Seniors often say to newcomers: "As long as the account is preserved, everything has a future."
Many people nod after hearing this, but once they enter the market, they forget it all.
Many engage in copy trading, thinking about doubling their money every day, but never consider how to avoid that one fatal drawdown.
But the coldest reality of the market is that the deeper the drawdown, the harder it is to recover.
Here's a simple calculation:
A 10% drop can still be recovered;
A 30% drop comes with a higher price to pay;
A 50% drop basically puts you at the life-and-death line;
If it drops to only 30%, you're close to being eliminated by the market.
So many are not defeated by the market but are dragged down by their own luck.
You have seen this scene more than once:
Clearly the direction is wrong, yet you stubbornly hold on;
Clearly the logic has been broken, yet you hang on for dear life;
Clearly you should leave, yet you think of "waiting a little longer."
What you often get instead of a reversal is a shrinking account.
I have mentored many newcomers, and what they ask the most is not how to make money, but why they can't recover. The answer is simple: the losses are too deep.
Those who can survive in this circle are all doing one thing—keeping their losses within a bearable range.
In my own trading, I only follow a few simple principles:
If I don't understand, I don't enter; if I make a mistake, I leave immediately;
If the trend deviates from expectations, I stop right away.
There are many ways to set stop-losses, you can use fixed ratios, structural breakouts, or trailing stops, whichever you prefer. But there is only one core principle: don't let one judgment kick you out.
The market will always have the next wave, opportunities will always have the next round.
But if the principal decreases to a certain extent, you will never be able to catch up again.
To truly stand firm in this market, remember this simple truth:
Mistakes can be corrected repeatedly, but positions cannot be recklessly smashed;
Directions can change, but accounts cannot be drained.
Those who can make it to the end are those who understand to prioritize their survival.
You are not moving fast enough; rather, you are stumbling in the dark alone. I have always been here, and the light is right ahead. If you don't keep up, you will forever be trapped in the darkness.
