Hey degens I just wanted to say a few more words on trading just for the fuck of it, maybe it helps you make money maybe it doesn’t. Either way, we both need to get out of the Matrix. So let’s free-flow these thoughts.
I’ve been re-reading the book by Jack D. Schwager called Market Wizards and there’s a very unique and interesting trader named Marty Schwartz that I want to briefly discuss with you.
This guy was primarily a security analyst for ten years and traded on the side, consistently losing money. Until one day, he decided to get serious, and become a champion trader earning millions of dollars per year trading the options market, all at the comfort of his home office, with his own funds. Sound familiar? This guy shouldn’t have made it, but he did anyway. Reading his story was super inspiring so I wanted to share some of his methodologies to help you improve your game in the markets.
Marty is first and foremost extremely disciplined with his craft. He thinks preservation of capital is the #1 principle every trader should live by. Meaning, selling at a loss early is better than selling at a loss late. Too many traders aren’t willing to cut losing trades early because they have issues admitting to themselves that they are wrong. To trade profitably, you must know that you will be wrong sometimes. You have to be ok with cutting losers early, and move on to the next trade.
There’s always more opportunities for you to find, you just have to put in the hours to find them. Which is his second principle, always work hard, and become obsessed with mastering your craft. The beauty of trading is that you can always improve your skills. If you can put in the hours to look at hundreds of charts in search for the perfect setup, be disciplined with your money management to control risk, then eventually you can become rich too. But you have to take your trading very seriously. This advice is coming from a guy you turned $5,000 into $140,000 in his first two years successfully trading. And $70,000 into $20,000,000 after a few years working for himself at the comfort of his own home office.
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That’s it degens. Just wanted to pop in and share this guy’s principles with trading because he’s done really well for himself and reminded me a little of my own backstory.
We can all make it out of the Matrix!
-Scared Money