But with money managers who are really growing and improving, if they want to make a living out of trading and asset management, then they must continue to keep making New High Water Mark so that they can continue earning Performance Fees. This is the biggest pressure on us. And this is what we lose (much much more than capital) if we experience a drawdown of over 10%. It will no doubt take double the time to recover from those drawdowns and to be paid performance fees again. The capital I lose in my trading account is a much smaller concern to me and other money managers.
I understand where you are coming from, but still the risk to yourself that you are describing is the money you only have “in potentia”, whereas my risk is the very real money I already earned.
When you risk large amounts of capital of your own, trust in you increases. Your motivations might be different, but I don’t trust your word for it, I trust your money!