According to @QCompounding, John Bogle argues that the most reliable way to build wealth is to own the market through low-cost index funds rather than trying to beat it, as outlined in The Little Book of Common Sense Investing (source: @QCompounding; John C. Bogle, The Little Book of Common Sense Investing). Bogle emphasizes that investor net returns equal market returns minus fees, taxes, and trading costs, so minimizing expense ratios and turnover is critical for compounding (source: John C. Bogle, The Little Book of Common Sense Investing). Long-horizon scorecards show most active funds underperform their benchmarks, reinforcing a passive, buy-and-hold approach for superior odds of success (source: S&P Dow Jones Indices, SPIVA U.S. Scorecard 2024). For traders, this translates into prioritizing broad-market exposure, low fees, automated contributions, and scheduled rebalancing over frequent stock picking or market timing (source: John C. Bogle, The Little Book of Common Sense Investing). The arithmetic of active management indicates the same pre-cost zero-sum and post-cost negative-sum dynamics across asset classes, a principle investors also apply to digital assets when index-like products are available (source: William F. Sharpe, The Arithmetic of Active Management, 1991).

According to Compounding Quality (@QCompounding) referencing John Bogle, traders should be prepared for potential 20% losses in the stock market, as market volatility is inherent (source: Compounding Quality, Twitter, June 18, 2025). This reminder is especially relevant for crypto traders, as similar market volatility can be observed in cryptocurrencies like BTC and ETH. Traders are advised to maintain robust risk management strategies to navigate both stock and crypto market swings.

According to John Bogle, as cited by @Bogleheads, effective risk management is essential for traders, with a 20% market loss being a normal occurrence. This principle is especially relevant for cryptocurrency investors, where volatility often exceeds traditional stock market swings. Traders should assess their risk tolerance and implement stop-loss strategies to protect capital during market downturns, as highlighted by Bogle's investment philosophy (source: @Bogleheads).