@curlyhair_dev@curlyhair_dev I’m building a fintech startup I’ve already incorporated. I’m currently validating the product and looking for a technical co-founder/early engineering partner. I’d love to show you the prototype and discuss the opportunity
Here’s one of the best risk management strategies to keep your account alive, even in the worst market conditions.
Instead of risking a fixed amount, risk a percentage of your current account balance.
For example, 10% of a $1,000 account is $100. If you lose that trade, your balance drops to $900. Your next risk is now 10% of $900, which is $90.
If you lose again, your balance drops to $810, and your next risk becomes $81.
This way, your risk automatically decreases as your balance drops, helping you manage drawdown and preserve capital.
It isn’t just to make money, It’s to stay in the game long enough to make it. 🧘🏽♂️
Recency bias is when you judge your entire reality based on what happened recently.
For example, someone treats you well for five years but disappoints you once, and suddenly you begin to question their entire character.
A trader wins five consecutive trades and thinks they’ve mastered the market, or loses five trades and believes their strategy no longer works.
Someone makes money for three months and starts living as if the money will never stop coming.
The danger of recency bias is that you allow a temporary experience to influence your long-term judgment.
One bad experience doesn’t erase years of progress, and a few good days don’t guarantee a successful future.
Learn from your recent experiences, but never let them make you forget the bigger picture.
If you’re trying to buy a car, and you turn the ignition on, shortly before the you crank the engine, if the “check engine” display doesn’t come up on the dashboard, that’s a red flag.
Real red flag.
All dashboard lights must pop up first, then go off when the engine starts.
It is better for the check engine signal to be permanently on, than for it not to come up at all, there are ways they cut those corners but you won’t know. Stay vigilant and observant.
As the world continues to advance, we’ll eventually reach a point where car accidents rarely result in death bcos technology will be so advanced that, in most cases, the worst outcome might just be an injury.