This newsletter is sponsored by Blockpit, the only platform that makes my life as a crypto trader easier. My trades were automatically imported after setup and displayed nicely. The tax report was quick and easy to create in the app. I can also track the performance of my assets in the app. With Blockpit, I no longer have to worry about realizing profits or losses in time. SIGN UP HERE and get a 10% discount, plus all past years starting in 2015 for FREE.As you can see above, I have switched tax software (I test about 3 of them a year). While they were kind enough to sponsor the newsletter, I told them that I could not allow that unless I was actually using it - which I now am. The software is great and it's time to start thinking about taxes. We will go far deeper into this next week.I have talked many times about the definition of a good and bad trade, but once again want to hammer this point home.The RESULT of a trade is irrelevant. Most beginning traders believe that a good trade is defined by the amount of profit secured. They view a bad trade as any trade where they take a loss.This is dangerous thinking for a trader.Remember, nobody can control what happens after a trade is entered - your money is in the hands of the market. The only thing you can control in the market is how much money you LOSE. Therefore, you must plan your losses on every single trade.A good trade is one where you execute your plan to perfection, regardless of the result. A bad trade is one where you violate your plan - even if it makes you money!Some of the best trades that I have ever taken were losses. How so? Because they were small losses on a trade that could have been catastrophic if I had stuck with it. There's no better feeling than stopping out of a trade right before price tanks for multiples of your realized loss. I'm sure this has happened to you. In the moment you are upset that you lost money, but then you see price continue down endlessly - this would have led to liquidation or years of bag holding. You saved your bankroll by taking a small loss according to plan. That's a GOOD TRADE.The success of a trader is determined over thousands of trades. You cannot judge your system on a few trades. All you can do is protect your capital with small losses over and over again to keep you in the game.Trade your plan and over time you will be rewarded.In This Issue:Bitcoin Thoughts And AnalysisAltcoin ChartsMicroStrategy Buys Another 29,646 BitcoinsThe SEC Is Suing RippleBitcoin Is In A Supply CrisisThe Wolf Of All Streets Podcast Ft. Dan HeldMy Recommended Platforms And Tools
The Wolf Den #141 - Good Vs. Bad Trades
The Wolf Den #141 - Good Vs. Bad Trades
The Wolf Den #141 - Good Vs. Bad Trades
This newsletter is sponsored by Blockpit, the only platform that makes my life as a crypto trader easier. My trades were automatically imported after setup and displayed nicely. The tax report was quick and easy to create in the app. I can also track the performance of my assets in the app. With Blockpit, I no longer have to worry about realizing profits or losses in time. SIGN UP HERE and get a 10% discount, plus all past years starting in 2015 for FREE.As you can see above, I have switched tax software (I test about 3 of them a year). While they were kind enough to sponsor the newsletter, I told them that I could not allow that unless I was actually using it - which I now am. The software is great and it's time to start thinking about taxes. We will go far deeper into this next week.I have talked many times about the definition of a good and bad trade, but once again want to hammer this point home.The RESULT of a trade is irrelevant. Most beginning traders believe that a good trade is defined by the amount of profit secured. They view a bad trade as any trade where they take a loss.This is dangerous thinking for a trader.Remember, nobody can control what happens after a trade is entered - your money is in the hands of the market. The only thing you can control in the market is how much money you LOSE. Therefore, you must plan your losses on every single trade.A good trade is one where you execute your plan to perfection, regardless of the result. A bad trade is one where you violate your plan - even if it makes you money!Some of the best trades that I have ever taken were losses. How so? Because they were small losses on a trade that could have been catastrophic if I had stuck with it. There's no better feeling than stopping out of a trade right before price tanks for multiples of your realized loss. I'm sure this has happened to you. In the moment you are upset that you lost money, but then you see price continue down endlessly - this would have led to liquidation or years of bag holding. You saved your bankroll by taking a small loss according to plan. That's a GOOD TRADE.The success of a trader is determined over thousands of trades. You cannot judge your system on a few trades. All you can do is protect your capital with small losses over and over again to keep you in the game.Trade your plan and over time you will be rewarded.In This Issue:Bitcoin Thoughts And AnalysisAltcoin ChartsMicroStrategy Buys Another 29,646 BitcoinsThe SEC Is Suing RippleBitcoin Is In A Supply CrisisThe Wolf Of All Streets Podcast Ft. Dan HeldMy Recommended Platforms And Tools