Why you keep getting liquidated on BitMEX – SirSalty
Few things to point out before I get into the nitty gritty:
- Leverage trading is fucking stupid.
- Leverage trading with 100x is even fucking stupider.
- You have to be really good at trading to make even 10x Leverage work.
- I am not good at trading.
Now we’ve got the vitals covered let’s delve into why I (and you) suck at high leverage trading.
If you know anything about me you know I don’t know when to stop and can take things a bit far. I get emotionally invested in whatever I’m doing, which is great for writing articles and making videos.
But when trading (least of all high leverage trading) this is very fucking bad.
It’s hard to avoid in the first year or two of trading but during this period it should at least be getting better.
With me it absolutely hasn’t.
Over the past 2 years I have learned how to do technical analysis to an arguably acceptable degree. When I plan a trade idea there’s a good chance it will make profit.
But planning and executing are two entirely different beasts.
You could teach a monkey how to chart but put that monkey’s bananas on the line and he’s gonna get very fucking primal.
While trading some of us are fully at the whim of our limbic system. Our limbic system is the part of the brain that deals with emotion and memory. It can make us feel panicky and want to fight for what is ours.
This ancient system is primitive but highly effective at keeping us out of dangerous situations. It does this through the fight or flight mechanism you’ve likely experienced. This is great if someone is running at you with a knife, or stealing your property- but not so great when you’re trading your net worth.
The problem is trading is stealing property from people. You can lose your bananas and livelihood. Things are at risk. The difference is it’s not necessarily our physical well being at risk but try telling your brain that. If it is your physical well being at risk then you’re doing it wrong.
To trade you need to be calm and collected. You need to be able to take a loss. You need to be able to invest no more than you can afford to lose.
If you don’t have that mindset from the jump off your trading endeavours are going to look a lot like mine..
Published at Sat, 18 Jan 2020 20:00:30 +0000
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