The Day You Became A Better Trader
This is a parody of my favorite blog post: The Day You Became a Better Writer. Go read it first.
I went from being a bad trader to a good trader after taking a one-day course in “crypto trading.” I couldn’t believe how simple it was. I’ll tell you the main tricks here so you don’t have to waste a day in class.
Trading is about confidence and sizing. The main technique is keeping things simple. Simple trading is testable. A good trade with a clear hypothesis and invalidation will be a better process than a brilliant hypothesis with convoluted execution and no invalidation. Don’t fight it.
Simple means getting rid of extra legs. Don’t buy “BTC+ETH+Random Shitcoins” when you can buy “BTC+ETH”. You think the “Random Shitcoins” adds something. It doesn’t. Prune your trades.
Humor trading is a lot like business trading. It needs to be simple. The main difference is in the choice of assets. For humor, don’t buy “BTC” when you can buy “DOGE.”
Your first trade needs to make money. Remember why you’re trading. If it makes money you’re hooked. It makes you curious. That’s the key.
Write a short thesis. Avoid putting multiple theses in one trade. You aren’t as smart as you’d think.
Learn how brains organize ideas. The market comprehends “BTC us up because of money printer go brrr” quicker than “BTC is up because governments are corrupt and ultimately unable to deal with the responsibility to curb spending and protect the purchasing power of fiat money”. Both sentences mean the same, but it’s easier to imagine the object (the printer) and the action (the brrr). All brains work that way. (Notice I didn’t say, “All brains ultimately have a shorter synaptic pathway into simple ideas”?)
That’s it. You just learned 80% of the rules of good trading. You’re welcome.