Don't listen too much to what I or anyone "thinks"
What's up guys,
I just want to share this chart with you and some perspective.
If you don't know, I started trading about two years ago. I was profitable for almost all of that time, not because I was good, but because I bought bitcoin below $1,400 and thankfully didn't cock it up too, too hard. That said, I don't think I was any good until about a year and six months in. That's when I started to make posts here.
Being a pretty novice trader, I have a lot to learn, but I have learned much still and always am eager to share what I've learned.
Here is some general advice...
1) Do not use very much money initially, ie don't invest more than you can afford to lose
2) Do not use leverage unless you understand it (you can lose all of your money and more shorting using traditional brokerages)
3) Do not worry about getting rich quick
4) Do learn all you can from better traders (buy their books, listen to their podcasts, follow them on twitter etc.)
5) Do not trade until you have backtested a profitable strategy
6) Do implement the profitable strategy into code
This post is especially dedicated to the last two (mostly 5) which in my opinion will take you from being unprofitable to profitable very quickly...
There is a lot of talk about managing emotions in trading. And, yes that is important, but it doesn't have to be if YOU yourself never trade. If you program a bot to do it for you, you never have to learn this at all really. Granted, you have to learn programming, but the payoff is really high to do so.
Personally, I didn't start with the last two. I really wish I had.
Number 5 is the big one. It's extremely obvious, yet I happen to know that over 90% of traders are not using a profitable strategy they have backtested. Backtesting by the way, is simply testing your strategy against past market conditions.
If you haven't created any SPECIFIC strategies that are profitable, then you need to do that now before you place another trade. I have shared this chart as an example of a strategy that has been extremely profitable over the course of the past two years and would be very easy to implement into code.
The moral of the story or the tl:dr is this:
Don't place trades based on what you THINK will happen, place trades based on a strategy that has a positive expected value.
Thanks for reading,
-YoungShkreli
I just want to share this chart with you and some perspective.
If you don't know, I started trading about two years ago. I was profitable for almost all of that time, not because I was good, but because I bought bitcoin below $1,400 and thankfully didn't cock it up too, too hard. That said, I don't think I was any good until about a year and six months in. That's when I started to make posts here.
Being a pretty novice trader, I have a lot to learn, but I have learned much still and always am eager to share what I've learned.
Here is some general advice...
1) Do not use very much money initially, ie don't invest more than you can afford to lose
2) Do not use leverage unless you understand it (you can lose all of your money and more shorting using traditional brokerages)
3) Do not worry about getting rich quick
4) Do learn all you can from better traders (buy their books, listen to their podcasts, follow them on twitter etc.)
5) Do not trade until you have backtested a profitable strategy
6) Do implement the profitable strategy into code
This post is especially dedicated to the last two (mostly 5) which in my opinion will take you from being unprofitable to profitable very quickly...
There is a lot of talk about managing emotions in trading. And, yes that is important, but it doesn't have to be if YOU yourself never trade. If you program a bot to do it for you, you never have to learn this at all really. Granted, you have to learn programming, but the payoff is really high to do so.
Personally, I didn't start with the last two. I really wish I had.
Number 5 is the big one. It's extremely obvious, yet I happen to know that over 90% of traders are not using a profitable strategy they have backtested. Backtesting by the way, is simply testing your strategy against past market conditions.
If you haven't created any SPECIFIC strategies that are profitable, then you need to do that now before you place another trade. I have shared this chart as an example of a strategy that has been extremely profitable over the course of the past two years and would be very easy to implement into code.
The moral of the story or the tl:dr is this:
Don't place trades based on what you THINK will happen, place trades based on a strategy that has a positive expected value.
Thanks for reading,
-YoungShkreli
Statistically, drawdown is a guarantee. Learn to get shat on with a shit-eating grin :D