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- Apr 9, 2006
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Maybe it's just that the dollar is undervalued. All aboard the bitcoin train!
isn't bitcoin the most overvalued of all?
it is worth 0 in my mind
Maybe it's just that the dollar is undervalued. All aboard the bitcoin train!
Anybody got in on RKT 🧑🚀? I was able to regain some of my loses from GME 😅
Fo shizzleDamn today was yet another crazy day
ugh how did you know about them, what's their deal. nice gainz todayAnybody got in on RKT 🧑🚀? I was able to regain some of my loses from GME 😅
you wrote a detailed story about how you made 13.5k playing games one day but its supposed to be a lesson on losing money in the market. no offense but I dont get it.I'll give you guys an example of why it was a good idea for me to give up trading ~1.5-2 years ago.
Was reading @neurochica 's posts with her excellent swing results this past week and I immediately got the bug again. And I imagine there are some newbies who are enticed by her P/L screencaps.
So, as I'm bitten by the bug I start looking at my charts, and they look fantastic for a bitcoin miner/proxy short. Stocks like RIOT, MARA, MSTR etc are making new highs on weaker volume and with a declining relative strength index. To boot, their fundamentals are terrible.
Because I want to try to be a bit risk adverse I started this past Friday buying some in-the-money RIOT 70 puts expiring the 26th. Immediately the position is making me nervous because the premium for options in stocks this volatile is usually pretty expensive, which means that if the stock only moves a little bit favorably in your direction (as opposed to a massive move) you're still going to lose money because the implied volatility is so high. So even though RIOT moves to ~65 my options remain flat to down. And I continue adding even more on Friday and on Monday as the stock goes down to sideways.
Essentially at this point I have $15,000 short position and I'm about $600 up (because of the dip buying).
Then arrives today. Payday. BTC and RIOT are down big pre-market. I am hemming and hawing back and forth before the open whether to set my sell orders at a juicy target price (which there is a good chance of reaching) or a conservative price. Long story short, RIOT closed down 30% today. But early in the session my stops hit and I sold 3/4 of my position way too early for a conservative profit and the last 1/4 a bit early for a slightly bigger profit. All in all, I closed out for a net +$13,500 gain.
To the casual observer it sounds like a pretty good day, but I'll tell you why it isn't. "No one ever got hurt taking a profit" is a great saying, but I've always had trouble mentally absorbing and embracing it. I cannot get over the fact that I sold too early today. If I had stuck to the plan, I would've caught the real collapse and that $13,500 gain would've been $23,000. Indeed, I had set a sell limit specifically for that gain in the premarket, but I made an impulse decision and lowered the stop because I got scared. Additionally, I broke beginner rules on Friday and Monday, which I very clearly know are wrong, and just kept going. I added to my position on Friday and Monday on dips which is not a great idea. If your options position immediately goes against you or starts decaying because the volatility isn't matching what's priced in, *don't add more*. But of course, I added more.
Most relatively educated people willing to put in the studying and research don't lose money trading because of lack of knowledge. There are about 15 really good books and countless online resources dedicated to the ins-and-outs of day and swing trading. People lose money because of psychology and lack of discipline. Anyone can come up with a good trading plan, but if you lack the will to follow through with the plan (like if I had let my target sell limit order just bloody stand) because you lack the temperament (too much fear, too much greed, not enough patience), you. will. lose. money. Take my word for it.
That's my point exactly. Results-based thinking leads to inevitable failure in many endeavors, whether it's trading or poker or something else- because doing that conflates luck with skill.you wrote a detailed story about how you made 13.5k playing games one day but its supposed to be a lesson on losing money in the market. no offense but I dont get it.
That's my point exactly. Results-based thinking leads to inevitable failure in many endeavors, whether it's trading or poker or something else- because doing that conflates luck with skill.
Process and psychology is ultimately more important than whether one booked a P or L that day, so thinking that it's a "win" because I made 13k while breaking every foundational rule is not sound. It's the same as thinking shoving 2-7 off suit preflop and flopping 2-2-7 against pocket aces must be worthwhile because you made money that one time.
i lost tens of thousands after buying in at peak lol.
wow thats aggressive. i bought a random spac. dropped 15% alreadyI bought over 100k$ of Amazon right before it tanked in feb, at this point I'm just holding on and waiting for it to come back up. It's really crazy to see the red numbers
Same day delivery?I bought over 100k$ of Amazon right before it tanked in feb