The law of large losses is a lesson every trader must learn‼️
Here’s the harsh reality that most traders ignore:
The deeper the loss, the harder the recovery. Let’s consider this:
Losses vs. required profit to break even:
• Lose 10%? You only need +11% to recover.
• Lose 20%? Now you need +25% to break even.
• Lose 50%? You need +100% to recover.
• Lose 80%? You need to gain a massive +400% just to recover!
Here’s the harsh math of accumulating losses. And it teaches us one critically important principle:
Protecting your capital is more important than chasing quick profits.
Smart traders don’t just focus on big wins — they focus on small losses.
Here’s how to do it:
✅ Use stop-losses to close losing trades early
✅ Avoid excessive leverage — it amplifies both profits and losses
✅ Position size is key — never risk more than you can afford to lose
✅ Don't trade what you don't understand — learn first, then trade
Survival is a strategy.
Traders who win in the long run are those who can endure any market — bull or bear.
Because in this game, capital is oxygen. Spend it, and it's game over. Stay in the game, and opportunity will always arise again.
Protect your losses — it’s the only way to profit.
Make this your golden rule.
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