Trading is seriously one of the hardest things I have done, aside from having to figure out how to please people, that's another extremely hard thing to figure out. That's at least why I like trading more than other business models at this point, no people to please other than yourself. But even then, success doesn't come without some crazy hard lessons, like big liquidations with Bitcoin and really the entire free world market collapses, but what else could you expect from US election day (the day of writing this post and losing half of my trading account)...
But regardless of the day, trading is the most difficult and challenging businesses I have attempted. It's a hard game, but the game isn't getting easier, so you have to figure out if you are going to keep at it and get better, or just give it up altogether. Just like a video game, as you go further in the game, the levels get harder, so you need to become a better player!
Learning Lessons From Losses
If you haven't figured it out yet, these posts are really a sort of trade journal in that I like to reflect on my mistakes and successes and figure out either what went wrong, what went my way, and how I can get better on both accounts.
I hate losing money, especially when times are tough as they are and you are basically relying on it as an income. One of the biggest lessons I learned today is that after a good win, instead of jumping back in to try and get more, sit back and look and see how the markets are reacting to those levels and figure out your best entry.
I was able to catch a nice bounce to the upside for a nice gain running 20x leverage, thinking I could play with the big boys over my normal 10x that I run. At higher leverage, the gains are much higher with smaller moves, but also the losses are much bigger as well.
This is one thing that I am really working on trying to figure out. I normally run with a really tight stop loss, but in this case I was running wild in the wind with no stop set. I was going to be my own stop. Well. after the win, I got a bit too confident, went back in on another long and got my butt trapped almost immediately after.
Risk management is the make or break for traders above anything else. I know that and I broke my rules on it. So I have to pay the consequences which is sitting out for a bit and working some other hustles to make my money back, not to mention the markets are just un-tradable at the moment, so going to let things cool down a bit. This gives me time to reflect on what I did wrong and to just get my mind off the loss.
Keep Moving Forward
Even the best traders will tell you they are not there yet. They still have things to improve on. So why should you be any different? It's just like a video game, most of the time you have to lose all of your lives to figure out how to come back and beat the level next time. And then guess what, the next level and boss are even harder than the previous levels.
It's also the type of thing that you can't go back. Doc Brown and Marty McFly are not going to magically show up in the Delorian and take you back so you can change your trade. Doesn't happen that way. So you have to just take the lessons that you learned, hopefully, you do that, and keep moving forward to the next trade.
Be The Best YOU Can Be
Sure it's great to have goals and try to aspire to what other traders are doing. But guess what, you are not them. They are a completely different game player than you are. They have different skills and strategies that work for them because they have learned it on their journey through the game levels.
As you level up, you will keep adding tools to your toolbox, so that when you get to the boss level, which in my case today was a liquidation below 18K, you have to figure out the weaknesses in the market and the best way to attack them and extract the most money you can!
There are always bigger players. Once you realize that and learn that the market is not going to move just because you entered a trade one way, the better off you are going to be. As a smaller player, it's best to ride the coat tails of the bigger players, learning their moves along the way and scooping up the points that they leave behind. Once you have gotten far enough through the game and acquired the points and skills needed to be a bigger player, then you will have other traders riding your waves!
It just takes one step at a time and one day at at time!
Until next time traders...
Be Cool, Be Real, and always Abide!
Nothing said is financial advice.
This is for educational and recreational purposes only!
Stay safe in these volatile markets and don’t get rekt!
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