Simon Tan
Musings of a curious developer ت
Trading Tips
How to suck less at trading ft. me

First and foremost, none of these are financial advice. I will not be responsible for any monetary losses should you choose to follow these tips.

Now with that out of the way, we can get on to the good stuff! This article contains a collection of lessons that I learnt the hard way from my past few years of investing with cryptocurrencies. Some of these lessons are extremely expensive and I hope that by penning it down, I can actively refer and reflect on it should I feel emotional again when it comes to trading.

TopicLesson
Risk ManagementFor the love of god, please determine your stop loss price every time before you purchase a shitcoin and fucking stick to it. The goal of the game is to safeguard your capital, not to lose it all to greed. UNI is your latest mistake and you are still losing your profits as you type this. There are many opportunities to make money but you can’t make any if you don’t have any capital left!
Risk ManagementPlease also determine your take profit levels. I don’t care how you came up with these values, as long as you stick to it and take profit. I’m pretty sure you won’t be forgetting the CND lesson any time soon right?
Risk ManagementThe market doesn’t move based on what you hope. Instead of changing the narrative to suit your position, change your position to suit the market.
BorrowingIf you borrow money and sell it to do something, you are effectively shorting your loan asset and longing whatever you are buying. Remember when you borrowed USDT to sell for KNC for yield farming just before the market crashed? Yep, wasn’t that an expensive 40k lesson?
BorrowingHolding KNC to farm vs borrowing KNC to farm is 2 completely separate issues. With the former, you are naturally exposed to the price volatility of the KNC token but with the latter, you only need to manage the borrow interest rates and your yield interest rates. Of course if KNC appreciates too much then you also need to reduce the size of your position otherwise you might get liquidated.
HodlingHolding a token means you are naturally long on it. Don’t long a token for no reason, you’re better off holding ETH / USD / BTC

Last modified on 11 October 2020.
Attributions, if any, can be found here.