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The second of the three bankruptcy pitfalls — stubbornly holding on without cutting losses. In the process of investment trading, we often find that after buying and incurring losses, as long as we don't sell, most of the time we stubbornly hold on, and all the losses eventually recover. So we develop this strategy of stubbornly holding on without cutting losses. Although most of the time we manage to recover, when some rare extreme market events occur, we find that we cannot bear the consequences. One of our three bankruptcy pitfalls is going against the trend, which is the real cause of our losses. However, if we add stubbornly holding on without cutting losses, our success rate appears higher because we manage to recover from mistakes. But when a major downtrend comes, although this probability is relatively low, when it happens, we find that stubbornly holding on while going against the trend causes our losses to become unlimited. When our principal is reduced to a very small proportion, to break even we need to multiply our capital several times, but the market does not offer that many big opportunities. Therefore, stubbornly holding on without cutting losses creates a very difficult predicament for us to recover our capital.