Thread by @TradetheMatrix1

Very high % aim constantly on investments is biggest trap one can set him/herself for in markets. We have seen frenzy in #crypto and #smallcaps over past 1.5 year, which caused many of bagheld positions.

The higher your % aim is, the bigger the need to be close to market.

1.

Aiming small % in any speculative market is not as difficult, as % are ramped 10 fold, the difficulty increases massively and your chances of failure too.

Reason: Need for timing increases as well. To get high % movers the timing on cycle start/finish has to be excellent.

2.

Extracting 10 500% rallying tickers out of one strong cycle requires a great cycle timing skills, knowing when aprox the cycle really has started and how much longer can it aprox still have. Why beginners fail here? Because this takes (2-5) years of training to develop.

3.

Diversify. Many looking for large % gainers put it all into single asset. The math tells you to do it well the opposite should be done, VC style approach. In theory "knowing one company" sounds nice, but you dont know which ticker market will bid for real.

4.

Have said it before. Hunger and sloppiness are two uncompatible conditions in #trading. Aiming for high gains but not doing any careful research or having experience doesnt go hand in hand well. Sloppy and low-hunger appetite can work however to extent.

5.

The goals that you set for yourself or from market expectations have to be reflected trough your personal skills and experience. Beginners especially if young will not understand the importance of that which is okay, but not acceptable for others.

6.

Two types of #traders #investors mentalities:
-quick big gains mentality focused on monetary side:
Guaranteed extraction target

-slow low aim mentality focused on learning:
Testing ground.

7.

"Testing ground" type of individual wont be anywhere near guaranteed success, but at least he/she has chance to figure enough of the game out to have chance long term.