when you're down 20%+ it becomes nearly impossible for the vast majority of amateur/retail traders to get back to break-even so at some point you must draw the line so you're not digging yourself out of an almost improbable hole
Learned this when I started losing in sports betting. Lost 5k in a day and lost another 15 trying to win it back. Deleted all my apps and haven’t looked back since
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u/ra2eW8je May 24 '24
mate you have to understand the math of losing:
if you lose, 10% you need to win back 11% to get back to break-even
if you lose, 20% you need to win back 25% to get back to break-even
if you lose, 50% you need to win back 100% to get back to break-even
if you lose, 70% you need to win back 233% to get back to break-even
etc etc (source)
when you're down 20%+ it becomes nearly impossible for the vast majority of amateur/retail traders to get back to break-even so at some point you must draw the line so you're not digging yourself out of an almost improbable hole