There is an interesting phenomenon in stock trading: retail accounts below 500,000 yuan tend to incur losses in the long run, while large accounts above 10 million yuan are almost consistently profitable. This is not a coincidence; the underlying logic is actually quite simple.

An investment career almost always starts with small amounts of money. But there is a dividing point here—

If an investor keeps losing money, they tend to fall into fear, neither daring to add positions nor having the capacity to do so, and the account size remains at the 500,000 yuan level. Both psychology and funds are trapped.

On the other hand, what if they keep making money? Making money builds confidence. After each profit, investors dare to add positions, using larger amounts of capital to replicate successful strategies. One profit turns into two, two into sustained and stable gains. Funds grow like a snowball, eventually breaking through the ten-million-yuan level.

This is why large accounts almost never lose—they are the result of continuous profitability and accumulation. The reason small accounts find it hard to turn around is precisely because they lack that positive cycle from loss to profit, from small to large.