💥 Don't let small losses turn into big losses!

Trading Insight: Ed Seykota once said: The three essential elements of trading: cut losses, cut losses, and cut losses again!
But why is it so difficult to cut small losses? Actually, this is a survival skill!
🔸 The greater the loss, the harder it is to turn things around.

Loss of 10% → Need to earn 11% to break even

Loss 20% → Need to earn 25%

Loss of 50% → Need to earn 100%

Lose 90% → Need to earn 900% 🤯
The more you lose, the harder it is to play the comeback game!

🔸 Hope is the worst strategy.
The price hit the stop loss, and many people instinctively: remove the stop loss and pray for a rebound.
Reason: Admitting the mistake hurts one's self-esteem.
Reality: A small loss is the large insurance you bought; if you don't cut it, you'll eventually be stuck as a "non-voluntary long-term investor."
🔸 Simple Rules

The market proves you wrong → Exit immediately

The loss on a single transaction should not exceed 2% of the total funds.

A small loss is a tuition fee; stop-loss is the investment cost.

💡 Secrets of Legendary Traders
It's not that they are always right, but they lose very little when they are wrong.
What about you? Losing is everything.