ok faggots can we have a serious discussion about money management and trading? Since you are the only frens I can talk with about money, I need serious opinion from people that live of their trading strategies, trading bots, or anything like this.
It's been 3 years and a half since I started trading, and I'm being profitable since 2 years. By profitable I mean I can now assure 3% growth every month, at minimum. I started small, but now I am sitting on ~30k using my strategy. In my country, after taxes, this means only 600 or 700€ a month, which is cheap, but at one point, I'm going to be able to leave this wageslave system and own a trading company.
So, do you have any advice on how to manage your capital? How to mix capital growth for compound gains and profit taking? What are you others income sources? Youtube channel, ad services, etc? What is your daily routine to keep a positive mindset?
damn how did you get to discover my strategy? I didn't even gave a clue. But that's not what I want to talk about
Aiden Martinez
by low sell high. buy for long term sells and ride quick bulls for extra bux. shitcoins and altcoins will serve you well for the latter.
Chase Turner
I'm a (semi) retired professional online poker player. Decided to go back to college because I wanted to something else with my life. I made about $1MM after taxes over 5 years (playing full time for 3 of those years).
Many aspects/ challenges that comes with playing online poker for a living are very similar to trading: risk management, variance, mindset, always having to perform your very best (even if you're on a downswing), managing your emotions outside "work", work/ life balance, not having a predictable income, dealing with irregular work hours when games/ markets are hot, dealing with a lot of stress sometimes etc.
Let me know if you have any specific questions.
I invested like 90% of my winnings.
Lincoln Myers
You seem better off than most Zig Forumslets. There are people her who unironically didnt sell the top 3 years ago and think they are smart. What strategy are you using? Im too dumb to write my own algos so I just use very simple indicators.
One thing I started doing recently is do a series of 15-20 trades based off a few basic indicators, and set stop losses religiously. A major thing Im trying to do now is stop looking at each trade individually and instead looking at it as a series of trades, and looking out for all negative thought patterns that emerge when a trade doesnt go my way. I think my biggest issue is my mental attitude which led me to repeatedly make mistakes and enter negative feedback loops. If you havent seen it I highly recommend Mark Douglas "how to think like a professional trader" seminar on youtube, it made a lot of things "click" .
I also allow myself a few bucks to gamble on swing trading defi shitcoins which as you know can have insane movements in 1 day. Made a lot of mistakes learning the defi game I sank too much capital on high-yield farming projects because I got greedy and paid the price- and this was after I was warned that these projects pumped for a few hours maybe days after release then had massive crashes shortly after when early whales took profits, but I was greedy and didnt listen.
Brandon Wright
Dudes, I want to know your reviews about one platform: duckdao.io
Came across their Hunter Season on Twitter, this is a kind of crypto game and platform with investment modes. They made long-term partnerships and Foundation for modern blockchain-based systems.
big brain talk, me just buy the dips as the pic says when btc does a flash crash and i usually buy shitcoins that i know will recover fast then i sell after small recovery this strategy is 100% effective literally every single time
John Jackson
What indicators tell you whether or not a shitcoin will recover fast?
How much % of your capital would you invest in any one stock/crypto max? How did you decide on keeping 100k in your bank account as opposed to any other amount?
Jordan Allen
Never invest more than you can afford to lose. He probably lives off the 10 percent and invests the rest. Why the fuck would you have 100,000 in fiat just siting around being lost to inflation. Leverage your money invest nigger.
James Collins
What is your investment strategy? All I got is DCAing
Jose Richardson
The exchanges are getting less popular in the last year. We need to support more innovative systems like gotem.io. You can stake nodes to run a decentralized version of the platform.
Wyatt Nelson
sorry I was afk for an hour. I'm glad the thread took off a little bit!
thank you for the answer, really what I wanted to know and how I imagined the thing. Especially >not having a predictable income This might take strong effect on your mental, trading for a living is totally different than trading as leisure with your food money. Question, how did you manage the money you wanted to take out, and the money you wanted to reinject in term of proportions? Did you have a specific method?
>You seem better off than most Zig Forumslets. I'm still a faggot op and hate to be one, but thanks.
I didn't wanted to expand on my strategy but why not, I'm not smarter than anyone else, but I think just more "pragmatic" and not greedy at all (people that started mid 2017 are way richer than I am now). Basically, I buy low and sell a bit higher. For real, I wait for dumps, big fat dumps, and buy the panic, and sell whenever I feel comfortable, exactly as said.
fuck off spam bot
this guys get's it
this is where trading skills are important. You can't buy any dump, and only time and experience can teach you when to buy.
thank you my fren, this is the best compliment I can get
day trading is a meme you are not smarter than everyone else u will spend all day trading for 3 years and break even if you are extremely lucky get a job
Leo Jackson
larp
William Walker
I hear what you say, I have a job but i am planning to leave it. Day trading is a meme, I agree, only a few traders are profitable, and after 2 years of this shit I can say I am one of them, for now. My plan is to keep testing for a year or two, and then live of this meme, or lose it all.
Kevin Howard
>Basically, I buy low and sell a bit higher. For real, I wait for dumps, big fat dumps, and buy the panic, and sell whenever I feel comfortable
This is not a bad strategy. Hoe many trades do you usually do per month? Im not a pro trader by any means but I try to learn and improve. Ive learned to stop looking at short time frame charts, because day trading isnt for me. On volatile defi shitcoins I will, but for everything else I try to use daily charts, 4 hr, and 1hr only for entries. When there are big moves with a lot of volatility like this past recent dip I will monitor the 1 hr chart - when it bounces off my fibs or emas I buy and set a stop loss. Day trading is very difficult indeed, its better to use longer time frames and do short/medium term swings. However there is no reason why you cant be patient, look for signals, and protect yourself by taking profits to re enter positions you believe in. Look at all the anons that didnt sell link when it hit $20 after several days of falling volume, lower highs, and falling momentum. Some poor souls probably waited too long and then panic sold at $8. If you are patient and pay attention you could have exited at $17-16 and re entered at $9-10. This is a bit easier than trying to trade dozens of times a day and beat the bots.
Owen Morris
10% in one stock at the very most. Usually significantly less. It depends on how risky the stock is and your conviction. Having 10% in some meme stock like AMD or ZOOM is very different from having 10% in Coca Cola or Pfizer. Crypto is 7-8% of my overall portfolio. What I meant by investing 90% is that I spent the other 10% on living expenses, travelling, consooming etc. It was probably more like 15% now that I think about it though. > how did you manage the money you wanted to take out, and the money you wanted to reinject in term of proportions? If you're beating the games I played at a high winrate/ roi you really "only" needed a $100k bankroll to practically having a 0% risk of going broke. And I always had way more than that so I never really had to worry about setting money aside for poker. I would usually keep enough money across poker sites so that I could weather most downswings without having to deposit money. But not more than that. It's obviously pointless to have $100k on poker sites when that money could be invested in stocks and earning passive income.
I think my worst downswing from poker was $45k over a few weeks. And at that time I probably had a $500k+ net worth. So I was never really at risk of going broke. But it can still be pretty stresful to lose/ win large sums of money and it can really affect your life outside work.
Adrian Walker
I work at a forex broker, and I can tell you that it is 100% possible to make a living trading, but people let the fud get to them. The "95% of traders lose money" thing is true, but it's also misleading. The vast majority of retail "traders" are some combination of retarded/gambling/uninformed. It's a rarity to see people actually placing orders with stop losses or exercising any form of risk management. Manage your fucking risk, it's by far the most important thing. If you have a simple strategy that relies on a few indicators and basic fundamentals, and you manage your risk properly, you are in a better position than that 95%. Dont risk more than 2% of your capital on a trade, and set your profit targets before you go in.
The people who scream and cry and say TA doesn't work and that you can't make money trading are the people who load up RSI and bollinger bands at the default setting, look at the 15 minute chart for EURUSD, and dump their whole stack leveraged 100x. Don't let the crabs get you, if you're already profitable, dont fuck things up by going for the big score, keep making consistent profits and compounding will take care of the rest.
>Hoe many trades do you usually do per month? I am roughly at 15 trades a month. I tend to the exact same conclusions as you, short-term is for quick bucks shitcoins and DEFI, but otherwise, I now only trade on 1h chart at least, 4h most of the time. I completely stopped and forbid myself to put a finger on margin trading again, I lost my money every single time I tried this shit.
>When there are big moves with a lot of volatility like this past recent dip I will monitor the 1 hr chart - when it bounces off my fibs or emas I buy and set a stop loss. This is exactly my moves, I use a lot of fib retracements, and support lines, no other indicators. I also try to trust my gut because sometimes you know when a dip is coming to an end, lower spyke volume, fake sell pressure on exchanges, high proportion of shorters coming in the market etc.
Call me a retard because I know I am one, but one part of my strategy is that I don't use stop-losses. I know some day I will lose it all, but so far this brought me so much money. If I didn't catch the bottom, I add more money on new downsides, and again if I need, lowering my average entry. Every fucking time, for now, I made money on moves like this. This is martingale 101, but done properly, on solid coins and not shitcoin flavor of the week, I proved it to be safe. If I want to make it as a living, I know I will have to polish this aspect of my strat and I am currently working on it. Where do you put your stops for instance? I use to buy areas where people put their stops so I'm having hard time finding good spots...!
Oh and did I mention it? Never be greedy, I fix myself a taking profit limit, and get off way too early every time, but in profit nonetheless. This saved my life many times.
Jayden Bailey
But what if i only have 200 Euros? how the fuck am i supposed to trade with 2 euros
Hunter Barnes
Thank you again, I can totally relate and understand what you say, except that you can substract a zero to every amount you said above. Did you have a daily routine? Sport? Social life etc. How did you managed your emotions?
screencapped, pure gold. Thanks for sharing. >Dont risk more than 2% of your capital on a trade, and set your profit targets before you go in. Sure, this is trading 101, I just ignored that those 95% of traders was shitty retail wannabe traders
Lincoln Garcia
Get a job, I don't know. Being a winning trader isnt about being some nu-nostradamus like cryptotwitter pretends to be. Your goal should be to minimise risk, not maximise profit. Even risking 5% per trade, 10 losses in a row - which will happen eventually - is a 40% drawdown.
Carter Roberts
If you can discipline yourself into DCA, then you are ready to scalp or grid trade.
Levi Torres
hmm thats a good advice. ill keep that in mind
David Scott
Learn about risk management, he didn't said "invest 2% of your capital" he said "never risk more than 2%", this is totally different. Playing with your 200 Euros, and risking 2% means you have a stop a -2% of your entry. If you prefer a stop at -4%, then you can play with 100 euros. This changes with leverage trading of course.
Dylan Bell
>completely stopped and forbid myself to put a finger on margin trading again, I lost my money every single time I tried this shit.
Ha same, in my case it was too tempting to go to shorter time frames when trading on margin. I will work on it and when Im better more disciplined and have a larger wallet I will try to conquer it. >This is martingale 101, but done properly, on solid coins and not shitcoin flavor of the week, I proved it to be safe. Done in a bullrun on solid coins I dont think this is bad, since on crypto we have so many scam wicks. If you have a sizeable wallet its also not so important, since you can afford to hold positions for years. That is not my case so I need to protect my capital because if I dont set stop losses then I risk getting stuck with all negative positions and no more money to trade or to buy dips after corrections like the one we just had.
As of now Im setting my stops at a set % down of when I enter a trade for the reasons above usually 5 or 6%. Its very frustrating to get stop hunted, but Ive lost out many opportunities in stocks and crypto by not having set stops. Now this is just what Im trying at the moment to see if it corrects some of my past mistakes. Another thing that goes along with it is waiting a bit more for confirmation before I enter - if I buy as soon as I get a signal chances are there will be a few wicks down to hunt the stops just below it before it goes up again, so I bite my nails and try to wait for this to be over and an uptrend confirmed before I enter
Blake Foster
this is fucking scary... I have the feeling that I could have write down everything in your post... Except maybe for the stop-losses, I have been hunted down so many times that I have some kind of PTSD of the stop-loss and I hate to use them. I prefer being stuck in some position (not all my wallet indeed) for months. I completely assume that it is idiotic as I should just take a loss and make 15x more winning trade behind, but I just can't use stop for now. I am working on it i can assure you!
Jonathan Cruz
Leverage doesn't affect that, as long as you calculate your position size properly, and set your stop before you get liquidated. There are plenty of calculators online, most major forex brokers have good ones.
Anthony Parker
np > Did you have a daily routine I would usually try to play/ wake up during the same hours (usually around 5 pm to 1 am). But if games were "too good to quit" I would sometimes have to stay up all night which would really mess with my sleep/ schedule for the following few days.. > Sport? Not really.. But I eat/ ate pretty healty and would go for a lot of walk. > Social life I'm an introvert so I don't really need a lot of socializing to be happy. I haven't really had any good friends for the past few years :/ . I had a girlfriend for some time and went to parties/ social events every now and then. That was honestly all the socializing I needed. When I broke up with my gf I did feel a bit lonely at times. But I did a lot of travelling while playing and met some people through that. I also talked with other pro poker players (some of them my friends) on discord. > How did you managed your emotions? I've always been pretty good at this (but far from perfect). It can be a lot harder than it sounds to play your A-game when you're down a lot of money. Or quit when you're not playing well. You get better at it over time. Having a lot more money than you technically need definitely helps so the swings never are life-changing. My swings from the stocks market were usually be bigger than my swings from poker. I would usually work 6-7 days per week. When I had a really bad couple of days, got burned out from poker or wasn't happy with how I was playing I would usually take some time off. Sometimes a couple of days. Sometimes a few weeks. When I got back to "work" I would almost always feel better and/ or play better. It's very important to take breaks when you're your own boss and do something as demanding/ exhausting as trading/ poker for a living.
David Rodriguez
what I meant was that I usually would play between 5 pm and 1 am. I would usually go to bed at like 3-4 am and wake up 7-8 hours later.
Dylan Anderson
Bro secure a job first. I took a huge opportunity cost to focus on studies for 6 years but last year I started my first job at 25. However I'm making 68k euros a year. Now I have a comfy 20k euros saved and only started to learn about economics and investing at 26. I guess it is what it is but I'm in a great position because I'm EU and have 0$ debts.
And even I only started with 150 euros in crypto last weekend. I am waiting on my verification to go through to my Degiro account.
use a sizeable amount of money for trading and invest atleast half in LINK and continue doing so.
Grayson Green
>I'm an introvert so I don't really need a lot of socializing to be happy hey i never meant to fool anyone, we are on Zig Forums and i am introverted too. But I like to see my close friends IRL because I still have somes and I think this is important. >Having a lot more money than you technically need definitely helps so the swings never are life-changing. Very important advice here, you need to play with small portion of your capital, at any game or trade, at any time, to lower the emotional attachment. Thank you very much for sharing aspects of your life, this really helps me
Luis Harris
I've been using Degiro for some of my investments for 5 years. Their fees are low and they have cheap leverage (1.25% / year). The platform/ interface is pretty shitty but I don't really care. Haven't had any major problems with them.
