17 things i wish i knew when i started trading:
- anyone selling you a trading course is lying to you. great traders make money trading, not from selling webinars.
- understand the difference between investments and trades. investments are made without a sell target. trades are made with targets.
- to determine if something is an investment or a trade, ask yourself if you could stomach a 50% drawdown. if the answer is no, it's a trade.
- most investments should be entered via dollar cost averages. most trades should be entered via limit orders.**
- the right number of crypto investments you should have is probably 3-5.
- the right number of crypto trades to have on at the same time is probably 2-10.
- read the book “trading in the zone” as soon as possible. it focuses largely on the psychological aspects of trading, which just happen to be the most important aspects.
- the market gives new opportunities literally every day. overtrading is the #
1# cause of bad returns for half-decent traders. don't force it.
- don’t buy vamps or derivative tokens until you really know what you’re doing. you will lose money.
- if
@akshaybd tells you to buy something, just fucking buy it. (learned this one the hard way)
- liquidity matters. owning $50k of a token with $50k in liquidity means you own much less than $50k of that token.
- seek out safe yield aggressively. keep idle stables in yield bearing stablecoins to juice your returns.**
- sell investments when your mental model of the world is changed. sell trades anytime.
- "no one ever went broke taking profits" should be tattooed on your forearm. it is the only cure to the inevitable greed that will otherwise ruin you.
- if you can’t go a few hours without checking a trade, you’ve made the trade too big. reduce your size until you can go 6 hours without looking at it.
- keep 10% of your crypto portfolio in a separate degen wallet. use it to get all the gambling out of your system. give yourself permission to lose it all, as long as you don’t fuck up the 90%.**
- trailing stop losses protect you from trades going south on you. smart traders use them for a reason.**
** means you can do it on
@jupiterexchange
what else did I miss?