[Steem talk] Types of currency trader
Source from Pixabay
Nobody knows where the market goes. For whatever reason some of the speculators made a huge profit, that's what skills coupled with luck and probably religiously believe God allow the success, even that doesn't guarantee long term. I believe there's a way of success, but there is no short cut to get there, other than trying to understand the rules of investment and be discipline on it, keep the persistence and be prosper. Let's take a look at several type of self claimed successful trader, I mean all of them is myself over different age.
A trader that is so young, so successful, as if he can cover the whole sky with one hand(apologize on the Chinese old saying, meaning arrogant young punk). You see, many people doesn't really understand the risk of leveraging, and got confused between investment and speculation. And usually, people who understand risk of speculation, they would rather stick with investment. And those who have almost nothing left in the bank account, they don't mind speculate because the high risk and lucrative return. Which is why, these newbie are most if not all entitled to have some success in the early age, and probably lose them all later date. I was one of them, having a very unique opportunity and made a small fortune that allows me to bought a BMW with cash when I was 21.
Holy grail bearer
A trader that has several past bad experience, and now has the holy grail(atleast that's what they proclaimed themselves as the last crusader). I lost my BMW in very short time, less than a year. For whatever I have earned in my early days of trading, they all started to donate back to the market, bit by bit without me realizing I'm digging a bigger and bigger hole for myself. I still believe I have the holy grail. Not only I believe my strategy will work, I start to learn more programming skill to develop my own visual indicator so I can trade with them. I start to look in to selling courses, selling indicators, selling signals, and oftenly gotten asked if this shit is so powerful why sell? I don't have the license to solicit funds, but who cares if it's your family's money, and you trade on behalf of your daddy. And who say daddy give allowance to son is profit sharing? So once again, one can never sell an indicator. All visual indicator on the chart screens are curve fitted monsters. They are the result of the past, and we're there to study the pattern and believe history will repeat by itself. Unfortunately, there's just too many parameters. If the history tells you convergence, there's a chance the current price will shoot up. Wait, it's the dollar shoot up or the BTC shoot up? If it is USD/BTC shoot up? How far it can go? Where is the exit strategy? What if it doesn't shoot? Can we liquidate. If we force sell it, how much will we lose?
Finally, I'm at this stage now and don't even bother to argue. If I hear some funny conversation that people teaching two moving averages crossing each other and start to go long or go short, I will be so glad because they had to lose money in order for me to gain. At this stage, nothing else matter other than family and friends. Most of the trade I executed are in the consideration of how much I can afford to lose. Exit strategy based on past average trading range, breakout speed, how much the current strong move had committed and how can we capitalized and get out on time. All that are in the trading plan in my mind. After 21 years, finally I realized, it's the man in the mirror(since @mineopoly talked about it today).
In the end, it's not the plan that works, it's not the knowledge we have, and rest assured it's not because of the technical indicator alone that helps us made a good decision. In the end, it's risk appetite. The way we structure our trading plan should always focus in money management. Don't think about how much we can possibly earn. Think about what can we do to recover the loss if we're in a losing streak. What can we do to stop bleeding. It's all about money management skill, has nothing to do with your information from the market. If I tell you BTC tomorrow will go back to 20k, the BTC you bought at 19k for almost 2 years now, will you park your order at 20k? I bet my bottom dollars, you'll probably put a new bid price of way more than 20k, 25k may be? Regardless which type of a trader are you, if you really read until this stage, you're not as successful as you think. The real successful trader doesn't even bother to show you how good they are. They don't need a huge bank account to avoid tax. The best part is, they can anytime go to the market, grab a deal and sell it profitably. Money is nothing to a profitable trader, anytime they need money, they go to the market and "print".