The concept
Protecting your capital so you can continue learning and participating.
Why it matters
Losses compound against you: a 50% loss needs a 100% gain to recover.
How markets interpret it
Many long-lasting traders prioritise survival over maximum gains.
Key takeaways
- Survival comes first.
- Big losses are hard to recover from.
Knowledge check
After a 50% loss, what gain returns you to break-even?
Key terms · hover or tap for a definition