Thread

I do not condone this behavior, it's sad to shame people for their mistakes.

HOWEVER, there is a valuable lesson to be learnt here. Whatever you do, DO NOT overexposure! always have good risk management to prevent you from huge drawdowns.

[1/x] https://twitter.com/GriffinCharts/status/1302639880565133313

In my opinion, the people flashing with huge PNL's set the wrong example for other (newer) traders.

What matters is building your account in a strategic way to prevent huge losses and accumulate wealth in the long term. Your goal as a trader to win big and lose small.

[2/x]

Preventing big losses is key in trading and building your account.

you NEED a plan, you NEED invalidation levels. I don't care who you are or how much you trade with.

Letting your trade go down hoping it bounces is not a plan.

[3/x]

ALWAYS determine your invaldation before you enter the trade and make sure it falls within your margin of what you are willing to lose on a single trade.

For me that is usually not over 1-2% of my account.

The problem is most traders get greedy

[4/x]

They see everything go up, they overexpose. They're on a winning streak, euphoria and greed is taking over. No rational thinking

And then the market changes, they are overexposed, they are losing more than what they are willing to on a trade. And they want it back.

[5/x]

This usually snowballs from bad to worse.
Many with an underwater position don't want to take their losses hoping for a bounce that never comes.

Either that or revenge trading starts, taking more bad R/R trades without proper risk management. And they blow up.

[6/x]

So manage your risk, have a maximum loss set per trade that you HAVE to abide to. That way you know the worst outcome and can emotionally handle the loss.

Less risk of revenge trading or huge drawdowns.

Yes you earn less, but steady wins the race. Gambling doesn't

[7/7]