BTC ETH Let's talk about the relationship between drawdown and compound interest today I have always emphasized the importance of stop loss and the operation method of compound interest in the live broadcast. I believe many friends have experienced earning several times, dozens or hundreds of times in a short period of time, a week or a month But in the end, if the time is prolonged, such as one year, two years, or three years, one's assets will not increase but instead decrease Why? Some traders go bankrupt due to reckless trading, lack of trading systems, emotional instability, and arbitrary long and short positions, which is expected to result in unfavorable outcomes But most traders ultimately go bankrupt not because of poor skills, but because after a major pullback, their mentality collapsed and they made irrational decisions A huge pullback often leads investors to "cut meat" and leave the market at the bottom Or take risks and leverage in order to quickly recoup costs This will completely interrupt the compounding process and even lead to the principal being reset to zero After further major drawdown Most people will fall into a 'revenge trade' I want to quickly recoup my investment, so I increased my position and relaxed my stop loss The last reset to zero Or fall into 'fear paralysis': Not daring to open a position, missing out on future market trends Is that how everyone is?