Have you ever calculated the power of compound interest? In theory, it's incredibly simple, but in reality, nine out of ten people fail. Where's the problem? It's very straightforward—our brains are naturally wired to seek immediate pleasure, while compound interest requires patience.

The thrill of chasing gains and cutting losses in the moment is real, but the expectation of doubling your account after years is too illusory. Our brains instinctively choose the former. This isn't because you're not smart enough; it's a trap left by evolution.

**Why do traders' dreams of compound interest always shatter?**

Overconfidence + frequent trading—this combination is the most destructive. The data is sobering: low-frequency traders can achieve an annualized return of 18.5%, while those constantly watching the market and trading frequently only get 11.4%. The difference isn't just 3 percentage points; every trade eats away at your profits through fees and slippage. These invisible costs are like termites slowly gnawing at your principal. Want compound interest? Don't let it leak out through fees first.

Then there's the common problem of emotional decision-making. Greed when making profits, inability to stop; fear when losing, instant panic selling. The result? Small gains turn into big losses, and compound interest becomes compound damage.

And there's the black swan event—an unpredictable killer. A major drawdown can wipe out years of accumulation. The Luna crash in 2022, for example—those heavily invested were wiped to zero, years of effort gone in an instant. This isn't just a matter of probability; it's something that can and does happen.

**Systematic pitfalls leading to failure**

Do you think it's your willpower that's lacking? Wrong. The entire market is hinting at you to take reckless risks. Brokers, media, KOLs—they all hype stories of "getting rich overnight." Why? Because the more you trade, the more commissions they earn. The market's incentive mechanism is designed to encourage your failure.

**How can you truly succeed?**

Turn compound interest from an ideal into a daily habit. Spend 10 minutes each day reviewing your trades—not to chase excitement, but to honestly ask yourself: What did I do right today? What did I do wrong? What will I improve tomorrow? It sounds simple, but sticking to it is hard.

Don’t rely solely on willpower; establish mechanical rules. For example, sell 10% when profits exceed 20%, and cut losses at 5% without hesitation. Rules treat everyone equally; no matter how cunning your brain is, it must obey.

Diversification is also essential. Keep any single asset below 5% of your portfolio. Even if one coin crashes, it won't threaten your core holdings. This isn't conservatism—it's survival wisdom for longer-term living.

Finally, find a community where members can hold each other accountable. Whether it's a group, mentor, or trading team—being in a group makes people more rational (or at least more constrained), helping to hedge cognitive biases and moments of greed.

Those who succeed with compound interest didn't rely on one big gamble; they practiced restraint year after year. It sounds easy in theory, but living it requires a relentless fight against yourself and human nature.