4 Comments

complex stuff explained, thank you Joe for the education.

Expand full comment

Thanks Joe. I got liquidated on a 3x leveraged Perp. I thought I had enough collateral to hold my breath for a while until my bet came back up. Well I was Wrong. Always Have a STOP LOSS on a perp if you are going to not watch it constantly. I Lost thousands on the return of what the liquidated assets are worth today just 2 months later after being liquidated. The sad part is I had enough capital to hold cash spot but wanted to use leverage as a convenience. After the liquidation, I took a month off from trading and chalked up the loss as education expense or ignorance tax. Then I moved on and now I am as focused as ever. The experience sucked but I am a better trader for it. Don't be a sucker and if you fall... Its ok. Just get back up as a learned person and profit more form the harsh experience and profit in the long term both mentally and monetarily.

Ohh and this Joe McCann guy for whatever reason (which I am grateful for) cares about us little peeps and wants us to learn, think critically and profit from the circumstances that we are in. So it might help you to listen to what he has to say from time to time as it applies to your situation.

Expand full comment

In the last year, I had made over 80,000 USD with BTC, and with stupid leverage trading, I lost it all during May 2021 crash. Just left with $ 500, over 99% loss!

I started to feel like I'm a bad trader and it was all luck that made me so much money. I was on my way to financial independence and this dream is again too far away.

I have always believed in myself and motivated myself to learn from my mistakes. However, this is 4th time I have done the same mistake - overtrading and not taking profits.

Agree, it's simple maths, I knew about gambler's ruin and sucker's bet but still kept going. Your article is simple and short and still summarizes the leverage mirage. Fast money is mostly an illusion!

PS: I still strongly believe in Bitcoin. #HODL

Expand full comment

Nice simple and crisp message, well delivered - Don't be a sucker!

Expand full comment