Initial investment + profits = Bigger investment = Bigger profits but always think that you will really be missing out on making profits in short time but you know that you are really sacrificing it for the sake of bigger profits later on.
They ignore the risk from loss that is taken from percent of the capital they invest.
Initial capital: $1000 so 50% loss will be $500.
Initial capital $1000 + profit $2000. Then if they reinvest all $3000, 50% loss will be $1500. If the loss is 80%, it will be $2400 and they will have only $600 left. It will be 40 % loss from initial capital.