Thread by @sarosijghosh

𝗪𝗵𝘆 𝗯𝗲𝘁𝘁𝗶𝗻𝗴 𝗯𝗶𝗴 𝗺𝗮𝘁𝘁𝗲𝗿𝘀? ⭕️

𝐓𝐇𝐑𝐄𝐀𝐃 🧵

#stocks #stockmarkets #tradingpsychology

1/ One of the most important aspect of making it big as a trader is to learn the art of 'betting big'. Virtually every single superstar trader/investor we have heard of has at some point of time in their careers bet big on their best ideas.

2/ What do George Soros, William O'Neil, Warren Buffett, Paul Tudor Jones, Jesse Livermore, Bruce Kovner, and @markminervini have in common? They all knew and practiced the art of the big bet. They are/were masters of the big bet-in respect to betting big on their best ideas.

3/ Having said that learning how to size your big bets properly and learning how to trade cautiously and conservatively when big bets aren’t favorable (which is most of the time) is crucial.

4/ Winners know how to bet big.
Now, when I started trading I learnt a conventional wisdom that '𝘵𝘢𝘬𝘦 𝘤𝘢𝘳𝘦 𝘰𝘧 𝘺𝘰𝘶𝘳 𝘭𝘰𝘴𝘴𝘦𝘴 𝘢𝘯𝘥 𝘵𝘩𝘦 𝘱𝘳𝘰𝘧𝘪𝘵𝘴 𝘸𝘪𝘭𝘭 𝘵𝘢𝘬𝘦 𝘤𝘢𝘳𝘦 𝘰𝘧 𝘵𝘩𝘦𝘮𝘴𝘦𝘭𝘷𝘦𝘴'.
But soon I realized that its completely bogus!

5/ If you fail to aggressively maximize on your best opportunities, you won’t be able to make exponential returns.
You'll always be told to bet 5% of your equity in a single stock, or something of that kind because conventional wisdom teaches us so.

6/ But, leaning how to bet big and manage that risk is what makes good traders great.
From a personal perspective, I am now leaning how to manage the risk when you bet big and this has completely changed how I trade.

7/ The next step for me is to find a strong stock which is a market leader and bet maybe 100% of my equity in that (who knows).
I know this sounds dangerous and doesn't make sense, but there is a reason why only a small percentage of traders get rich.