I am a participant of #BabyMarvin_f9c7🔥 . Let's discuss why many people say that the end of trading is liquidation?

Many people believe that the ultimate outcome of trading often leads to liquidation. Theoretically, if you continue trading, your funds will gradually decrease until they reach zero.

Assuming your trading probability is 50%, with a principal of £10,000, and a profit/loss of £1,000 each time, plus a fee of £100. In this case, the result of first making a profit and then losing is: £1,000 (profit) - £100 (fee) - £1,000 (loss) - £100 (fee) = -£200. In other words, although the chances and amounts of profit and loss are equal, you still end up losing due to the fees.

If we don't consider the amounts of profit and loss, but only the profit and loss ratio, for example, 10%, with the principal and fees unchanged, the result would be: £10,000 × 10% - (£10,000 + £10,000 × 10%) × 10% - £100 - £100 = -£300. If you add a spread, the loss will be even more severe. Theoretically, no matter how you trade, you will eventually face losses until the principal is exhausted.

In reality, the chances of loss for most people are often higher than the chances of profit because profitable traders usually possess some trading advantage.

Therefore, many people say that the end of trading is liquidation. This requires us to improve our winning rate to continue participating in the market. If you are feeling lost in trading right now and want to find direction, feel free to follow me and leave a message saying "1" to help you on your path to wealth!

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