people sell near the bottom of drawdowns they didn’t expect.
How to read it
Ask yourself whether you could hold through the worst drawdown shown. Recovery time matters too: some falls take years to win back.
Also called: drawdown, peak to trough
Related
In the Cluenex app, this explanation opens next to every maximum drawdown figure, with the live reading for the stock you are looking at. Open it in Cluenex