To what extent does an account loss become hopeless? The answer might come sooner than you think.

Buffett once said it best: “Rule number one, never lose money. Rule number two, never forget rule number one.”
But most people focus on how to double their money, while the truly savvy ones are doing something else—doing everything they can to avoid losing their principal.

Why? Because the math doesn’t lie.

Let’s look at some numbers:
• Down 10%? You need an 11% gain just to break even.
• Down 30%? You need a 43% gain to recover.
• Lost half? You’ll need to double your money.
• Down 70%? You’ll need a 233% gain to get back.

That’s why so many people never get out of a loss—
When your account is down by half, you’re already at the ICU door; lose 70%, and you’re basically done for.

Small holes can be patched, but a big pit? Don’t count on climbing out.
Whether you survive depends on whether you’re willing to cut your losses.

There are all kinds of stop-loss strategies. I use four myself, and the last one is the simplest, most intuitive, and delivers the steadiest returns.
That said, any rule has to fit your own style and rhythm; blindly copying won’t work.

Today I just want you to remember one thing:

You can be wrong a hundred times, but don’t let one mistake bury you for good.
A trader who doesn’t understand stop-losses will be forced out sooner or later.

The market will always be there, but the seats are reserved for those who are prepared.