The Second Greatest Trader Flaw


(note: It was suggested by a quite esteemed University that this section could be made a more obvious "preface" or "foreword" to the main topic. Ok)

You can skip this section on FOMO if you know what it is.
FOMO, or Fear of Missing Out is hands down the number one creator of poor people. People that turn their 100 dollars worth of bitcoin into... 40 dollars in days. Because they aren't patient. They get afraid. That fear compounds, then they fuck everything up. Buy on peaks. Sell on floors. Get out of a coin that hasn't made them money yet, to get into a coin that's going "to the moon!" that instead crashes hard immediately after they buy that peak. It's just that devastating a trading flaw. It's so bad, it's why I say just IGNORE sells that don't sell. And that they will sell eventually. THAT is ten times better than FOMO. And besides, it's another one that over time you'll learn how to deal with naturally. I won't have to tell you. So telling you to just ignore it now is sound advice that you will improve on later. Now enough about the worst trading flaw.

The Second Worst Is Lying to yourself.

If you lie to yourself, you'll lie to other people. But it will be worse because you'll believe what you are saying. You have to trust the data. If you don't, get more data. There's always more. 




One of the main reasons "sane traders", as I call them, make money consistently is because of other types of traders. The lazy ones. They watched Wolf of Wall Street 10 times and "got this shit". And yes, they might own a fedora or two. They use words like "Whales" to describe someone trading, a few bitcoin. Oh, and lots of Jerry McGuire. They are in love with the idea of being a trader. Just not the learning how to do it right part. They "got this shit", remember? Worse, it's also a lot of teenagers. Yes, you will be taking lunch money from high school kids sometimes. If it makes you feel any better (as an older person) remember you didn't have WiFi or prescription marijuana growing up like they do. To the young people, thanks!




Now, that's the worst case example of lying to yourself. But it doesn't have to be that bad. Don't fall in love with a coin. I almost fell in love with Nem. But then I remembered, it's a fucking coin. Right? It's money. Not my girlfriend. I'm making towards my goal. You can't let emotions creep in. 




And man, can you see it. I can tell by the way someone uses Litecoin in a sentence if they are holding it. You learn how to pick up on these things. Don't play favorites. However, if a coin keeps giving you shit, ignore it. There are plenty of other coins. I am a firm believer in not fucking yourself. If you have a flinch with a coin, just ignore it. Unless you've ignored them all. Then start over!

But Wait,


I figure I fucked ya by sneaking in a FOMO recap already. I might as well just include the Third Worst now.

NOT TAKING ME SERIOUSLY ON DIVERSIFICATION

That will put you in a situation where you are sitting around with your hands under your ass. Because you'll have a big bag at some point. And it will be profit timeout for days. Weeks if you fuck up bad enough. And that's how you lose money. When you give in. "I'll just sell it" because that's the moment it decides to rise every single time. But if it was only 1/10th of an amount you could afford to risk, and 7 of those bets paid off, or even ONE, you get to keep playing. Which means you get to keep growing. Diversification matters. But hey, if you are extremely lucky, and you can place two big bets and have one pay off every time, Go for it. I'm not. I honestly do not believe in true luck. I believe in seeing the data.

And if you can avoid all three? You'll probably just make money. Which rocks really.

(note: There's now a neat little backstory here. Apparently my advice is considered a very easy delivery for something that's typically a bitch to teach. And it's being shared. So I keep being given advice on how to make it more logical. And I ADORE that. That's how I function. So thanks. You'll see meaningful things appear. Some already have. I truly appreciate what I consider a huge complement.

S)


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