Why is it so hard to break out of the cycle of trading losses (Part 2)
One of the fatal mistakes that losers often make is: underestimating low-probability risks and allowing single large losses. They always think that "an occasional big loss is fine," yet they do not understand the compounding destructive power of risk.
Assuming you have a capital of 100,000, a single loss of 50% leaves you with only 50,000, and to return to 100,000, you need to make a profit of 100%, which is harder than climbing to the sky.
Professional traders have a golden rule: the risk of a single trade should never exceed 2% of the capital. Even if you make 10 consecutive mistakes, the total loss is still controlled at 20%, and there is still a chance to recover. But ordinary traders often rely on their feelings and take large positions, and when a black swan event occurs, they face a total loss, wiping out all previous profits.
This mode of "small gains when making money, losing everything when losing" is destined to cycle in the loss trap.
The core to breaking out of the loss cycle is not to seek more advanced techniques, but to break these invisible closed loops: replace predictive obsession with probabilistic thinking, tame emotional instincts with rules and discipline, integrate fragmented knowledge with a complete system, and protect capital safety with risk control.
The essence of trading is not to conquer the market, but to conquer your own cognitive biases and behavioral inertia. When you shift from "pursuing correctness in every trade" to "pursuing long-term profitability," and from "making decisions based on feelings" to "executing based on a system," the cycle of losses will naturally collapse without effort.
