We all like to hit the ball out of the park. Entering the markets, who does not like a 4x or 5x trade? The problem with this is it can be reckless is this is all focus upon.
In this video I discuss how it is important to take the "singles".
▶️ 3Speak
i believe greed is another factor that do often destroy so many traders whenever they are trading on the market...
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Fear and greed drive the markets. People who get consumed by them end up getting eaten alive.
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what a great video sir @taskmaster4450le
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Thank you @goodplace.
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@taskmaster4450le should we call it greed or just desperation to make profits from trades??
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Summary:
In this video, the speaker discusses the concept of trading focusing on making consistent gains through singles rather than aiming for home runs in the stock market. He emphasizes the importance of capital preservation and cutting losses quickly while also highlighting the benefits of making smaller yet frequent profits in trading. The speaker warns against holding out for large gains, as they may take longer to materialize and could lead to missed opportunities in the market. The key takeaway is to prioritize protecting the downside, be willing to take small gains, and avoid getting greedy in trading.
Detailed Article:
The speaker delves into the fundamental principle of trading, advocating for a strategy centered on making smaller gains consistently rather than always aiming for high returns. He starts by highlighting the allure of investing in well-known companies like Tesla and Amazon at lower prices and witnessing substantial growth in their stock values. While acknowledging the excitement around such success stories, he stresses the need to prioritize capital preservation and minimize losses by quickly cutting them in trading.
The speaker likens the trading approach to baseball, where accumulating singles (small gains) over time can be more fruitful than consistently going for home runs (high gains). He emphasizes that while the allure of large gains is strong, focusing on smaller yet more frequent profits can yield better results in the long run, especially in the realm of trading. By citing examples of stocks that have shown significant fluctuations, he underscores the importance of mastering volatility and utilizing it to one's advantage in trading.
Moreover, he pinpoints the common trap of impatience and greed in trading, where individuals may hold out for substantial gains while missing out on the opportunity to make smaller profits consistently. He explains that waiting for a stock to multiply several times may not always be the most effective approach, as it could entail missing out on other profitable trading opportunities. Drawing on personal experiences and market observations, he underscores the significance of making timely decisions, taking small gains, and avoiding the lure of chasing after extraordinary returns in a short timeframe.
In conclusion, the speaker advocates for a balanced and disciplined approach to trading, emphasizing the significance of protecting investments, being content with smaller gains, and avoiding the pitfalls of greed in pursuit of significant returns. He highlights that consistent, modest gains over time can accrue significantly and lead to long-term success in trading, contrary to the misconception that only large gains equate to success in the market.