The Asymmetry of Loss: Why I Hate Losing Money. 📉
Most new investors obsess over "How much can I make?".
Professional investors obsess over "How much can I lose?".
This is not because we are pessimistic. It is because of the brutal mathematics of drawdowns.
The relationship between loss and recovery is not linear; it is exponential.
The Recovery Trap:
Lose 10% → You need +11% to break even. (Manageable)
Lose 30% → You need +43% to break even. (Hard)
Lose 50% → You need +100% to break even. (Very Hard)
Lose 90% → You need +900% to break even. (Impossible)
This asymmetry is why "Risk Management" (Sortino Ratio, position sizing) is not just a safety feature. It is the engine of long-term compounding.
Avoiding the "big zero" is more important than chasing the "big win."
Rule #1: Don't lose money.
Rule #2: Don't forget Rule #1.
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