Trading vs Gambling probably a thread

While I often make fun of hodlers at least they stick to a plan albeit a bizarre one

When you trade crypto, stonks etc based on an emotional response OR because someone/ Reddit/ YouTube told you a “hot” deal you ARE gambling
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This is in no way different than going to a casino and putting money into a slot machine or playing red at the roulette table.

Following trends for fear of missing out is a doomed path played for hundreds of years. The retail trading industry (this very much includes crypto)
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Makes its money this way. This is why they offer free money to simply sign up. They know 90% of people will make decisions based on natural human emotions and therefore lose 90% of their accounts in 90 days or less.

This is why ppl call it a casino, because for most it is
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Profitable traders are very rare. Not because they are smarter or have better luck

They have taken the time (years) to study the market they are interested in. They create a plan that attempts to limit human emotions

Human emotions are an antithesis to profitability
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Your natural reaction, fight or flight, is to cut your profit short to secure it while letting your losses run in the vain hope it will come back.

A trading plan based on repeatable circumstances is a way to limit you emotions.
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A trading plan however must be provable.
Profitable traders run hundreds and hundreds of back trades on any given plan to access its risk vs reward.
They then make hundreds of small trades to access real world conditions.

Only once statistically proven do they risk real
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Money

Even with a proven profitable system in place that system cannot be 100% correct.
A trader must be prepared to lose 5 trades in a row and come out with enough capital left for the 6th

Easily you can see risk management is extremely important
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A trader is also keenly aware the market dynamics can change due to outside events that make the trading plan unprofitable.

Knowing all this traders that risk more than 5% of their trading account on any single trade are exceedingly rare.

Most max out at 2%

From everything I have read and seen from legitimate traders and my own personal experiences it is very rare a trader will become profitable over the long term in under 4 years.

Like any skill or career no serious person expects to be competent in their chosen craft in 3 months

That is not to say it hasn’t happened in the same way not every lottery winner ends up destitute.

Their are exceptions but they are few, the market usually gets the unprepared eventually.

People get a few lucky pics or often trade in a raging bull

Market that is spiking so fast any decision is profitable

Predictably they believe they have the Midas touch and gamble their profits into a greater deficit than they started with. Some of these people even wrote best selling books only to lose everything a few years later

When listening to these people standing in front of rented lambos and yachts telling you about this great trading scheme ask yourself why would they do this? 1000 dollars a day on 3 bar scheme sure does sound good, maybe too good

(seem to be missing tweets )
There are people on youtube that do offer good advice. Invariably they will tell you the same thing I have and certainly not what you want to hear.

Hindsight in trading will cause you to make emotional trades that very often lose.

"If only I had

bought that" even though you weren't even looking at it. "I won't miss out this time" is probably the greatest money losing gamble you will ever make.

As a trader only ever look back at the trades you were looking at good and bad. There are hundreds of trades you didn't take

At any given moment during the trading day. Concentrate on the market you like, start with only one and become profitable in that market both up and down.
Bitcoin went from under .001 to 1, it went 1 - 100, 100-1000, 1000-40000 so don't fret. There are always more opportunities