Why do only a few people make money in trading? Most lose money or even go bankrupt? Because most people lose everything themselves, this is what is referred to as the 28 rule in the market!

80% of people hold on stubbornly when they are losing, always thinking 'it will come back up'.

When losing money, they play dead, and cutting losses feels like losing their life. They go all in, borrow money to increase their positions and gamble on luck, resulting in a liquidation and exit, leaving no chance to correct their mistakes!

The 20% winners (I consider myself among them, hahaha) only follow the big trend (go long when it rises, go short when it falls), set stop-losses in advance, and never go all in (even if optimistic, always leave a way out). Small losses are acceptable, but big losses are not.

Those who get liquidated can't even get to the poker table; when a bull market comes, it has nothing to do with them! As long as the account is not dead, when the bull market comes, you will be in the game! This is the only chance for a comeback!

(Don't learn from the 80% cannon fodder, learn from the 20% tough ones: follow the trend, be willing to cut losses, and keep cash available)

For example:

If you invest 10,000 in cryptocurrency,

80% strategy, fully invested, loses 30%-50% without cutting losses, and eventually goes to zero → even if the market turns favorable, it has nothing to do with you.

20% strategy, investing a maximum of 5,000 each time, cutting losses at 10%-30% → even if you make 5 wrong calls in a row, you still have half of your funds left, and when the market turns favorable, you can still fight!