The issue of recovering losses in trading is worth pondering. If you enter with $5 and end up losing 60% (leaving only $3), there are now two options in front of you.

First scenario: continue investing $5. If you're lucky this time and earn a 100% return, you'll get $5, plus the remaining $3, totaling $8. It seems like you’ve turned the tide, but in reality, you've only recovered $2 in profit, which is still a loss compared to the initial investment.

What does this example illustrate? High returns on a single trade don't necessarily compensate for previous losses. To truly cut losses and recover, more cautious position management and risk control strategies are needed.