Four brutal truths about investing; understanding them can help you lose less money.

Increasing positions is not simply about 'averaging'.

For example, if you buy 10,000 worth of coins at 10 dollars, then buy another 10,000 when it drops to 5 dollars. Do you think the average cost is 7.5 dollars? Wrong! The actual cost is 6.67 dollars because the second purchase quantity is larger, lowering the average price.

Key point: after increasing positions, the cost is lower than you think, but don't feel 'safe' because of that; stop losses must still be enforced.

Can earning 1% daily lead to a tenfold increase in a year?

With a capital of 100,000, earning 1% daily over 250 days can turn into 1.32 million with compound interest.

But the reality is: very few people can earn a stable 1% daily; most people earn 5% today and lose 10% tomorrow, ending up with nothing. Self-discipline is more important than strategy.

Is a success rate of 60% still profitable?

If you trade 100 times:

60 profits, each earning 10% → total profit of 60%.

40 losses, each losing 10% → total loss of 40%.

Ultimately net profit of 20%.

The problem is: most people run away after making a little profit, but stubbornly hold on to losses, making even a high success rate meaningless.

From 10,000 to 100 million? Theoretically possible, but don’t dream in reality.

Earn 10% each time, and winning 97 times in a row can be achieved.

But the reality is:

Feeling pleased after earning 10%, wanting to earn more, but then losing 20% on the next trade.

After continuous profits, the mindset inflates, ultimately resulting in a total loss.

Investing is not a math problem, but a test of human nature.

Personal opinion: The survival rule in the investment market is to recognize the truth and maintain bottom lines.

Regarding increasing positions: low cost does not equal safety.

Increasing positions can indeed lower the average cost, but this is just a mathematical game. Many mistakenly believe that 'lower cost = safer' after increasing positions, which leads to complacency and deeper losses. My principle is: set a clear stop-loss when increasing positions, otherwise it's gambling.

Regarding compound interest: the ideal is abundant, but the reality is lean.

A daily compound interest of 1% sounds tempting, but in reality, the market is highly volatile and emotional interference is severe. Those who can execute stably are extremely rare. My advice is: give up unrealistic fantasies, focus on 'small profits and small losses, occasionally big profits'. Long-term accumulation is the right path.

Regarding win rates: a 660% success rate can still lead to losses.

Even if the win rate exceeds half, if the risk-reward ratio is unreasonable, the final result is still a loss. My strategy is: set strict stop losses and let profits run; this is how to align mathematical probabilities on your side.

Summary:

When increasing positions, calculate the real cost, but don't rely on it to 'get unstuck'.

Compound interest is beautiful, but first achieve 'stable profits' before discussing it.

Taking profits and cutting losses is more important than 'guessing price movements'.

Don't fantasize about getting rich; surviving in the market is the real victory.

Remember: the secret to making money is not 'being smarter', but 'being more restrained'.

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