People often complain, "If only I had more principal, I would have doubled my money long ago." This is a classic case of self-deception.

Legendary trader Livermore answered this question through practice: being able to steadily grow 20,000 into 200,000 theoretically means you can turn 2 million into 200 million. Conversely, giving someone 20 million could still result in zero within a few months. The key is not the size of the principal, but whether a person has mastered the "complete framework for stable profits"—which includes a clear trading system, ironclad execution, and a deep understanding of human weaknesses.

Unfortunately, 99% of market participants are repeating the same mistakes: making a profit and then becoming complacent, thinking they are gifted; losing once and then breaking down emotionally, frantically doubling down to try to recover. This is not trading; it’s contributing to the platform’s fees.

**How can this cycle be broken? Start by building your personal trading framework.**

Livermore’s famous method was called the "Key Point Trading Method"—only entering when the price breaks through a key resistance level; cutting losses immediately when a 10% loss occurs; and letting profits run once in the profit zone. In simple terms, your trading rules must be ingrained like machine instructions, leaving no room for ambiguity.

Entry signals must have principles: don’t guess based on feelings. Do you enter only when there’s a volume breakout at a key level, or wait for a pullback to support before following? For example, chasing Bitcoin when it breaks through weekly resistance with volume, but never blindly bottom-fishing.

Discipline for stop-loss must be cold-blooded: the loss on a single trade must be strictly controlled within 2%-3% of total capital. Livermore himself experienced three bankruptcies before realizing this—"If you lose 10%, you must cut your losses; otherwise, a single misjudgment could wipe out all your gains."

Position sizing should be data-driven: don’t go all-in at every turn; that’s a recipe for death. Use a pyramid-style position building method—start with 20% of your capital to test the waters, add positions in stages as you profit, and stop immediately if you lose. This way, you won’t miss the start of a trend, and risk is effectively controlled.

In one sentence: the value of a trading system is not to boast about, but to ensure you can follow your plan systematically during market crashes and panic. This is the only long-term way to survive.