Top 5 investor types that survive a crash
Half of every drawdown is self-inflicted. Which personas sleep, which panic, and why.
A crash is a market event, but half of every drawdown is self-inflicted. In the same −30% week, one person keeps DCA'ing while another liquidates everything.
Of the 16 investor types, some have a structural advantage in drawdowns and some are systematically exposed to behaviour traps. Find your code and start from the 'do not' list.
Crash survival — Top 5
- 1🐢PDLAThe Armored Turtle
Diversification + rules + patience — the drawdown champion.
- 2🐘PDSAThe Methodical Librarian
Auto-DCA removes emotion from the cycle.
- 3🦉RDLAThe Asset Architect
Engineered diversification absorbs single-sleeve shocks.
- 4🦫PDLCThe Solitary Value Hunter
The patient collector finally gets prices they liked.
- 5🐰PILAThe Peaceful Gardener
Loose diversification and low beta cushion the blow.
Crash risk — Bottom 5
- 1🔥RISCThe Moth to the Flame
Emotion + concentration + day-trading at maximum risk.
- 2🐉RILCThe Visionary
Single vision bet — recovery time tends to be longest.
- 3🐂PILCThe Romantic Farmer
'It'll surely bounce' delays the cut.
- 4🐬RILAThe Trend Navigator
Multiple themes break together, losses stack.
- 5🐿️PISCThe Cautious Squirrel
Fear breaks every rule and avoids markets entirely.
What each of the 16 types should do
Tap your code to jump to that type's full guide.
Re-read your notes; run the 'half off' scenario you already wrote.
- · Execute the pre-written averaging table in tranches
- · Judge each thesis only on quarterly fundamentals
- · Keep 10-20% cash as ammo for the next leg down
- · Deploying all ammo on the first dip out of conviction
- · Selling everything because 'there's no time to analyse'
Rebalancing rule — this is its finest hour.
- · Rebalance the moment any sleeve drifts ±5pp
- · Hold core weights; do not swap names
- · Never touch the 6-month reserve
- · 'This time is different' rule changes
- · Hiding in short bonds and missing the recovery
Volatility is your stage — but rules tighten further.
- · Trigger the pre-written stop-loss immediately
- · Auto-cut position size to 50% of normal
- · Halve your weekly trade quota until recovery
- · Up-sizing because volatility is up
- · Trying options or futures to recover fast
Outlier regime — kill-switch first.
- · Trigger pre-defined emergency-stop rules
- · Auto-cut strategy capital to baseline
- · Restore capital in 50% steps post-recovery
- · 'This is the opportunity' capital boosts
- · Adding a new strategy that was never backtested
Watch confirmation bias the hardest of any cycle.
- · If vision allocation breached its cap, trim now
- · Re-write one 'thesis broken' page
- · Keep 20% cash untouched
- · Adding new vision bets to 'catch the bottom'
- · Skipping bear cases on purpose
Themes break together — pick what to keep.
- · Keep only themes with proven revenue growth
- · Sell 'no longer fun' names by rule
- · Block new theme entries for 6 months
- · Averaging down as 'bottom buy'
- · Adding new themes from YouTube tips
Highest danger — outside help required.
- · Cut high-risk account cap in half right away
- · Force a 24h cooldown on every new trade
- · Name one person who must approve new positions
- · Going for a 'one shot' recovery
- · Using leverage to average down
Quick exits are your edge.
- · Tighten stop levels another notch
- · Sell 'no longer fun' positions on rule
- · Auto-sweep some profit into short bonds / MMF
- · Hanging on with averages-down
- · Skipping the quarterly review before the next rotation
The quiet collector — your golden window.
- · Tranche-buy watchlist names that reach your safety-margin price
- · Keep long holdings unless the thesis broke
- · No new trades before the next earnings print
- · Bottom-fishing into unfamiliar assets
- · Selling long holdings on transient noise
Stay on the rule — the drawdown champion.
- · Auto-rebalance as planned
- · Defend the 'untouchable 80% core'
- · Isolate the 6-month reserve in a separate account
- · Spontaneous shifts into bonds / gold
- · Buying 'safe-feeling' assets without numbers
Trade less; wait for clean signals.
- · No entries without a pre-defined signal
- · Sit out for 24h after each take-profit
- · Compare monthly rule vs P&L
- · Up-sizing because of movement
- · 'Symbolic' buys in unfamiliar assets
Rules unchanged — the drawdown baseline.
- · Hold DCA ratios steady
- · Rebalance as planned
- · Mute 'everyone is selling' news
- · 'Just one quick sell' rule break
- · Bumping cash weights on impulse
Re-test each thesis for real.
- · Explain each holding's thesis to a third party
- · No trades before the next earnings print
- · Keep the 6-month reserve aside
- · Averaging down on 'surely it'll bounce'
- · Letting one name pass 50% of assets
Pull weeds only; keep the main plants.
- · Trim 1-2 names you've lost interest in
- · Re-test thesis for tip-driven positions
- · Keep the 6-month reserve aside
- · 'Sell everything' impulses
- · Adding unmanaged tip names
Step back from fear — keep the rules.
- · Re-read the averaging table for your one held name
- · Re-read your winning-trade journal
- · Defend the emergency reserve
- · 'Sell now, re-enter later' attempts
- · Avoiding markets for 6 months out of fear
Stay inside the experiment budget; protect the core.
- · Cut the experiment budget by 30%
- · Pick one sample to hold for 1 year
- · Never touch the main book
- · 'Buy everything on sale' moves
- · Averaging down on sample positions
Frequently asked questions
- Can any type 'win' a crash?
- 'Lose less' is more accurate than 'win.' Your biggest tool is a pre-written 'do not do' list for your own type.
- How do I find my type?
- Take the 60-question test (5 minutes, free) to get your 4-axis scores and code.