Some Banter b/w Hsaka and CBS. @HsakaTrades@ColdBloodShill
Q- Who is the best Trader you know?
https://t.co/8pYfTNhCZQ
Sorry CBS if you want I'll delete it.
Discretionary traders should think carefully about instrument selection
As in spot vs spot margin vs perps vs options and combinations therein
The obvious components are cost, liquidity, and capital efficiency. The non-obvious components are drawdown tolerance, volatility tolerance, and trade management.
From personal experience:
Perps are excellent for intraday trading, but for swing trading and larger bets my performance was worse because I would over-manage those positions and be much more sensitive to drawdowns etc.
Spot/spot margin are great for larger bets and higher time frame swing trades. I'd find myself less concerned with the tick-by-tick movements so I could actually hold the trade, but whenever I've tried to LTF trade those instruments, I would get complacent with trade management.
The tempting default answer is perps for liquidity + to size up, but your bigger position isn't helpful if it means you sabotage yourself by managing it poorly
I'm certain that you can think of trades that were great ideas but poorly executed - instrument selection may be the culprit
Everything I use to trade top to bottom
Analysis, Execution, News, Organization & Comms
Analysis
1. @tradingview - For Market Scan & Plans
2. Aggrv3 https://t.co/41xxxMcnHp - Tape Reading - Real Time Flows
3. @MMT_Official_ - Liquidity Scan
Execution
4. @InsilicoTrading - Only terminal I use for crypto
News
5. Twitter list - Custom list loaded into twitter pro
6. Forex Calendar https://t.co/tOzEqsGUV0
Organization
7. @NotionHQ - Everything from daily play to 10 year plan all stored in here
8. Simple notepad - Handwriting helps me solidify ideas in my mind & think through things
Communication
9. @discord - Chat with the homies
10. @telegram - Chat with the homies(just not starting to use tele)
I have used a lot of tools over my 10+ years trading and this is what I have stuck with
If you guys like this kind of stuff I can share the templates next
Work Life Balance
Something every trader will struggle with
Whether it's the pressure to catch all the moves or just brainrot on socialmedia, most of us end up suck with a terrible balance in life
Here's some of the things that have helped me
1. Defined Work Hours(Monday to Thursday) - Vast majority of my trade volume takes place within a three hours span around NY session everyday. Yes sometimes I am required to trade/manage or adjust a position on the weeks but I have hard set rule that I only day trade during my normal hours
As a trader on a 24/7 market, if you don't have a framework to step away, you'll be glued to the screen. This is obviously not good for you
2. Learn to have fun - Something I always teach is that if you are serious all the time, you're going to get cooked. I feel strongly that those who learn to have fun with the bros along the way will make it further. I'm always blending my serious work in with a few jokes in our chat
3. Get active - It doesn't matter whether its something simple like going on a walk everyday or playing an intense sport, just get active. We are not designed to live such stagnate lives, we are supposed to move.
"No man should remain amateur in the matter of physical fitness. It is a shame for a man to grow old without seeing the beauty and strength of which his body is capable." - Socrates
Modern man exists in a constant state or fight or flight. Push your body then allow time to relax
4. Passions - If your only passion in life is making money you're going to crash and burn. Life isn't about money, life is about experience. I know it sounds impossible when you are grinding your trading but keep the goal in the back of you mind to do other things
I love trading through and through but its a means to an end for me
Closing Thoughts:
I'm coming up on my 11th year trading soon(yes I'm old)
Sometimes , when the time is right, I'll chose to focus on work over play but I always find a way to return to having some fun
You only get one life so work hard but time some time for yourself
I have found time and time again that when I step away from my work, my best ideas come to me. So allow yourself time to think for once away from the noise
I hope this helps
The older I get in this game, the more I realize @Trader_Dante was right:
“Finding and taking excellent trades is not the hard part. The hard part is trying not to do anything stupid in between them.”
My edge isn’t my entries, it’s my ability to do nothing when there is nothing to do.
Actually the most dangerous point in career (if someone has the potential to be really good) is the moment when they are good enough to work on auto-pilot. They can easily do most of the tasks and after 2-3 years realize that they are not significantly better than before. You need to remind yourself once in a while that you need to push to the boundaries with your development and learn new things or be absolutely great at what you do on a daily basis.
I think Thiccy described really well on the Threadguy stream why no one ever manages to leave this place:
After hitting his number he took 6 months off and tried to play other games, hang out with friends, do sports, etc., only to realize that the outside world (non-online) move so slowly. It's like they live 10 years behind. Online you have this insanely fast feedback loop, and which is why the frontier of humanity thrives in here playing all these games. Also it helps to get rewarded PnL-wise, and in the combination with getting instant feedback from some of the smartest people on the internet, it's very hard to leave.
For myself, the plan was to quit after the 2024 cycle. But I changed plans. I spend 12+ hours daily in here already, and can't see myself suddenly doing a full stop. This is what I am good at (obviously way behind many OGs), but still, I think that as long as I enjoy it, then why not keep doing it.
I was also telling myself that I would quit at $1m. But then I got there in 2021, and at this point, it's not about making the sickest gains (obviously I don't mind it), but this is a game that is mentally stimulating and very competitive too. I will never become as great as many of the traders or DeFi degens on CT, but I think as long as I enjoy it myself, can evolve and become better + earn something from it, then I am fine with that.
Spitballing trading pearls and platitudes, part 1:
1) Your goal is to capitalize on what the market gives you. It works on its own time, not yours.
2) You'll know when you're wrong and/or you've mis-sized the trade. Feelings of confusion and immobility strike you fast. This is the queue to exit.
3) If you're human, a loss will tilt you. Some more than others. Once you've exited, you're pegged. Algos are monitoring for your footprint. This is a lose-lose situation. The only thing you can do is call it a day. I repeat: 'THIS IS A LOSE-LOSE SITUATION'. You will not win tilt trading.
4) If you're on a heater/win-streak, those parabolic gains always end in a blow off top unless you take some off time to mitigate overtrading and market obsession. Recalibrate and go back in.
5) TWAP's don't work.
6) If you've been away from the markets for some time, do not jump into the saddle immediately. Get bac in-sync with the markets.
7) This is for the degens, if you're in profit on a trade, the first mean reversion back to your entry gives you optionality to size up on a trade. If the markets disagree, exit -- no biggie. But if the markets agree with you, this is quite the effective method to run up sub-accounts.
8) For swing and HTF traders who barely check into the markets. If you know your way around data analytics/charts, it takes one-look at a chart to know if it's a go/no-go for a trade. You look at it, and think 'yep...'
9) Don't fade CT when they are in consensus. We're retards, but negative * negative = positive. This made no sense.