That is the market wisdom from many wise people. The trouble is many of the 'wise men' never traded. Worse, they actually traded and now they 'teach' a YouTube course in trading that will 'guarantee' you 100% profit in a month, every month! Till you buy an island off the coast of Bahamas, that is!! Did it ever occur to you, if their 'trading strategy', that they are peddling for whatever money, is so successful why do they actually have to sell a course on YouTube for peanuts? You know, some of them, actually thought of an answer to that question and they will tell you. "We do that for the greater good, to provide a service to mankind, to pay-it-forward!" Seriously?! Why are you charging a fee then? Usually there is silence after that.
To all those "professional traders" who are selling a trading plan over the internet, and to you who are considering to buy them to change your life, here is my free advice:
"Everybody has a plan until they get punched in the face."..... Mike Tyson
That quote above is by someone who had a lot of experience punching people, and he knew a lot about punching get getting punched too! So Trust Mike Please! Above is a video from several Mike Tyson's Knockouts. Its a short vid and I recommend watching it. You will see that several of Mike's victims were 6 inches to 1 ft taller than Mike. In boxing that's a big deal, as taller folks typically have longer reach, longer legs too. So can be both an offensive and defensive advantage. But Mike was just so much faster! Do you think Mike was thinking about plan as he was knocking people out under 40 seconds? I don't think so!
It is okay to plan. I made plans for my trades sometimes before the trading day. But definitely not during the trade. While trading it is instinctive. If I had a plan I just execute it. There is no time for thinking during day trading a fast moving market! If you do that, you will get punched in the face. Let me tell you, on the other side of the monitors there are many Iron Mikes waiting to punch you in the face! Trading is a zero-sum game. For every winner there are losers, and vice-versa.
Let me explain something obvious, but still people don't get it!
If you have $20K in trading capital and you lose 50%, you now have $10K. How much do you have to gain to get to $20K? Not 50% but 100%!
If you favorite crypto token which was $100, suddenly drops to $1, after a 99% decline, then your losses are 99%. The next day by whatever means if that token rallies 99%, you don't get to $100, you get to $1.99 :)
Do you get it? Lots of people don't. Some of them are 'smart' in real-life. They hold the token. The use the moronic word 'hodl' and think that's cool. They think it will come back. No it won't!
So the only advice I can give you regarding trading and capital management:
don’t fall into a hole
| UST | Luna |
|---|---|
Disclaimer: This is NOT professional advice, this is all just my own opinion and experience. I am NOT a Certified Financial Adviser. Consult professionals for any financial, accounting or legal related questions you have.
Charts are created in Tradingview.com, which is a free service.
