The key to being a successful forex trader is coming up with a trading plan that enables you to withstand periods of large losses. The drawdown number emphasizes the level of loss you might suffer while trading your trading strategy. Drawdown becomes a serious problem though when the losses are large in proportion to the funds held in the account. If you trade in any kind of volatile market, some drawdown is inevitable. It is one of the risks associated with putting your money into financial markets.