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1  Bitcoin / Bitcoin Discussion / Death of a happy monkey on: July 25, 2018, 07:08:47 AM
Every time I hear that another trader has committed suicide, I wonder why?  I read a note where death is presented on emotions and contrasts.  Ah, it was a well-known and successful trader.  Ah, I decided that my success at the stock exchange was due solely to my exclusivity.  Ah, took increased obligations.  Ah, I lost it.  Oh, tragically passed away.  To live and still to live ... Probably, and it is necessary to write articles-requiems.  But the essence is different.  Just a happy monkey died.  I explain why.  Trading can be broken down into rational and emotional components.  Our goal is to look for formulas and logical conditions that will be able to exploit the rationality of the market to our advantage.  We know about emotions what they are.  They are much more than rational.  We will never control them.  Emotions of the market at times will be for us, at times - against.  I measured the rationality of the market in several ways, and always got a result of 20-30%.  Hence, 70-80% of the market is emotion.
What we have.  If we can allocate a rational component of the market, then, on average, out of 10 coins, we will steadily take 2-3.  The remaining 7-8 coins will be distributed by the emotional market at their own discretion.  Want to - everything will add to your moneybox.  Wants - takes away, thereby taking away not only all the winnings, and leading you to a good loss.  When and how much you will fall from market emotions, no one knows.  On average, each of us will receive equally joys and sorrows from the market.  But those coins that were earned on the rational component of the market, will give a long-term win.  In the situation of market emotions, we become monkeys who, by pressing the keys, have no idea what they are doing.  But, if there are infinitely many monkeys, then there is the possibility that at least one of them will write "War and Peace".  This monkey will simply be luckier than her brothers.  And here there is a substitution of concepts.  If a trader has become a happy monkey, he will rather accept the idea of ​​his own exclusivity than the idea of ​​banal luck.  Wrong messages lead to wrong actions.  There are thoughts that it will be stable to drive and always.  Therefore, it is possible to increase risks and attract investors' capital.  In fact, when a lot and very lucky, you should expect that soon luck will end.  Profits will be replaced by losses.  There will be a question about "what to live on"?  And investors will want to return their money so much that they will go to any crime.  Moreover, the army of fans will very quickly throw off their idol from the pedestal.  Crushed emotionally, and even physically, a trader can not find a way out of this situation.  It's scary to trade.  How to repay debts is incomprehensible.  In addition to trading, nothing more can do.  So the next once a happy monkey dies.
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