To make money in trading, there is an absolute red line: position control;
If you lose 50%, you need a 100% gain to break even.
If you lose 90%, you need a 900% gain to break even.
You made 10 trades of 10%, a total gain of 100%.
Then one loss of 50% brings you right back to square one.
This is why "losing less" is a thousand times more important than "earning more".
A single large loss can wipe out all your small gains.
Compound interest works both ways.
Positive compound interest lets you slowly become rich, while negative compound interest can bring you back to zero in an instant.
So, the ones who truly make money are not the ones who predict market movements the best,
but those who survive the longest. Thus, there is a classic principle in investing: first consider the risks, then consider the returns.
What often widens the gap in long-term returns is not who captured the most bull stocks, but who survived extreme market conditions. A 50% drawdown requires a 100% return to recover, and a 100% return often takes years to accumulate. Those seemingly conservative risk controls—position management, stop-loss discipline, refusal of leverage—are essentially preventing a one-time wipeout from negative compound interest.