How do you (not) fail as a trader? (Part Two) for BINANCE: BTCUSDT by Daveatt – Technische Analysis – 2022-11-03 23:57:34

hello merchant,

Everything below is based on my preferences, I do not make financial recommendations and have nothing to sell you with this article.
I am sharing the content because I see a lot of traders going bankrupt and I don’t want you to be one of them.

Today I would like to share with you the second part of the frameworks that I have been using for the past 10 years.
I learned it from the same legend, Charlie Munger, co-founder of Berkshire Hathaway What not to do to get away from failure and poverty.

You can find the first part that was shared yesterday below

i) Overuse of your income

Once I reach a certain level of net worth, I still haven’t spent much.

I didn’t actually spend much on my entry from trading, I just keep stocking up as much as I can not buy Fine Stuff, I don’t get a table when I go to the nightclub.
I spend just under 3% of what I earn each month – it makes me feel free because that’s more money than I could possibly need.
And the …. This is how wealth is accumulated. I don’t even live frugally… I go to the restaurant every day… I buy things that I need and love…

But … if you want to fail, you should definitely spend more than your income.

b) Only learn from your mistakes

To fail, do not learn from the mistakes of others, and do not learn from the success of others.
There are plenty of free resources for learning the basics of psychology, trading, and self-mastery.

There are also some reliable and trustworthy traders who sell courses and share how they became successful.

Share their trading method, opinions, etc…

Knowing how to recognize and listen to them is key.

To stay poor, don’t learn from other successful traders.

III) quit early

If you want to fail and be unhappy, you definitely want to quit smoking soon, quit early.

Because, no matter who you are, you will fail many times.

Remember that my profits are between 50/60% 🙂
Half of my trades are failures that are necessary for me to make gains.

If you stop shopping too soon, this is a guarantee that you will not be happy for long.

Don’t put yourself in a situation where your trading capital has inflated and you can’t trade anymore… forcing you to stop…

Stay in the game, with baby’s little changes and take a lot of them over a very long period of time…

This is the only way to learn overtime

iv) Negative perception

Take something very negative and imagine it happening a thousand times in a row.

How do you feel the 1,000th time this happens?

Exactly… you won’t feel a thing

If you feel this way after a thousand times… you may feel this way after the first time…

This framework of thinking has been very powerful to me.

This is exactly why you have to trade so much and you have so many losers in your “skeleton closet”

Insensitivity to losses is a skill that can only be acquired after hundreds/thousands of failed trades.

And believe me, I have hundreds of such losers every month…

They no longer affect me… they are a necessary “evil”

c) Expect the best result only

If you want to fail in trading then you should definitely follow the traders who only post results/winning trades.

Definitely never think about placing a hard stop loss or exit.

Definitely don’t think about your own risks

Six) expect the worst

I come back from the previous point and share how I approach trading.

If you are new to your trading journey, Expect every day that you will lose some of your money.
This will become your main reality

If I’m making money, then I’m profitable…that’s just a bonus…. It’s a surprise… it’s just a happy coincidence.

But I expect that I will lose on every trading session.

This thinking framework has been very useful to me.

If I were to trade with this mindset, I wouldn’t be surprised or impressed when I lose some capital and feel that way because it is in line with the expectations I have in my mind.

thank you for reading
I will continue to include some articles like this every week because it helps me clarify my ideas and giving back to the community makes me feel good about myself in some way.

Dave

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