With the greatest risk, comes the greatest reward and also the greatest loss.
Greed and emotion are by far the worst enemies of a trader. It takes a sharp mind, patience and the ability to act calmly and collectively, even in the face of defeat. These are skills that everyone can master but even in an experienced trader, must always be practiced and refined. A comprehensive knowledge of technical analysis, charting, indicators and overall market conditions are important tools and should also be mastered. These skills take a significant amount of time to learn but in reality cannot be effectively learned unless used. Meaning, one must use them in real world situations. They must be exercised in much the same way one builds physical strength by working out. The more they are practiced the more refined and strong they become.
There are many content creators out there who will push their narratives upon you and tell you that it isn't financial advice. Being able to discern deception from truth is an acquired skill that should also be mastered. Many will talk about new projects to their large followings while holding large bags that they bought extremely cheap only to dump it on everyone that buys into the hype. There are some honest people out there but it does take some time to locate them and one should always be cautious. It is also worth mentioning that even once this skill is mastered, it cannot be 100% effective. On occasion there will always be the occasional high risk investment that costs you money due to pre-sale whales dumping on new investors.
It is important to never risk more than you can afford to lose. Risk management is an absolute key to success. Any investment is a risk and should be considered lost as soon as the risk is taken. Entering into trading with this mindset will not make losses painless but it will help alleviate that gut wrenching feeling when things do not go your way. They will not always go your way. All it takes for a trader to be profitable is to make more in gains than they do in losses, obviously. With this in mind, you will take losses (especially at the beginning) and that is OKAY.
I have been trading now using both spot and leverage for approximately 7 months at the time of writing this and have managed to increase my portfolio with 500% profits. Some people will do better, most will do worse. I have done this on a very small budget, hence the name Poverty Trading.
If this topic is of interest to the audiences, I will further this series in much greater detail. Your feedback will determine whether I continue to write or not so if you believe this to be informative and useful, be sure to let me know.
