A drawdown of more than 3% is a very common term in the field of stock or fund investment. This refers to the stock price or fund net value falling by more than 3% from the highest point. This situation often causes investors to feel worried and panicked as they may lose their previous gains and fall into losses.

When a stock or fund has a retracement of more than 3%, investors should remain calm and analyze the market situation and the fundamentals of the stock or fund. Maybe the market is just in a brief downturn, or maybe the industry as a whole is suffering from pessimism for some reason. If the specific reasons are analyzed and they believe in the value of the stock or fund, investors can choose to hold on and wait for the stock price or net value to rebound.

However, to maintain risk control in stock or fund investments, drawdowns are inevitable, especially in volatile market environments. Therefore, investors should set stop loss lines in advance and strictly implement them to minimize losses. In addition, during the investment process, you must always remain calm and rational, and avoid listening to the noise and negative emotions of the market, so as to make your investment more wise and effective.