#TradingTool101 The "Buy the Dip" Trap They Don't Teach You
Let me break this down for you like a teacher explaining a brutal math problem—because that's exactly what this is.
You’ve heard it a million times:
"Just DCA!"
"Buy the dip—it’s free money!"
But here’s the cold, hard truth they won’t show you—the math of losses.
The Painful Reality of Drawdowns
Lose 10%? You need +11% just to break even. (Not bad, right?)
Lose 50%? Now you need +100%—a DOUBLE just to get back to zero.
Lose 90%? You need a 10X (900%) rally just to see your original capital