I first got interested in bitcoin in early 2016. Back then it was trading at $350 to $450 per bitcoin. This month it broke above $5500! I am in pain! – Why? Because I listened to the voice of caution and never got involved back then. I only acquired a minute fraction of a bitcoin this week.
Recently I noticed somebody ask on social media whether other traders felt guilty when they won money in a trade because it means that somebody else has lost money. My first thought was…
Are you serious?!
A friend recently recommended this book. It captivated me because it takes an interesting approach to mind management. Even though this book does not specifically target trading psychology, I think that it is very useful for traders because it gives you tools to control your emotions and mindset.
Due to two disappointing trades recently I started thinking more about exits and returns. Are 3% or 4% a good return per trade? Should I aim higher, risk having to stay in a trade for longer and potentially suffer through a temporary downturn or eventual loss? What is the effect of trading fees on my returns?
This TED talk is really impressive. Not only is the content so relevant, but his delivery is captivating.
Starting out I thought I’d need to create a brand-new list of tickers for every trading day because I was mainly looking into day trading at the time. Listening to the Chat with Traders podcast offered me a new idea. Quite a few traders there seemed to focus on just a few stocks. How many “a few” actually means differs from person to person. However, the idea appealed to me.
Expectancy is suggested to be an even more important metric than accuracy to evaluate your trading performance. I see it a bit like a contractor’s day rate – the pay per unit of invested time with effort and experience being factored into the charge. Only that expectancy denotes your pay per trade with invested time and effort being rewarded (or not), and it is more of an average rather than a guaranteed amount per unit.