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ShroomingMantis t1_iyev4dj wrote

Reply to comment by JDmexican_92 in $20k to $300 by JDmexican_92

Thats why you have to remain consistent in what you do , to allow the irrationality of the markets to work out in your favor.. if you're buying floors, and you just got stopped out of the last 3, you don't switch to shorting downtrend, you keep buying floors because all those shorts printing are going to sooner than later cover and reverse the momentum, you already missed the move, now you're early to the next one, but it'll come.. for example.

The trick is to trade something consistently repeatable, and manage loss on the occasions when price doesn't play out the way your trade calls for, because it will, because the market is stupid and inefficient sometimes. Its not our job to try and control that part.

I'm gonna guess, either you had no technical analysis on your trade, or your 10k loss could have been a $300 loss, but you stubbornly ignored the chart saying it wasn't time to go down yet. Again, I'm speaking from the heart and my experience in hopes to help you find where the next step forward lies. 🙏

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JDmexican_92 OP t1_iyexi5g wrote

I was mostly basing it off what I was hearing from the meeting today and how J Powell was saying that they weren't looking to slow down yet because they've seen before what early easement does. How they will remain persistent and how it looks like inflation isn't quite under control to their liking, and definitely felt like bearish sentiment. Plus the massive spikes occurring before the meeting even started on top of more spikes as he was making the statements, it just felt completely illogical that the prices were going so parabolic. So I would buy more each time, especially since this exact scenario occurred last time. Only it didn't crash the same way after the meeting concluded.

Now I'm just gonna need to sit out for a long while until I can save some money on the side to start putting back into my account. By then, who knows how the markets will have changed. I guess I'll just be an observer in the meantime.

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ShroomingMantis t1_iyey85r wrote

Ya betting on Fundemental catalyst events is one of your highest risk scenarios if you aren't capping your risk tight, arbitrarily, increasing the chance of taking that loss by alot.

My advice, homie, is to hop in a simulator while you save money, and practice building a legit system that protects your capital and still offers upside.

Ik it's gonna take a long time to fully process the losses, but don't beat yourself up. Its a common mistake that good traders can make when they aren't fully aware. Most ppl who short, learn this lesson this exact way, its just a matter of how much you pay up.

Good luck dude, don't give up on yourself, no matter what.

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