Why is it that the smaller your principal, the more you lose?

Because you simply can't afford to wait. Others have 10 million in their accounts, and catching a market trend for a 10% gain means 1 million. But you only have 1,000. Even if it goes up 10x, 10,000 won't fill the gap in your life. So you trade frantically, looking for opportunities every day, going long or short every minute, and end up losing more and more.
You mistakenly think trading is like working a job—you need to make money every day to survive.
But the truth is, trading is not about winning every day; it's about fighting once every three years, and one fight feeds you for three years. When the trend comes, go all out; when the tide recedes, stay empty and cultivate.

The gentleman hides his tools in his body and acts when the time is right.
Poverty born from impatience is as hard to cure as a terminal illness. Only by changing your mindset can you reverse your fate.