Why should we focus on risk control in trading?
If you tell me today that you have doubled your money in a month, or made thousands or even tens of thousands from 100 yuan in three months, I will not envy you, because I know that this is not a long-term solution.
Risk and return are proportional. If you can make so much money in a short period of time, it means that the risk you take is also very large. I do not recommend trading in this way because your funds will always be 100%. If you make 100 from 100 to 1000, and the risk control is not good, as long as you lose 80%, you will only have 200 left. You may not feel the cost for a while, but I will give you a simple example: from 100 to 1000, you earn 900%, but when 1000 loses 80%, you will only have 200 left, and the cost of losing is far greater than the cost of winning.
So what is the real "power"? If you can make 10% every month and control the loss within 10%, then you are already very powerful. Because you not only make money, but also control the risk very well. In other words, I only lose 10% at most, but I have the opportunity to get unlimited returns.
In the world of trading, slow is fast. If you are impatient and want to accumulate wealth quickly, you may gain in the short term, but you will eventually lose it. If you walk steadily and take one step at a time, although it will be slow at the beginning, you are doing the right thing. With the "eighth wonder" of compound interest, your wealth will eventually grow faster than those who pursue speed.
