Mats problem is that he is stuck on the idea that the only right way to make money is to daytrade. Realizing that he sucks at it, he doubles down and loses even harder.
Meanwhile I just made a hundred bucks in two minutes by buying on localbitcoins and immediately reselling on kraken. There are plenty of ways to make things work for the open minded.
I think that you are correct. There is a kind of mindset that wants to keep doubling down and leveraging, and even when those kinds of folks might have periods of rationality and logic, they let a kind of greed - or gambling or rolling the dice - take over their actions.. and periodically they win really big, but in the long run, the odds catch up with them and they are constantly attempting to dig themselves out of holes.
So we should continuously attempt to caution folks against this kind of approach, because it is dangerous - and even if they have won BIG TIME in the past, they gotta consider better long term approaches that may not make as much money but help to set themselves up for longer term profits and/or financial security.
From time to time, I have some of those kinds of Local bitcoin (or direct) trades that cause me to experience an immediate $100 or more locked profit, and sometimes it can take quite a while to put sufficient systems in place (having money in a multitude of places and floating the money) to be able to lock in those levels of instant profits, and really, the practice of profits may begin with much lower levels of profits and just getting used to locking them in on a regular basis. I frequently have trades that only have $1 or so profits, but sometimes, they will run a streak and I get locked in profits from a multitude of small profits, but having the smaller profit locking in system in place allows for the taking advantage situations and opportunities for larger profit trades, without putting a large portion of the principle at risk.
Bitcoin is tiny in my country, and particular location. Very few customers. But they tend to be big ones, compared to money tossed around in the normal day to day life. Long term, this is good for me because I'm the only one in my city actively advertising. Right now it's all about getting as many customers as possible so I can one day live off it.
I have noticed that dynamic too, that there are some geographical areas in which the BTC price differences are considerable, and so we may be making slightly different points.
I agree with you that you should attempt to take advantage of your profitable BTC trading opportunities while they last and maybe before too much competition comes into your area.
I, personally, am in an area that already has a lot of local bitcoin traders, and so the premiums on BTC trading are not as large, yet I have honed a few seemingly "loyal" local bitcoin customers on both the selling and buying side.
Yet, part of my earlier point remains that even if some of the BTC trade related profits may not be large, sometimes it is much more prudent and practical to lock in the BTC related trade profits right away, rather than attempting to gamble for larger profits (and then potentially lose it all or have to take a smaller profit level due to having had gambled too much).
Sure, some degree of leverage or margin or gambling of principle may be practical in some circumstances and for some persons and their circumstances, but it remains dangerous to leverage or to gamble with large portions of your profits and principle on a regular basis but instead have a plan that continuously locks in profits and maybe just gambles with a small percentage of the proceeds of the overall trading portfolio.
For some folks, they may be comfortable gambling or leveraging with larger amounts of their portfolio (such as 50%), but frequently, it will be prudent to leverage or gamble smaller portions of the overall trading portfolio (whether principle or profits), such as 20% or less - and maybe even less than 5% can still be prudent, profitable while safeguarding and leveraging and gambling smaller parts of a person's BTC-related holdings (and striving not to become too greedy).