Post
Topic
Board Economics
Re: When the tide goes out
by
deisik
on 05/01/2019, 10:59:39 UTC
It looks like you don't make a living off crypto

And more specifically, cryptotrading, since otherwise you would soon be broke. The first rule of a successful trader is not to marry an asset, however personally attractive it might look or feel. Well, maybe it's not the first rule actually, but it is the one which you should invariably follow with your skin being in the game

Marrying an asset isn't a problem. As long as you're comfortable trading both long and short and you can use leverage to account for lacking volatility, you'll do fine.

The downfall of traders is when they marry a trade or forecast. A lot of traders get tunnel vision and refuse to admit when they're wrong. This leads to letting losses run and other emotional mistakes. Successful traders never get attached to trades. They exit when their stop losses are hit and react to changing market conditions.

It looks like there's a misunderstanding

What you refer to by marrying a trade, I consider marrying an asset. It happens when an asset earned you decent profits in the past and you get glued to it (marry it) by holding it despite the fact that it now brings you only losses and it should have been disposed of long ago. Buying and selling an asset as market dictates has nothing to do with this. Really, how can you possibly be considered a truly married man if you are ready to get rid of your wife as soon as she has her period started (and get back to her when it's over)?