#BTC #BTC It is said that compound interest is the eighth wonder of the world. For example, making money by speculating in cryptocurrencies seems to be very simple. If you have 1 million yuan of capital and double your returns every year, this return is theoretically very simple. After all, in the cryptocurrency circle, people will always be looked down upon if you don't have returns of dozens of times every year.

100W, 200W, 400W, 800W, 1600W... In four years there will be 1600W.

But this is only a mathematical result in theory. It is not easy to do in practice. So what interrupts your compound interest?

It's a big mistake.

Missing out on an opportunity is not a big mistake, and making a mistake is not a big mistake as long as you stop loss. Only when you carry out a high-leverage order and eventually sell your position at a loss is it a big mistake. No matter how many times you have done it right before, as long as you make a big mistake, all the previous correct answers will be zero and the compound interest will be terminated.

This is why so many people have not made any money or even suffered huge losses even though they did not miss out on the opportunities in the past few years.

In 10 big market trends, even if you miss out on 5 and make mistakes 2 times but you stop losses, if you only seize 3 times, you will still have ten or even dozens of times the returns. The reason why many people cannot do this is because they make big mistakes and cannot accumulate compound interest by making losses and gains.

What’s the point of doubling your profit this time, only to lose half of it when the market crashes?

In the eyes of many users, the big V group always seems to be a greenhorn. They either miss out on opportunities or make mistakes and are laughed at every time. However, the core skills of many big Vs are to prevent themselves from making big mistakes. It doesn’t matter if they miss out on opportunities or misread the stop loss. As long as they don’t make big mistakes, compound interest can continue and they will make a lot of money sooner or later.

Take Buffett for example. His annual returns are not very high. Although he sometimes makes wrong decisions and buys the wrong companies, such as buying IBM and selling airline stocks at a loss, these are small mistakes. He never makes big mistakes, which allows him to compound interest in the investment market for decades and become the world's richest man. Those fund managers who laughed at him for a while are now buried with grass several meters high. #BTC #ETH #etf