🔍 The Law of Large Losses - A BLOOD LESSON IN INVESTING‼️

In investing, Large Losses are not just a number, but a huge challenge to return to the starting point. This is why investors need to understand and remember "The Law of Large Losses" – a simple rule that carries extremely profound meaning in risk management.

📉 The frightening truth behind the numbers:

• A 10% loss means you need an 11% gain to break even.

• A 20% loss requires a 25% gain to recover.

• A 50% loss means you need to earn a 100% profit – that is, double your remaining assets – to return to the initial level.

• A 90% loss? You need +900%, which is almost impossible in the short term.

👉 What does this mean?

Many new investors often chase profits, getting excited when the market rises and taking risks when the market fluctuates. But sustainable success does not come from how much you earn, but from how much you can keep when the market turns.

⚠️ The core lesson:

• "Learning to manage risk is more important than seeking large profits."

• Don’t let greed cloud your judgment.

• Always set stop-loss points and adhere to discipline.

• Never let losses exceed the controllable threshold.

🔐 Preserving capital is a prerequisite for long-term investing.

In summary: Invest wisely, don’t just look for ways to make a profit, but avoid large losses. Because losing a little is easy to recover from, but losing a lot will turn the whole journey back into a "mountain climb" full of difficulties.