I was expecting a Sunday dump to add to my $MAGIC bag with the upcoming gaming convention next week. Didn't get it. Still happy.
A lot of the time in trading, I try to create a scenario where I will be happy if the number goes up.
And also happy if the number goes down🧵
What I mean by this is if you are fully allocated at the start of a trade, and there is some volatility before your catalyst takes off, you might puke your entire bag, sell at a loss, and watch your entire thesis play out.
Your bet size has to make sense or you'll fumble. If you're right, and your entry is spot on, and you have 75% of your max position, are you going to be upset? Heck no, you will be very happy, and you'll ride it.
As you're riding, forget what the number looks like, and exit as you should on catalyst or new info.
If you're a little early, and your entry isn't spot on, and price dips a bit, maybe you'll add size, maybe you won't, but you're less likely to puke the entire bag due to normal crypto market volatility than if you had over-allocated from the start.
This "make sure you're happy in all scenarios" method has saved me from fumbling many bags before and has allowed me to hold on until my thesis plays out. It also helps inform your bet size, and you are different, your emotions are different, your feelings are different.
I find it completely asinine coming from a Forex background where the entire industry promotes 1-2% portfolio risk every single trade, and no more or less. This static sizing makes me sick... I could take about that forever. But more on that for a bet sizing thread...
For now, try this simple trick. When you are entering a position, ask yourself the simple question:
Will I be happy if the number goes down?
Will I be happy if the number goes up?
Adjust size based on your answers.
Be happy.
GM. This morning I am happy.