Some people ask me how I'm able to take on a loss and continue trading.
Please allow me to share a discussion I recently had here on the forum.
A commenter recently mentioned the term supercycle with a high degree of certainty that it will play out.
This was my response,
"Dan Held began touting the supercycle theory in April 2021 when the market was beginning to top out. Guess who Dan Held represented at the time? Kraken exchange. It was undoubtedly Dan's job to bring in new "paper" into the market by hyping up the price. When new money enters, professional money exits. Professional money pays the media and propaganda to hype the market up so that new buyers can feed into professional sell orders taking profit. that's how it works. Don't buy into the BS propaganda. learn a systematic method based on statistics and probabilities. that how you win. that's how I'm able to do this for a living since last year. you will win some and you will lose some. when you lose, lose small. when you win, win big. that's how winning is done."
With that being said, how do you lose small and win big?
Many factors come into play. You can use them to your advantage.
Factors such as position size, leverage, risk/reward, account size, percent increase or decrease, and many more I cannot list in a single thought sequence, all come into play.
All of these moving parts will define your personal risk management. Everyone has different tolerance. It can take years to finally find yours.
I have been trading bitcoin and crypto since early 2017 and I finally found a grasp of risk management about a year ago.
Think of your losses as the cost of doing business. It can be expensive, but ultimately, you are in charge of your own money. You decide how much you can take before you finally throw in the towel. But ultimately, throwing in the towel means you have a 100% chance of losing in trading.
Solving the trading problem is not handled the same way we solve real world problems. In the real world, there are support networks everywhere for nearly anything. However, support networks for traders are difficult to come by. Why is that?
It's because very few people actually do it well enough to make it a living.
I hope this helps to encourage someone.
I wish everyone reading this the best with all God's blessings.
Please allow me to share a discussion I recently had here on the forum.
A commenter recently mentioned the term supercycle with a high degree of certainty that it will play out.
This was my response,
"Dan Held began touting the supercycle theory in April 2021 when the market was beginning to top out. Guess who Dan Held represented at the time? Kraken exchange. It was undoubtedly Dan's job to bring in new "paper" into the market by hyping up the price. When new money enters, professional money exits. Professional money pays the media and propaganda to hype the market up so that new buyers can feed into professional sell orders taking profit. that's how it works. Don't buy into the BS propaganda. learn a systematic method based on statistics and probabilities. that how you win. that's how I'm able to do this for a living since last year. you will win some and you will lose some. when you lose, lose small. when you win, win big. that's how winning is done."
With that being said, how do you lose small and win big?
Many factors come into play. You can use them to your advantage.
Factors such as position size, leverage, risk/reward, account size, percent increase or decrease, and many more I cannot list in a single thought sequence, all come into play.
All of these moving parts will define your personal risk management. Everyone has different tolerance. It can take years to finally find yours.
I have been trading bitcoin and crypto since early 2017 and I finally found a grasp of risk management about a year ago.
Think of your losses as the cost of doing business. It can be expensive, but ultimately, you are in charge of your own money. You decide how much you can take before you finally throw in the towel. But ultimately, throwing in the towel means you have a 100% chance of losing in trading.
Solving the trading problem is not handled the same way we solve real world problems. In the real world, there are support networks everywhere for nearly anything. However, support networks for traders are difficult to come by. Why is that?
It's because very few people actually do it well enough to make it a living.
I hope this helps to encourage someone.
I wish everyone reading this the best with all God's blessings.