Easier three times a year, harder to double in three years.

This brother has been telling me about his trading progress. At the beginning of the month, he turned 100 into 10,000 in one day. I advised him to withdraw most of the profits, but he didn't listen, and by the evening, it was all gone.

Today, he went from 1,200 to over 4,000 again, and I advised him to withdraw first.

For some partners with a smaller principal, I tend to be aggressive in accumulating the first pot of gold at the right moment, but accumulating capital is very important, and keeping the principal is even more crucial. If profits are not realized, it’s as if there were no profits; if you don’t spend the money you earned, it’s as if you didn’t earn it at all. That’s just a growth in numbers, which can be wiped out at any time in the market.

Accumulating principal can be somewhat aggressive, but it must be in the right direction.

Short-term profits obtained through high leverage are no different from gambling. In gambling, when betting on “breaking through three levels,” you only need to be correct three times in a row to multiply your bet by eight times. Isn’t that easier and more forgiving than high leverage, and does it accumulate faster? But can this method be used continuously? Can one profit in the long term through this method? This is what traders should think about.

Consider the long-term feasibility of the model before executing operations.

If one seeks high leverage to accumulate capital first, it will ultimately form an incorrect path dependency. Having previously earned ten times like this was just bad luck when losing. Next time, I can still earn ten times using this method. For traders, they may only see the tenfold profit but overlook that the process of trial and error leading to zero has already exceeded that tenfold.