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On the Importance of Not Losing — A Guide to Compound Interest

Published 07/11/2020, 08:00 AM
Updated 07/11/2020, 09:40 AM
On the Importance of Not Losing — A Guide to Compound Interest

When I began to get interested in trading, about 20 years ago, I read many books on the topic. One day, I saw: “In order to make money in the markets, the importance is not to lose.” Duh! — did I tell myself while reading… only later to discover the real meaning behind that catchy phrase, which I have since applied when trading, and to a great benefit.

In order to understand the true meaning of, “In order to make money in the markets, the importance is to not lose,” one has to remember what Albert Einstein famously said about compound interests being the most powerful force in the universe:

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