Why do only a minority make money in the trading arena? Most lose money or even end up with nothing? Because most people lose it all themselves, which is what the 28 Law refers to in the market!

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

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

The 20% winners (I like to think I belong to this group, haha) only follow the big trend (buy when it goes up, short when it goes down), set stop losses in advance, and never go all in (always leave an escape route even if they are optimistic). Small losses are acceptable, but big losses are not.

Those who get liquidated can't even sit at the table; when a bull market comes, it has nothing to do with you! As long as your account is not dead, when the bull market comes, you are in the game! This is the only opportunity 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 some capital.)

For example:

You invest 10,000 yuan in cryptocurrency.

80% of the time, you operate fully invested, lose 30%-50% without cutting losses, and eventually lose it all → even if the market turns favorable, it will have nothing to do with you.

20% of the time, you invest a maximum of 5,000 each time, cut losses at 10%-30% → even if you make five mistakes in a row, you still have half of your capital left, and when the market turns, you can still fight!