Judging by the title of the post, I bet you think I'm going to write about how many people just got liquidated by the Friday crash. Well, I'm not. This post is more than that.
It's been a few days since the biggest flush in the crypto history has happened. I've waited a few days to see the reactions, or better yet, for my suspicions to be confirmed, but now it's time for me to put my thoughts on paper.
Indeed, so many got really hurt and when I say hurt, I'm not talking about losing $15, which some people from some countries consider a fortune, but about tens of thousands, even millions. Today however I'm not going to talk about those who lost millions, but about the small ones, for a good reason.
Before I go on, I'm not here to gloat or mock anyone. I feel sorry for every lost penny (even though it's part of the game), regardless who's pockets have been affected and I know people who took their lives after a crash like this. My purpose with this post is to (maybe) open their eyes and try to show them another way of doing things. Too bad those who could learn from it are not going to read it, but that's life, I'm ok with it.
As I said, I waited for a few days to see the reaction, especially on Hive and as expected, what I saw in posts was them showing off with big numbers referring to the magnitude of liquidation. This is pretty common as they think it hits hard. Then again what we usually see here, blame thrown at whoever they can, Trump, insiders, you name it. Most likely the reason behind these posts, besides getting some Hive is the hope to look smart. Dunno.
I saw a few people posting about them getting liquidated. Getting an email from the exchange notifying you about being liquidated is brutal. This is when you see them saying who the hell thought the market is going to drop? Or the market has not been kind to me.
Well, I have news for you. The market is not here to be kind to you. The market is a place where supply and demand meet and despite how it looks, not everyone loses. There are people who win and there are those who don't win, but don't lose either.
Who knew? This is, was, has been the question after every crash. No one honestly, or only a few people (those who shorted $BTC heavily and made millions), this is why we have risk management. If you really are a trader, you know there's a level where you're wrong and that's where you get out of the trade to protect your capital. That is called stop loss. If price dips below that level, or goes above it if you're shorting, your idea is invalidated and you get out with losing only a small percent of your capital.
Every exchange has a liquidation level calculator. When you enter a trade, you already know what your liquidation level is and your stop should be way above that level. Not knowing where your liquidation level is, or not using a stop, is not the market's fault. Blaming everyone is also not going to save you.
The sad thing is, you never see them asking questions like, what did I do wrong, where did my TA go wrong, why was my position, or account liquidated?
The saying walking the same path and expecting different outcome is considered a cliche, yet so many do exactly that. The industry calls them gambling but the truth is, they are even worse because the gambler has 50/50 chance to win, but throwing money into leveraged positions without knowing what you're doing can only result in losses.
Smarter people than us have invented journaling and today you have some platforms offering amazing journaling services and provide amazing analysis on the data you import from your exchange. Using these services is not going to save you from losses, but can point out your weaknesses if done right.
Those who are really determined to make trading work and get profitable usually get themselves together, start studying, backtesting and apply risk management. Others are just blaming the market, market makers, insiders, scam projects, you name it. This is life and there's nothing you can do. They are going to disappear from the market as at some point they are going to get fed up with losing everything, then others are going to join and do the same thing. Life goes on.
If you're a newbie, you may want to check out these guides:
- Communities Explained - Newbie Guide
- Cross Posting And Reposting Explained, Using PeakD
- Hive Is Not For Me
- How To Pump Your Reputation Fast - Newbie Guide
- Tips And Tricks & Useful Hive Tools For Newbies
- More Useful Tools On Hive - Newbie Guide
- Community List And Why It Is Important To Post In The Right Community
- Witnesses And Proposals Explained - Newbie Guide
- To Stake, Or Not To Stake - Newbie Guide
- Tags And Tagging - Newbie Guide
- Newbie Expectations And Reality
- About Dust Vote And Hive Reward Pool, by libertycrypto27
People play with money they don't have to get things to impress people that don't care. :)
You can see the same behaviour on a casino floor. Someone walks in with $500, gets up to $2000, loses $500 of that $2000, thinking it is "their" money, Then uses the remaining $1000 to chase down that $500 loss - before walking out with zero.
The market, and the casino have edges. The edge? They're in on every trade. A single entity is just a guest.
In order for one person to gain money, another must lose it, or exchange it for something that they believe to be of value.
Basic economics, of course. I long ago "cashed out" significantly more than my initial investments into crypto, so everything that remains on the table is "house money". It can go to zero and I will not care.
But I suspect that I am here for a long time, not a good time, and like other markets, time in vs timing - time in always wins.
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That is true for leverage trading, but not only. When I read this, my first thought was US citizens living in the US. Everything is bought on credit and when you look into their finances, everything they have is owned by banks and financial institution.
I'm here for both 😎
The whole thing reminds me of poker. You got to know when to hold them, fold them, walk away and to run. One has to have a great understanding of the trends and of course have limits and foremost not let it become an addiction. Early morning here and I got that Kenny Roger's song playing in my head. For your audio pleasure:
I'm glad you mentioned this as I don't know how to play poker. I remember as a kid, our dad didn't want to teach us poker. He said better not as it's addictive. After I grew up, I wasn't interested, so I don't know how to play it.
I know this song, thank you for the link 🙂
Wow! Beautiful flowers 🤩
Thank you!
you remind me when i do betting exchange, it's similar, market makers on quotes before the match start, when i take a quote there's a little risk of a crash that might make you lose a lot of the investment, that's why wise people do stop loss there... i accept a loss of 4 euros to save 70 euros... the other thing is, always put money you are willing to lose, not many people think about that
Interesting. I know nothing about betting, so this is new to me, but I'm glad to know such option exists.
That is a golden rule in trading, but so many think they can outsmart everyone.
No need to know anything about teams and soccer in general, it's pure trading like on hive-engine tokens, like here, you can buy quotes at for example 2,72 and then sell to others the same at 2,7 so the 0,02 difference is all yours, all before the match starts... Interesting concept
Interesting indeed and looks like I would like it, but better not get into it 😂 you know why 😆
Haha, actually it's indeed fun and you don't feel the pressure and the "work for life" vibe, more a hobby
My biggest concern with these is addiction. I have addictions.
i guess it depends on what kind of addictions, phisycal or mental ones... i can't deny it requires a good mind strenght, if you fall on the betting hole it's easy to get addiction, the trick on this is ALWAYS exit the market before the match start making it just pure trading like on shares or crypto markets, if you gotta exit in red then be it, there will be gains other times to recover
Very" beautiful 💕💕
You mean the flowers?
Yeah right
!discovery
!PIZZA
Thanks Jesus!
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