From Loss to Lessons: Navigating the Financial Wilderness
Since I began my investment journey in 2021, I’ve witnessed both rewarding victories and crushing defeats that define the financial market. My journey has been marked by both the hope of life-changing successes and the harsh truth of significant losses. Here’s what I’ve learned and am going to learn.
The Allure of Quick Gains
The market’s promise of quick gains lured me in with tales of overnight successes. I ventured into trading on high leverages, high volumes without understanding risk management.
Leverages, Volumes, and Risks
I traded with leverages that were too high, and I was trading with volumes that were too big. I was taking on risks that I couldn’t afford to lose. I was playing with fire, and I got burned badly. I lost a significant portion of my capital in a single trade.
Hold up, the leverages are not the problem, the volume is the problem when it gets too big. The leverage is just a tool to amplify your gains or losses. The problem is when you use the leverage to trade with a volume that is too big for your account. But there is something we don’t see, the leverages made profits looking gigantic on 100% 200% 500% even 1000% profits, it boosted my confidence and greed while with the same volume, a 20 30% profit would not have the same effect.
Now comes to the risk management, I was trading with a volume that was too big for my account, and I didn’t have a proper risk management strategy. I was risking too much on a single trade, and when it went wrong, it went terribly wrong. I lost a significant portion of my capital, or even worse, I lost everything.
- Leverages: While not being the direct problem, they magnified my volumes to levels my account couldn’t sustain.
- Risk Management: My lack of it led to major capital loss in a single trade.
The massive profits from high leverage fueled my overconfidence and greed, setting the stage for further mistakes.
The Emotional Rollercoaster
The emotional rollercoaster was intense. The highs of potential gains were quickly replaced by the lows of significant losses. I was on a constant emotional rollercoaster, swinging between euphoria and despair. I was addicted to the adrenaline rush of trading, the thrill of making money, and the fear of losing it all. I was living in a constant state of anxiety, always on edge, always on the lookout for the next big trade. I was consumed by the markets, obsessed with the idea of making it big, of striking it rich. I was blinded by greed, and it cost me dearly.
Trading is a emotional rollercoaster that swings between the excitement of the potential profits and the pain of losses. I was stuck in a loop of emotional trading, which is also known as gambling.
Getting Out of the Wilderness
I once checked my trading history and saw that I have lost a significant amount of money. The money that could have been spent for myself, my family, or even for a better cause. I was devastated, I was ashamed, I was angry. I was angry at myself for being so reckless, for being so foolish, for being so greedy. I realized that I needed to change, that I needed to get out of this financial wilderness. Isn’t Bank’s savings ROI is just ~6-15% per year (where i am), isn’t the main goal of investing is to beat the inflation rate and grow your wealth? I realized that even if I got 10% profit in a month, that is still a huge profit and esspecially when it is consistent. I realized that I needed to be more disciplined, more patient, more rational.
- Discipline: Implementing a disciplined approach to trading, focusing on consistency over quick wins.
- Patience: Understanding that even small, consistent gains can be significant in the long run.
Market Realities
Yes, technical analysis, fundamental analysis, money trends, and news. They are only tools for assisting you in making a decision, not the decision itself. I lost a lot of money during a difficult period of market volatility, unexpected news, and money-making whales. I accept my losses and won’t join in now that everything is surging.
The market’s unpredictability taught me:
- Technical Analysis: A tool, not a decision-maker.
- Acceptance: Learning to accept losses and understand market dynamics without panic.
The Scam of Micro Marketcap Cryptocurrencies
You may know Shiba, Moodeng,.. They are just a few of the cryptocurrencies out there that did well, out of a place where over 99% of projects are scams. I thought I could get in something like that.
I worked with some people who created some cryptocurrency, I was paid nicely for my work of course. But I got an offer of getting my buy slot early with promising of huge profits. I thought that I worked with them, they paid me, they are not scammers. I was wrong. I invested a small amount of money on the first time, it went nice and I got some balances. I got trusted and invested more, and more, and more. The dream of changing my life overnight was back. I invested a significant amount of money and they just rug pulled. I lost it, I got scammed. I was so ashamed of myself for being so naive and foolish. I hated myself.
The scam of micro marketcap cryptocurrencies taught me:
- Due Diligence: Always research and verify before investing in any project.
- Trust: Be cautious of trusting others, especially in the crypto space.
Psychological Lessons
Accumulating wealth requires mental insight:
- Patience and Discipline are keys to consistent wealth growth.
- Rationality: Make decisions based on facts rather than feelings.
- Humility: Recognize the market’s unpredictability.
- Awareness: Recognizing and avoiding emotional trading dangers and scams.
Conclusion
My journey has taught me invaluable lessons about risk management, emotional discipline, and the slow, steady path to financial success. True wealth lies not in money but in resilience, knowledge, and the capacity to recover from setbacks.
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