Wednesday, March 23, 2016

Prepare for the worst and the worst Martin Shkeli joke you ever heard

Martin: I have a horrible migraine. Prison guard: A bottle of Advil is $750,000
It's easy to lose sight of the dangers of trading when things are going well. A few good trades and you are invincible.

But it only takes one bad trade to wipe all the profit away.

Anybody remember KBIO?

A novice trader shorted the $2 stock. The next day it gapped up eight hundred percent. His account went from plus $36,000 to -$107,000 in one night. 

In twenty-four hours his life changed to the point of cowardly begging for money on social media.

He should have planned like a stoic and practiced premeditatio malorum, translated as a premeditation of evils.

In other words, prepare for the worst.

If the above mentioned KBIO trader had planned like a stoic, he probably would not have taken that trade or he'd have at least position sized in a way that protected his account. 

I know what you are thinking: that's quite the negative attitude. 

Living as a stoic does not mean you are a negative person.

Think positively but prepare for the worst while planning for success.



If you would like to learn more about how I trade, receive my nightly focus list with market analysis, setups and trade alerts, sign up at BullsonWallStreet.com. 

1 comment:

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