How my strategy could have saved people on a huge short squeeze
Hey everyone, YoungShkreli here
Every now and again, I reflect on my trades and see if I can pull something from my past that will help you all in the future. So gather around the campfire, have some smores, papa Shkreli is going to tell you all a story.
The date is April 11th 2018. Tomorrow, there will be one of the biggest, if not the biggest, short squeezes in Bitcoin history. Everyone is bearish and just the day before, so was I. I thought that was the move that was going to take us down to $5,000 (I've been waiting to hit this number since December 2017). My feeling was that bitcoin was going to do it, it was going to hit $5,000 and I was going to increase my bitcoin stack by a ton. However, the ashi closed green after a long bear move and a low RSI reading, so instead of shorting like the rest, I went and bought bitcoin (unfortunately, I wasn't wise enough to go 1000000x long). Let's recap, my feelings were telling me to short, but my strategy was telling me to long. Which did I listen to? My STRATEGY.
Guys, this is not an article about how you have to be contrarian (although you should be), this is an article about sticking to the strategy that you know works. I can't stress this enough. A good trader is not someone who can guess where the market is going all the time (no one can, no one is a wizard). A good trader is one who has developed a winning strategy, controls risk, and knows when he is wrong. You can be wrong MOST OF THE TIME and still make a TON of money. Before I adopted my most recent strategy (which is levels above what I have used before and seen here or anywhere), I had the other two things and that was good enough for me. I remember during one bad run of luck, I got 8 TRADES IN A ROW incorrectly. That said, on each one of them, I controlled the loss so that they were all small. When I got to the ninth trade, I was right and I was right big. I was right so big that it cancelled out the previous losing trades by a cool 8%. If you are trading a big account, 8% is a big deal.
SUMMARY:
Trading is not about knowing where the market is going, you can't possibly know that. Trading is about being emotionless and being willing to be wrong, controlling risk, and hopefully always finding ways to make your strategy better.
If you liked this post, please like my work and follow me. It will help both of us: I can only really help people in a big way when I'm on the top trader list - I will sell software, strategies, write more etc. as well as continue to provide free material.
Notice that in addition to selling things for money, I will always provide a TON of free material until I die, why? Because I am only where I am today as the result of other people teaching me things for free. If it weren't for free resources online about bitcoin and trading, I would not have done that well for myself. Trading has changed my entire life because trading bitcoin got me into learning fundamental analysis for stocks, which got me reading finance books, which got me reading any type of book, which taught me skills, which got me into entrepreneurship etc. I don't care about money, I care about being successful and helping people. That is what life is about: taking care of yourself and those who support you.
Stay humble guys, we all stand on the shoulders of giants :')
-YoungShkreli
P.S. I already know what my next educational post is going to be about. I love trading, you guys. hint: it's going to be about code I wrote and Ray Dalio
Every now and again, I reflect on my trades and see if I can pull something from my past that will help you all in the future. So gather around the campfire, have some smores, papa Shkreli is going to tell you all a story.
The date is April 11th 2018. Tomorrow, there will be one of the biggest, if not the biggest, short squeezes in Bitcoin history. Everyone is bearish and just the day before, so was I. I thought that was the move that was going to take us down to $5,000 (I've been waiting to hit this number since December 2017). My feeling was that bitcoin was going to do it, it was going to hit $5,000 and I was going to increase my bitcoin stack by a ton. However, the ashi closed green after a long bear move and a low RSI reading, so instead of shorting like the rest, I went and bought bitcoin (unfortunately, I wasn't wise enough to go 1000000x long). Let's recap, my feelings were telling me to short, but my strategy was telling me to long. Which did I listen to? My STRATEGY.
Guys, this is not an article about how you have to be contrarian (although you should be), this is an article about sticking to the strategy that you know works. I can't stress this enough. A good trader is not someone who can guess where the market is going all the time (no one can, no one is a wizard). A good trader is one who has developed a winning strategy, controls risk, and knows when he is wrong. You can be wrong MOST OF THE TIME and still make a TON of money. Before I adopted my most recent strategy (which is levels above what I have used before and seen here or anywhere), I had the other two things and that was good enough for me. I remember during one bad run of luck, I got 8 TRADES IN A ROW incorrectly. That said, on each one of them, I controlled the loss so that they were all small. When I got to the ninth trade, I was right and I was right big. I was right so big that it cancelled out the previous losing trades by a cool 8%. If you are trading a big account, 8% is a big deal.
SUMMARY:
Trading is not about knowing where the market is going, you can't possibly know that. Trading is about being emotionless and being willing to be wrong, controlling risk, and hopefully always finding ways to make your strategy better.
If you liked this post, please like my work and follow me. It will help both of us: I can only really help people in a big way when I'm on the top trader list - I will sell software, strategies, write more etc. as well as continue to provide free material.
Notice that in addition to selling things for money, I will always provide a TON of free material until I die, why? Because I am only where I am today as the result of other people teaching me things for free. If it weren't for free resources online about bitcoin and trading, I would not have done that well for myself. Trading has changed my entire life because trading bitcoin got me into learning fundamental analysis for stocks, which got me reading finance books, which got me reading any type of book, which taught me skills, which got me into entrepreneurship etc. I don't care about money, I care about being successful and helping people. That is what life is about: taking care of yourself and those who support you.
Stay humble guys, we all stand on the shoulders of giants :')
-YoungShkreli
P.S. I already know what my next educational post is going to be about. I love trading, you guys. hint: it's going to be about code I wrote and Ray Dalio