A 10% dip happens in most years. A 20%+ fall happens roughly every five or six. These are not signs the system is broken; they are the toll paid for the higher long-run return. The investors who do badly are rarely the ones who picked wrong — they are the ones who sold during the toll.
Check yourself
A 15% market drop is best understood as…
Proof the strategy failed
A normal, recurring cost of long-run returns correct
A signal to sell everything
If drops did not happen, everyone would take the return, and the return would disappear. Volatility is what you get paid for.
Learn this properly
This term has a full interactive lesson in Wick — the chart, the pattern to tap,
and a live practice terminal to try it on. Free to start.