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- How to prevent this "$100 million" f*ck up
How to prevent this "$100 million" f*ck up
And why stop-losses are a crucial component of trading
Perhaps you saw that one trade you thought was gonna shoot for the moon…
So you gathered everything you put aside and dropped it all into that one trade you thought would be lucky and crossed your fingers…
But then the trade blew up right in your face and you lost everything.
I might be the first one to tell you that it’s not all doom and gloom because there’s something really valuable in having your trades fail hard…
And if you’ve had a story anything like this one, you’ll understand the sheer panic that sets in when that one trade you thought was gonna skyrocket suddenly plummets.
When you see those red candles across your screen, you think you f*cked up big-time.
Listen, you might have lost a lot on a recent trade you had high hopes for.
But there’s something deep the best investors in the world will never share with you…
And it’s that even the best investors in the world fail with some of their trades.
Jesse Livermore is arguably one of the best traders of all time... shorting the 1929 market crash and building a fortune of over 100 million USD...
But by 1934, he'd lost everything.
There are trades some investors think are gonna skyrocket then these trades send their entire fortune down the drain.
You have to wise up to the fact that you may f*ck-up, even if you're a world-class investor...
And the way I prevent this from happening is by using stop-losses.
You aren’t gonna succeed with every trade.
But you don't wanna be the next Jesse Livermore... and stop-losses are a simple way to sell your existing trades if they fall too low so you don't burn your whole retirement fund.
You may have lost everything once before...
Take this as a valuable lesson to up your security when you're trading and prevent another "$100 million" f*ck up.
Talk later and have an awesome week.
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