I believe many traders have had this experience: one day, picking up a calculator and calculating, assuming their starting capital is 10,000 yuan, with an annual profit rate of 50%, the calculator surprisingly discovers that in just 12 years, this amount will turn into 1 million yuan. Even in the worst case, with an annual profit of 30%, it would only take 18 years for this amount to become 1 million yuan.

This numerical game can be even more grand; assuming the starting capital is 100,000 yuan, with an annual profit of 50%, it would only take 17 years for this amount to turn into 100 million yuan. Even in the worst case, with an annual profit of 30%, it would only take 27 years for this amount to turn into 100 million yuan. Moreover, from our practical experience, achieving an annual profit of 5% does not seem difficult, and 30% is completely achievable.

So, why has such a seemingly reasonable dream of compound interest, with rigorous mathematical logic, never become a reality? The answer to this question is not complicated: it is the losses in trading that severely weaken the atomic bomb power of compound interest and ultimately turn the atomic bomb into a dud.

Any trader with more than ten years of experience, which one does not have a bit of insight? The reason for continuously losing money is precisely that you have violated the law of certainty, which means that during unsuitable trading times, you cannot control your hands and make a large number of trades that are not very certain.

To speak honestly, including myself, as long as I violate the law of certainty in practical trading, meaning I make those trades that are not very certain, I will definitely incur losses without exception. Each loss leads to a decline in assets, and this decline is precisely the great enemy of compound interest.

While compound growth is indeed atomic bomb-like, the decline caused by losses is also atomic bomb-like. Thus, those seemingly casual and unnecessary trades ultimately turn the seemingly simple fact of compound growth into a distant dream. $BTC $ETH #币安合约实盘