RE: What role does luck play in trading?
Dear @josevas217
Interesting choice of topic Jose. Upvoted already :)
Truth be told, I absolutely dislike to rely on luck in almost anything I do. But it's sometimes so hard not to depend on luck when it comes to trading.
Recently I've been trying out new approach to day trading. I focus on several tokens listed on Binance (assuming none of them are scam). And those tokens which I'm focusing on have usually quite low volumes and often are rapidly jumping up (supply squeeze).
So I'm buying small amounts of those tokens and right away setting up sell order, which is 20-30% higher than purchasing price. My assumption is that if any of those tokens will "shoot up" all of suddent then I will dance in happiness.
It's perhaps a risky strategy, since I don't even bother to read about those tokens. So in a way I'm investing "blindly". But I only allocate several % of my limited capital into that kind of strategy. Because this tactic rely very much on luck.
And the problem I see is ... that so far this strategy is bringing me the best results. Comparing to any other strategy I've tried.
Cheers, Piotr
Well I can say that in trading nothing is left to chance.
I think to leave to luck is to buy a lottery ticket and be lucky to win it, that is luck, I do not buy lottery tickets,
Now as far as what you're doing, that's not tranding, that's 'holding' a coin.
I am absolutely sure that you are aware of the basic principles of doing what you are talking about, and one of those principles is that you should invest what you are somehow willing to lose, if you have that clear, you have already won the way..,