BTC - A failed trader's thoughts and lessons
No TA today. Not that I have any to provide at this point. The chart is just a placeholder.
I am glad that I have now lost almost all the capital I invested in crypto. It was a fun ride with many ups (starting out, getting lucky and making 100% on my first week, imagine how nice that felt) and many downs (letting myself get liquidated for a significant amount because of inability to control emotions and accept failure).
Losing and failure wasn't something I had to deal with for most of my life until recently, and I am not talking about crypto at all. I am talking about more significant academic and social goals that I failed to meet, even though I gave it my best. My best was good enough, ought to have been, always had been up until that point. And then I realized, some things are out of your control no matter what you do.
So I came to the realization that the past does not matter. You cannot change the past. But you can learn from your mistakes, something I kept ignoring. From now on, emotions are not going to rule me. No more giving into the hype or the fear, no more listening to anyone but myself and the close circle of people I trust. All outside pressure will be ignored and I will stick to my plan. What is that plan, you may ask. Here it is:
One: Secure at least 10000USD in capital
Two: Only risk 5-8% at a time, in this case 500-800USD
Three: Minimize use of leverage. 3-5x at most, only on sure plays.
Four: Take profit at 10-25%. Judge based on charts and indicators. Be content with less profits as opposed to holding out and losing/breaking even at the end.
Five: Never stay with a losing trade. You lost 15% or more? Close it.
Six and last: Remember your plan. A marathon, NOT a sprint. I will be a millionaire, does it really make a difference if it takes me 2 more years? This capital does not pay the bills anyways.
So why am I writing all this? Truth be told as a reminder to myself, I don't care for other traders and I know they will do whatever they want no matter what some stranger says on the internet, and rightfully so. But if it can help at least one of you guys, so be it, I will be happy to see it.
To quote Carl Friedrich Gauss: I have had my results for a long time: but I do not yet know how I am to arrive at them. Well, now I might know how.
I am glad that I have now lost almost all the capital I invested in crypto. It was a fun ride with many ups (starting out, getting lucky and making 100% on my first week, imagine how nice that felt) and many downs (letting myself get liquidated for a significant amount because of inability to control emotions and accept failure).
Losing and failure wasn't something I had to deal with for most of my life until recently, and I am not talking about crypto at all. I am talking about more significant academic and social goals that I failed to meet, even though I gave it my best. My best was good enough, ought to have been, always had been up until that point. And then I realized, some things are out of your control no matter what you do.
So I came to the realization that the past does not matter. You cannot change the past. But you can learn from your mistakes, something I kept ignoring. From now on, emotions are not going to rule me. No more giving into the hype or the fear, no more listening to anyone but myself and the close circle of people I trust. All outside pressure will be ignored and I will stick to my plan. What is that plan, you may ask. Here it is:
One: Secure at least 10000USD in capital
Two: Only risk 5-8% at a time, in this case 500-800USD
Three: Minimize use of leverage. 3-5x at most, only on sure plays.
Four: Take profit at 10-25%. Judge based on charts and indicators. Be content with less profits as opposed to holding out and losing/breaking even at the end.
Five: Never stay with a losing trade. You lost 15% or more? Close it.
Six and last: Remember your plan. A marathon, NOT a sprint. I will be a millionaire, does it really make a difference if it takes me 2 more years? This capital does not pay the bills anyways.
So why am I writing all this? Truth be told as a reminder to myself, I don't care for other traders and I know they will do whatever they want no matter what some stranger says on the internet, and rightfully so. But if it can help at least one of you guys, so be it, I will be happy to see it.
To quote Carl Friedrich Gauss: I have had my results for a long time: but I do not yet know how I am to arrive at them. Well, now I might know how.