Dumb Money Lessons - How to Read the Future
Where you been
I've been spending the past few months trying to get some idea if I can figure out how to become the next George Soros. The easy answer to the question is an empathetic, NO!
It is really hard managing money as a big-time hedge fund manager. With the combination of naivete and greed, it can only lead you down the road of ruin. Case in point, The EUR/USD short trade. I was absolutely right that the Dollar was going to increase over the Euro. I was so right that I extracted $800.00 in unrealized profit from this trade. You should have seen me strutting round the house, saying to the wife, "Who's your Daddy!"
Within three days I'm getting a margin call on the account. "Who's your Daddy", is right. It seems that the market is my daddy. Up $800 - down $2000. All because I knew I was right. I started piling on my position. It would go against me. Doesn't matter, put some more on. Start going in your direction, put some more on. I wake up at three in the morning and check my position, lo and behold I'm just 0.0001 of a BTC away from a margin call. I have a choice, let it go to margin call or put some more BTC into the account. I believe I made the correct decision by letting it go to margin call.
BTW, the wife told me after I confessed to losing two thousand dollars she used to think I was an idiot, now she knows I am. "We could of spent that money on something we could use for the house."
Lessons
Letting your ego make your trading decisions is pretty dumb. You have to be able to accept that you are right, just not at this time. Take your profits and look for another trade. Or if the trade is going against you and you like the trade, then get really small until you are right.
Present Trade Theme
Because of the increase in value of crypto, including Steem, I've more than made up that lost money. With the futures market coming, on-line I figure it might be a pretty good binary event. Instead of directly trading this event, I've gotten into cash and other cryptos. My thesis is that if BTC drops in price then us crypto-savvy investors are going to be moving into other cryptos. If BTC keeps shooting for the moon it will bring new players to the crypto world. As we all know the crypto space isn't all about BTC.
Sorry that you got screwed up that trade. I personally hate shorts "not the people who do them" just the trade in general. I don't like margin calls to much pressure on my body. I can only handle trading what is already mine. If I lose I lose. Hopefully your futures trades will go better or you can get out faster
As I tell my wife, it is the price you have to pay. In order to learn this sometimes you are going to make a mistake. In this instance, I knew what the market was going to do. So how could I lose? well the market showed me. Going forward, I will make sure my ego doesn't drive my investment decisions.
Yes it seems we always have to learn from mistakes. The ego is difficult to fight sometimes so hopefully it doesn't take over again on a future trade lol. At least it was only $2000 I've read of people losing their houses on margin calls.
The wife is okay when I play $10 on Powerball lottery. Is that what they call playing with the house's money ;)
Hahaha 😂