How do you manage Bitcoin price risk?

[as.exchange]

I have always been interested in derivatives and structured products, and wanted to get community's opinion about how do you manage Bitcoin price risk? While there are different strategies with options, futures, perpetuals, etc., including some people simply ignoring market swings and just forever HODLBTC; with BTC price volatility, it's not that pleasant to see that today you have $1k in BTC, tomorrow it's $10k, and then $500...

There are various researched on crypto derivatives market, but it seams that according to CoinDesk, there are mainly 2 products - perpetuals, and futures (which are nearly same, with exception of maturity), and recently options started to emerge... Isn't that pity that the so-called "innovative finance market" came only that "far" by offering what has been know for decades in traditional ("old fashioned") markets?

[1714900209]

1714900209

[1714900209]

1714900209

[1714900209]

1714900209

[Upgrade00]

it's not that pleasant to see that today you have $1k in BTC, tomorrow it's $10k, and then $500...

Bitcoin market is volatile, but not nearly as this description paints it to be as we have been getting progress more stable with time.
I am part of those who simply hodl and ignore market swings as I consider that to be the option with the least risk in consideration of the fundamentals of the network.
To manage price risks; You could try swing or scalp trading or any of the other investment options available, but you should understand that they all come with their own level of risk in relation to the market, some higher than others.

If you're looking to understand more about how the futures and options market works in relation to Bitcoin, check out these threads;
Everything you wanted to know about BTC futures but were afraid to ask!
Everything you wanted to know about BTC options but were afraid to ask!

Isn't that pity that the so-called "innovative finance market" came only that "far" by offering what has been know for decades in traditional ("old fashioned") markets?

Bitcoin is not a product which was meant to add innovations into centralized investment ventures, so it is not surprising that there are limited options in that regard. Bitcoin itself is the innovation.
If you are looking for innovative offers, you can research on the DeFi market, although I would advice you do not waste your time with that.

This post may be more fitting in the speculation child board

[as.exchange]

it's not that pleasant to see that today you have $1k in BTC, tomorrow it's $10k, and then $500...

Bitcoin market is volatile, but not nearly as this description paints it to be as we have been getting progress more stable with time.
I am part of those who simply hodl and ignore market swings as I consider that to be the option with the least risk in consideration of the fundamentals of the network.
To manage price risks; You could try swing or scalp trading or any of the other investment options available, but you should understand that they all come with their own level of risk in relation to the market, some higher than others.

If you're looking to understand more about how the futures and options market works in relation to Bitcoin, check out these threads;
Everything you wanted to know about BTC futures but were afraid to ask!
Everything you wanted to know about BTC options but were afraid to ask!

Isn't that pity that the so-called "innovative finance market" came only that "far" by offering what has been know for decades in traditional ("old fashioned") markets?

Bitcoin is not a product which was meant to add innovations into centralized investment ventures, so it is not surprising that there are limited options in that regard. Bitcoin itself is the innovation.
If you are looking for innovative offers, you can research on the DeFi market, although I would advice you do not waste your time with that.

This post may be more fitting in the speculation child board

Thanks for the reference to the treads, will definitely check them out!

While you are absolutely right that BTC and crypto-market has been stabilizing recently, but still it's volatility when just recently it was @$4.8k and now nearly @$20k - that's 4.8x ROI. Most of the professional hedge funds with multi-billion AUM can just dream about that in such period of time Yet, there's no guarantee that tomorrow some new fake news won't break the streets (like the last one that Chinese gov seized assets of PlusToken scam, while actually those BTC were already sold before the announcement) and BTC won't crash again. If you are true long-term HODLer - no problem for you, but if you are a common person with short investment horizon like 1-2 max 3 years, you are unlikely to be happy about such swings. If you are a mid-/large-company dealing in BTC - you won't be happy either to see sharp changes of your assets; if you are long-only fund - also; if you are large exchange like Binance, Huobi, Coinbase, etc. - having your profits and assets fluctuating by 4-5x times within a year isn't a pleasant experience too.

As for trading... well, that's a separate topic for discussion I guess. In short-term you might earn something or hedge something, but eventually, you won't be able to beat the market. Because the the crypto-market is already in semi-strong form efficiency (Market Efficiency) (yes, some small coins might be experiencing weak-form efficiency), so theoretically you won't earn sustainably > than market. And if you are a common person - your success chances are even less.

As for DeFi... - completely agree with you. Most of the current ones, especially some popular derivative DeFis / DEXs are launched by kids who know nothing about derivatives, about running a business, nor about tech security. That's why trading volumes start to decline recently, as people get more educated about those flaws.

But for you, as long-term hodler, why wouldn't you for example buy ultra-long-term call options and just keep them?

[Upgrade00]

Yet, there's no guarantee that tomorrow some new fake news won't break the streets (like the last one that Chinese gov seized assets of PlusToken scam, while actually those BTC were already sold before the announcement) and BTC won't crash again. If you are true long-term HODLer - no problem for you, but if you are a common person with short investment horizon like 1-2 max 3 years, you are unlikely to be happy about such swings.

If you are a mid-to-long term holder with a span of 1-3 years, you also would not need to be worried about such intermittent price changes caused by such news. The market effect of the plustoken scam was short lasting and the market quickly rebounded and regained its value. The Bitcoin market is a muti-billion dollar one, and would be able to resist a bit of negative news. There are few events that would be able to have a long term effect on the price of Bitcoin and they are unlikely to happen.

If you are a mid-/large-company dealing in BTC - you won't be happy either to see sharp changes of your assets; if you are long-only fund - also; if you are large exchange like Binance, Huobi, Coinbase, etc. - having your profits and assets fluctuating by 4-5x times within a year isn't a pleasant experience too.

Any company holding their assets in Bitcoin would trust the fundamentals of it. They recognize the volatility and also the ability of it to increase significantly in value overtime which it has done. A quick look at companies holding Bitcoin would show virtually all of them are up in their investments, it makes it much easier to manage the volatility.

About trading, I do not know much about it and would need to research more on form efficiency.

But for you, as long-term hodler, why wouldn't you for example buy ultra-long-term call options and just keep them?

Quite frankly, I do not know if I would consider myself a long term holder; I said, I simply hold and ignore price fluctuations.
But I would much rather hold actual bitcoins than options, futures, bonds or any other stuff that lets you access it.

[pooya87]

it's not that pleasant to see that today you have $1k in BTC, tomorrow it's $10k, and then $500...

The HODL thing works simply because what you described here is impossible. If your $1k goes to $10k it can come back down to $5k but not $500. The other scenario is when your $9k goes to $10k then comes down to $5k which only depends on your entry point.
People always miss the fact that noone who has ever bought bitcoin in a dip lost any money. Those who lose money are the ones buying the top (specially in bubbles) and have to face the bubble burst (like buying at $20k in 2017 and face the 2 year long bear market).

[as.exchange]

If you are a mid-to-long term holder with a span of 1-3 years, you also would not need to be worried about such intermittent price changes caused by such news. The market effect of the plustoken scam was short lasting and the market quickly rebounded and regained its value. The Bitcoin market is a muti-billion dollar one, and would be able to resist a bit of negative news. There are few events that would be able to have a long term effect on the price of Bitcoin and they are unlikely to happen.

Actually investment horizon of 1-3 years is normally pretty short, as traditionally in investments long-term is like 20-50 years. And 1-3 years is a decent amount of time to destroy all your wealth. Like imagine you bout @ $1k in Dec-2013, and have 3 years left (for whatever reasons - retirement, urgent large expense, some problem, etc.), and if you hold for 1y, you get to sell @ $300, and if 3y - @ $900, so that's -10% market price, plus inflation, plus FX rates, plus opportunity costs, plus etc., etc., and it turnes out to be greater than -10%.

Any company holding their assets in Bitcoin would trust the fundamentals of it. They recognize the volatility and also the ability of it to increase significantly in value overtime which it has done. A quick look at companies holding Bitcoin would show virtually all of them are up in their investments, it makes it much easier to manage the volatility.

About trading, I do not know much about it and would need to research more on form efficiency.

I'm not insider of Binance, or those, but I'm pretty sure as they have US$ expenses / US$-denominated expenses (salary, rent, tax, marketing), while they might be paying in BTC for some part, most of it, especially for shareholders, they would rather keep US$. For example, if you are regulated Sequoia Capital, you cannot accept your share in crypto-exchange to fluctuate that much, nor you can accept BTC-dividends. Therefore, I believe they might be heavily engaged in hedging operations with derivatives.

But I would much rather hold actual bitcoins than options, futures, bonds or any other stuff that lets you access it.

Could you elaborate on that please, why you wouldn't if it gives you same exposure, you know the contract / security is stored safely and you can lose it only in the same way you would lose actual BTC (phishing, hack, scam, etc.). Then why not to hold what can give greater % with same privileges?

[as.exchange]

it's not that pleasant to see that today you have $1k in BTC, tomorrow it's $10k, and then $500...

The HODL thing works simply because what you described here is impossible. If your $1k goes to $10k it can come back down to $5k but not $500. The other scenario is when your $9k goes to $10k then comes down to $5k which only depends on your entry point.
People always miss the fact that noone who has ever bought bitcoin in a dip lost any money. Those who lose money are the ones buying the top (specially in bubbles) and have to face the bubble burst (like buying at $20k in 2017 and face the 2 year long bear market).

I wouldn't agree that decline to $500 is impossible. Of course it's by no mean market prediction (I personally don't think we will see $500 in long-term), but it is well possible. Once our grandchildren (or earlier?) get quantum computers at their homes the same way we have PCs and phones now, where would be BTC? But under normal conditions, for sure - it won't go to $500 so easily (20x decline)... That's for BTC, but are you that sure about sh*tcoints with <$5-10 cap?

Besides, your definition of "buying dip" will vary from investor to investor. For someone who was born just today, BTC @ $50,000-100,000 can well be "buying the dip", and eventually, if all the optimistic predictions about BTC come true - recent $19.5-20k was also "buying in a dip". We can see what was the bubble and what wasn't only in retrospective after bubble bursts, and until then it's usually just another high-growth asset.

[Upgrade00]

Could you elaborate on that please, why you wouldn't if it gives you same exposure, you know the contract / security is stored safely and you can lose it only in the same way you would lose actual BTC (phishing, hack, scam, etc.). Then why not to hold what can give greater % with same privileges?

I personally prefer to hold actual bitcoins than to access it using a third-party service. Bitcoin is a decentralized peer-to-peer currency which gives holders autonomy and pseudo anonymity, all of these intrinsic qualities are lost when one chooses to use the services of a centralized platform, the likes of which offer such investment options. I'm also interested in the usage of Bitcoin to pay for services.

For the most part, I agree with other points you made on this reply.

Once our grandchildren (or earlier?) get quantum computers at their homes the same way we have PCs and phones now, where would be BTC? But under normal conditions, for sure - it won't go to $500 so easily (20x decline)... That's for BTC, but are you that sure about sh*tcoints with <$5-10 cap?

You shouldn't use a situation that would put global security at risk. Quantum computers would not be peculiar to Bitcoin and would potentially expose lots of sensitive information.
About shitcoins declining; that would actually be good for the market. A lot of coins over the years have fizzled out or their devs did an exit scam and a lot more in the future would follow suit, just the same way we have seen the top 10 coins by market cap (or at least 9 of them) switch places as some fell out of that range.

P.S, Writing consecutive replies is against forum rules. You should rather edit (merge) your new reply into the old one

[as.exchange]

I personally prefer to hold actual bitcoins than to access it using a third-party service. Bitcoin is a decentralized peer-to-peer currency which gives holders autonomy and pseudo anonymity, all of these intrinsic qualities are lost when one chooses to use the services of a centralized platform, the likes of which offer such investment options. I'm also interested in the usage of Bitcoin to pay for services.

I see your point. In that case, when you actually use BTC to make payments (what it was created for initially), then definitely derivatives are not the best approach to do that. Even though, as current merchants index their BTC prices to market rate in US$, it could benefit to hedge risks, if you are holding like hundreds or thousands of BTC. But yes, if you are someone who cares about privacy, anonymity and independence, then holding crypto in own wallet with priv keys is the only and best solution.

You shouldn't use a situation that would put global security at risk. Quantum computers would not be peculiar to Bitcoin and would potentially expose lots of sensitive information.
About shitcoins declining; that would actually be good for the market. A lot of coins over the years have fizzled out or their devs did an exit scam and a lot more in the future would follow suit, just the same way we have seen the top 10 coins by market cap (or at least 9 of them) switch places as some fell out of that range.

For these parts - totally agree. But unfortunately as years pass, the number of shitcoins just keep increasing. Still very surprised to see that someone truly invests in new ICOs/IEOs/etc. (I don't mean the speculators & P&D groups). Until the market is cleared, probably many more years will pass, as even exit-scam projects' tokens still might be tradable, even though with collapsed liquidity. Just like some people knowingly what they do, invest in ponzis & pyramids with the thoughts that they are the smartest ones and can do what others couldn't. Until then, I think derivatives could be beneficial to that market as their main purpose is price reveleance, information discovery (spot price will react slower than derivative), and risk transfer from those who don't want it to the risk seekers, which can improve liquidity and opportunities to exit illiquid shitcoins.

P.S, Writing consecutive replies is against forum rules. You should rather edit (merge) your new reply into the old one

Sorry, didn't know - will keep in mind for future replies.

[mk4]

For these parts - totally agree. But unfortunately as years pass, the number of shitcoins just keep increasing. Still very surprised to see that someone truly invests in new ICOs/IEOs/etc. (I don't mean the speculators & P&D groups). Until the market is cleared, probably many more years will pass, as even exit-scam projects' tokens still might be tradable, even though with collapsed liquidity. Just like some people knowingly what they do, invest in ponzis & pyramids with the thoughts that they are the smartest ones and can do what others couldn't.

Don't expect them to be gone any time soon. If anything, the number of shitcoin projects is actually likely to increase as Bitcoin(and the cryptocurrency space) grows more as time goes.

To simply put, scams have existed since the dawn of humanity, and it will continue to exist until the end.

[MoreStamps.Global]

To be honest, I don't manage any kind of price risk. Just holding them will also provide a good return. Besides, lending can be profitable as well if you are really concerned about accumulating Bitcoins. Otherwise, selling high and buying low may not be worth it if one strongly believe in Bitcoin from future perspective.

[as.exchange]

For these parts - totally agree. But unfortunately as years pass, the number of shitcoins just keep increasing. Still very surprised to see that someone truly invests in new ICOs/IEOs/etc. (I don't mean the speculators & P&D groups). Until the market is cleared, probably many more years will pass, as even exit-scam projects' tokens still might be tradable, even though with collapsed liquidity. Just like some people knowingly what they do, invest in ponzis & pyramids with the thoughts that they are the smartest ones and can do what others couldn't.

Don't expect them to be gone any time soon. If anything, the number of shitcoin projects is actually likely to increase as Bitcoin(and the cryptocurrency space) grows more as time goes.

To simply put, scams have existed since the dawn of humanity, and it will continue to exist until the end.

Unfortunately, you are correct. As long as there is "human nature", there will be all the kinds of scams where someone earned their worth in the hard way, while others trying to just scam them or steal everything. Shitcoins are just one of many other ways to do so.

That's the reason we at as.exchange don't issue any kind of own token / currency, etc. (not advertising, but just mentioning). No need to issue new shitcoin when it doesn't serve any real purpose.

To be honest, I don't manage any kind of price risk. Just holding them will also provide a good return. Besides, lending can be profitable as well if you are really concerned about accumulating Bitcoins. Otherwise, selling high and buying low may not be worth it if one strongly believe in Bitcoin from future perspective.

Just holding is a good strategy overall too. But from financial theory by using "passive investment strategy" (just buy and hold), you will earn just what the market earns at best. However, with "active investment strategy" (actively managing investment portfolio, rebalancing, investing in other things, protecting the downside, etc.) you might well beat the market and earn more. However, you also can earn less.

For "selling high and buying low", actually it's not purely about believing or not in BTC future, it's simply exploiting market inefficiency. Like our CEO who does strongly believe in BTC, but he firstly bought BTC @ around $1.4-1.6k, and then sold all in 2018 @ $19.5-20k, and later re-entered in 2020 @ $4.8k. Being able to identify good opportunities and taking advantage of them is probably one of the reasons we are able to launch our current company. So just imagine what you could do, if you would be actively managing your price risks also

[Coin_trader]

While there are different strategies with options, futures, perpetuals, etc., including some people simply ignoring market swings and just forever HODLBTC; with BTC price volatility, it's not that pleasant to see that today you have $1k in BTC, tomorrow it's $10k, and then $500...

It's more not pleasant to see a liquidated position rather than having a high amount value in future. BTC is for long term and everybody holding it is looking for the future value. Why they will swing trade using futures and perp while they can have a sure profit in the long run without any risk of being liquidated.

Applying the principle of pro trader to BTC holder is a bit questionable. Because the majority of BTC holders knows that Bitcoin is a phenomenal investment especially those who enter at a very low price.

[nemey]

In crypto, everything is uncertain. And it depends on how we manage the assets that we have. I myself am still focused on being able to control my emotions and also do not easily believe all predictions especially those that don't make sense. I do day trading when the market is green. However, if it is red I choose the safe path with hold. And indeed, you will rarely see the market so you don't panic.

[Lorokan]

I think the easiest way to manage bitcoin price risk is to answer the most easy questions about bitcoin investment, why do you hodl bitcoin? is it for long term (years to come) or to take profits for the short term (within 2 weeks to 3 months); This decision will help you to know that the best advantage is to buy bitcoin during the dip(limiting your risks) and then you sell when it experiences price hikes. BUT YOU HAVE TO BE CERTAIN WHAT YOU WANT with bitcoin to aid your decision making.

[masterzino]

I have always been interested in derivatives and structured products, and wanted to get community's opinion about how do you manage Bitcoin price risk? While there are different strategies with options, futures, perpetuals, etc., including some people simply ignoring market swings and just forever HODLBTC; with BTC price volatility, it's not that pleasant to see that today you have $1k in BTC, tomorrow it's $10k, and then $500...

There are various researched on crypto derivatives market, but it seams that according to CoinDesk, there are mainly 2 products - perpetuals, and futures (which are nearly same, with exception of maturity), and recently options started to emerge... Isn't that pity that the so-called "innovative finance market" came only that "far" by offering what has been know for decades in traditional ("old fashioned") markets?

Futures are not so innovative. People are hedging sugar, wheat, etc. from centuries. https://en.wikipedia.org/wiki/Futures_exchange

Most of the time, I'm looking at crypto as crypto and not comparing the USD value. It's like buying a working van. Do you look for its current USD value daily?

When I need to hedge against USD anyway, I'm using Bitmex.

[as.exchange]

I don't have much capital. so my strategy is usually short term, I buy bitcoins when they are down and sell when the price is not too high but safe. When there are signs of falling, I will transfer Bitcoin to USDT to keep my capital.

Small capital shouldn't stop you from actively managing money Long-term capital growth is usually through small but stable and continuous compounding of returns.
Why you wouldn't use options for example (among other ways) instead of spending on transaction fees, spreads, etc. by changing BTC<->USD?

It's more not pleasant to see a liquidated position rather than having a high amount value in future. BTC is for long term and everybody holding it is looking for the future value. Why they will swing trade using futures and perp while they can have a sure profit in the long run without any risk of being liquidated.

Applying the principle of pro trader to BTC holder is a bit questionable. Because the majority of BTC holders knows that Bitcoin is a phenomenal investment especially those who enter at a very low price.

You are absolutely correct about all points. I am preparing a long-read post about the topic you mention that with most (not all though) derivatives you can quickly get liquidated, but if common people would have a proper way to avoid that, while hedging the downside somehow, they might be engaging more actively in risk management. It's like with Picasso paintings - you might believe in it or might not, might believe in long-term value or not, but you probably gonna take a good care of it to make sure nothing deteriorates its value.

In crypto, everything is uncertain. And it depends on how we manage the assets that we have. I myself am still focused on being able to control my emotions and also do not easily believe all predictions especially those that don't make sense. I do day trading when the market is green. However, if it is red I choose the safe path with hold. And indeed, you will rarely see the market so you don't panic.

Predictions are always wrong. The efficient market hypothesis (EMH) dictates that any available information is already priced in the market prices, so if someone says "BTC will go up / (down) by X due to Y" - it's already in the price when you open terminal to check it. And with chaos theory, it becomes worse that any second someone might say / do something new, and the price might change grammatically - and this wasn't priced in the market before as was not known, thus no prediction could foresee that. But yes, playing with emotions (especially of others) and finding market inefficiencies can be a good source for earnings.

I think the easiest way to manage bitcoin price risk is to answer the most easy questions about bitcoin investment, why do you hodl bitcoin? is it for long term (years to come) or to take profits for the short term (within 2 weeks to 3 months); This decision will help you to know that the best advantage is to buy bitcoin during the dip(limiting your risks) and then you sell when it experiences price hikes. BUT YOU HAVE TO BE CERTAIN WHAT YOU WANT with bitcoin to aid your decision making.

True, but you never know when is "the dip" comes.

Futures are not so innovative. People are hedging sugar, wheat, etc. from centuries. https://en.wikipedia.org/wiki/Futures_exchange

Most of the time, I'm looking at crypto as crypto and not comparing the USD value. It's like buying a working van. Do you look for its current USD value daily?

When I need to hedge against USD anyway, I'm using Bitmex.

I know that futures are not innovative at all That was my point that crypto-market virtually has nothing now for properly managing risks - futures, swaps, perpetuals, options, and... that's all?
As for the van - you still will be doing some maintenance, right? Otherwise it will be broken pretty soon.

[CryptopreneurBrainboss]

Some people simply ignoring market swings and just forever HODLBTC; with BTC price volatility, it's not that pleasant to see that today you have $1k in BTC, tomorrow it's $10k, and then $500...

Holding is the most effective way to manage the risk the volatality of the market brings but it isn't as easy as many people make it seem, the example you used above is a perfect scenario (although highly exaggerated) of what holders go through especially as you can't totally ignored the market as the news is always in your face. Every price movement is been discussed which makes you always monitoring your portfolio. The altcoins market is what could possibly give you the example you highlighted.

In crypto, everything is uncertain. And it depends on how we manage the assets that we have. I myself am still focused on being able to control my emotions and also do not easily believe all predictions especially those that don't make sense.

Not everything, the fact that the market moves in cycle of ups and down is certain and with that knowledge you can work on the perfect strategy to deployed in managing of your risk assuming you're not into the idea of holding.

[Nellayar]

I have always been interested in derivatives and structured products, and wanted to get community's opinion about how do you manage Bitcoin price risk? While there are different strategies with options, futures, perpetuals, etc., including some people simply ignoring market swings and just forever HODLBTC; with BTC price volatility, it's not that pleasant to see that today you have $1k in BTC, tomorrow it's $10k, and then $500...

There are various researched on crypto derivatives market, but it seams that according to CoinDesk, there are mainly 2 products - perpetuals, and futures (which are nearly same, with exception of maturity), and recently options started to emerge... Isn't that pity that the so-called "innovative finance market" came only that "far" by offering what has been know for decades in traditional ("old fashioned") markets?

If I have 10K usd came from 1k dollar investment. I totally sell all my portfolio and wait until a new crash happens again. The reason why many traders are losing their trades is because of greediness. We feel how easy it might be when we experience a win streak towards our buy and sell method. In result, we think inconsistently making a bad decision from our trades. Cryptocurrency market is really volatile, you may become millionaire today or homeless for tomorrow. In order to become successful, we must incorporate correctly our strategy, emotions into a consistent trades.

[as.exchange]

Holding is the most effective way to manage the risk the volatality of the market brings but it isn't as easy as many people make it seem, the example you used above is a perfect scenario (although highly exaggerated) of what holders go through especially as you can't totally ignored the market as the news is always in your face. Every price movement is been discussed which makes you always monitoring your portfolio. The altcoins market is what could possibly give you the example you highlighted.

I do agree with every point you made, except for only one "Holding is the most effective way to manage the risk the volatality" - forever HODLing is de-facto taking the entire price / market risk without any active participation or management. It's like as if investment funds would "buy a company / stock... and just watch". Yes, it's the way to get rid of risk of losing money on trading, but it assumes you gonna live for 100 years and will wait for BTC to reach whatever is promised. Even in that case actually if / when BTC becomes $100,000 or $1,000,000 per 1 BTC, the actual purchasing power of $100,000-1,000,000 might be same with today's $0.10... So your 1 BTC at that point might be able to buy you what you can buy today with 10 cents. As we cannot know the future, irrespective of personal beliefs about value of an asset, all possibilities are possible in the future.

If I have 10K usd came from 1k dollar investment. I totally sell all my portfolio and wait until a new crash happens again. The reason why many traders are losing their trades is because of greediness. We feel how easy it might be when we experience a win streak towards our buy and sell method. In result, we think inconsistently making a bad decision from our trades. Cryptocurrency market is really volatile, you may become millionaire today or homeless for tomorrow. In order to become successful, we must incorporate correctly our strategy, emotions into a consistent trades.

True, but imagine if after $10k, market never corrects again, and you keep watching it as it approaches your "to be $1,000,000". But yes, you are very right that many people are losing the game because of greediness... that's the human nature. With the rest, I believe you said everything very correctly.