Who understands this, family! The harshest unspoken rule of the market: The deeper the loss, the harder it is to turn things around!
It's like getting stuck in a quagmire; the more you struggle, the faster you sink, ultimately being pressed to the bottom without the ability to crawl out!
Buffett has long made the truth of trading clear:
1. Never lose money;
2. Engrave the first rule into your DNA!
Too many people focus on the "doubling myth" while forgetting the only bottom line of the market's tough players — never let your account hit zero!
Mathematics never lies; this set of break-even data is painfully outrageous:
. A 10% loss requires an 11% gain to break even;
. A 30% loss requires a hard-earned 43% gain to recover;
. A 50% loss requires doubling to get back in place;
. A 70% loss? Sorry, you need to earn 233% to pull the account back from the edge of the cliff!
This is the root of why most people can't break free: half of the account is gone, already half a foot in ICU; losing seventy percent is basically equivalent to receiving an “exit notice”!
A small loss is like a scraped knee; timely stop-loss can lead to quick recovery; a big loss is like a serious injury, with a high probability of being beyond redemption.
Remember: The core of survival in the market lies in the word “stop-loss” — cutting off the loss in time allows you to keep the green mountains and not fear the lack of firewood.
I commonly use four stop-loss methods in practice, especially the last one, which is simple, easy to operate, and has a direct cost-effectiveness!
But remember: Any discipline must fit your own trading system, logic, and rhythm; never blindly copy others, or it may backfire!
Finally, please engrave this sentence in your heart: You can be wrong a hundred times or a thousand times in trading, but you must never let a single fatal mistake kick you out!
Hoping for the luck of "just holding on is enough" and unwilling to stop-loss will ultimately lead traders nowhere and with no future!
May we all maintain our stop-loss bottom line, becoming more stable and brighter in the ever-changing market, and firmly weld our accounts into the red! @阿二说币
