This newsletter is sponsored by PHEMEX, the only exchange that I use to trade crypto with leverage. Sign up with the link above and get some free Bitcoin. I really encourage you to check them out, I love the product and the team.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.Note - I am waiting for BTC to settle before posting any more altcoins trades. Sometimes it's safest to just wait a day for the dust to settle!In This Issue:Bitcoin Crashes While Speculation Rises - IntoTheBlockBitcoin Thoughts And AnalysisLegacy MarketsChart RequestsMatcha - Better Prices, Limit OrdersHow To Margin Trade Like The ProsMicroStrategy Bought More BitcoinThe FED Is Taking The Digital Dollar SeriouslyFed Payments Systems Go Down (Bitcoin Never Goes Down)The Wolf Of All Streets Podcast Ft. Alex AdelmanPhemex WOW CampaignMy Recommended Platforms And Tools
The Wolf Den #186 - Defining A Good Trade
The Wolf Den #186 - Defining A Good Trade
The Wolf Den #186 - Defining A Good Trade
This newsletter is sponsored by PHEMEX, the only exchange that I use to trade crypto with leverage. Sign up with the link above and get some free Bitcoin. I really encourage you to check them out, I love the product and the team.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.Note - I am waiting for BTC to settle before posting any more altcoins trades. Sometimes it's safest to just wait a day for the dust to settle!In This Issue:Bitcoin Crashes While Speculation Rises - IntoTheBlockBitcoin Thoughts And AnalysisLegacy MarketsChart RequestsMatcha - Better Prices, Limit OrdersHow To Margin Trade Like The ProsMicroStrategy Bought More BitcoinThe FED Is Taking The Digital Dollar SeriouslyFed Payments Systems Go Down (Bitcoin Never Goes Down)The Wolf Of All Streets Podcast Ft. Alex AdelmanPhemex WOW CampaignMy Recommended Platforms And Tools