Loan Application - Why you must trade this market
- Thread starter kmiklas
- Start date
You trade when the market offers a good setup AND when you are ready: experience, preparation, capital management etc.
Just because the market appears hot to you does not mean you should be trading it. That is how that "90%" fail. The "f that" comment, then the "positive attitude" psycho-babble, sounds like a poser acting like a seasoned trader. And then to encourage others?
Sub Prime was pretty straight forward. A Pandemic and a decade+ QE exit is a bit more complicated, imo.
Just because the market appears hot to you does not mean you should be trading it. That is how that "90%" fail. The "f that" comment, then the "positive attitude" psycho-babble, sounds like a poser acting like a seasoned trader. And then to encourage others?
Sub Prime was pretty straight forward. A Pandemic and a decade+ QE exit is a bit more complicated, imo.
And if you do, your position sizing should be marked accordingly.
No use entering 100 times a day if the market blows through every stop because your risk tolerance is too low for >1% hourly swings.
I've seen, and been cut by boiling markets in the past.
Entering as if it's a normal but busy day without additional risk management is going to bleed you out.
Taking a loan out, and then trading as normal, is like seeing a volcano and jumping in without testing the water, all because you've been to a hot spring that one time.
Being in such a market is important, as it will leave you with a sense of the massive scale you're dealing with, but dedicate a small percentage of your capital to doing so, if it's your first.