Do you want to know why novice traders lose millions while institutions laugh from their VIP seats?

The reality of trading is different: while everyone rushes after headlines and rumors, the big players simply watch as billions disappear in seconds. Just last week, record liquidations surpassed 19 billion dollars in leverage after the fall of #bitcoin .

Are you ready to stop being part of the crowd and start playing seriously?

You already know who came out winning. It wasn't you or me: it was them, the big players who identified liquidity zones and took advantage of the frenzy of collective greed. The result? Retail traders dreaming of vacations while watching their positions vanish. A real example: a trader first lost 35k for not respecting his risk management and ended up losing 70k in a matter of minutes by increasing his position, hoping for a miracle.

Does that sound familiar? Probably yes.

Many of us were part of that wave of liquidations because we thought 'if it goes up more, I'll regret not having put in more.'

The Real Threat: Your Mind, Not the Market. It is not about how much the market can fall, but how many mental traps your own brain sets for you.

That is called FOMO (Fear Of Missing Out) and is documented to exhaustion: our biases, those little brain traps, are programmed to sabotage us at critical moments. But I DO NOT COME TO TELL YOU HOW YOUR BRAIN WORKS; I come to tell you how you can start managing your risk and capital against the traps of your brain every time it tells you: PUT IN MORE, WE'VE GOT THIS ONE.

Risk Management: Beyond the Stop Loss

Here goes the silenced truth: Risk management is much more than just putting a stop loss. It is a total defense system that includes:

  • Percentage of risk per trade: Did you know that professional traders rarely risk more than 1-2% per trade? But what few tell you is that, in negative streaks, many reduce that percentage even further.

  • Dynamic position adjustment: When you are in drawdown, reduce the size of your trades. This protects your capital and prolongs your 'shelf life' in the market (this is known as 'Kelly Criterion' and 'equity curve trading', little-known techniques that adjust risk according to your account's recent performance).

  • Trade number management: Define how many losses you can tolerate per day or per month before stopping. The best have a 'daily stop,' and if they reach it, they simply close the platform.

  • Smart stops: Not all stops are the same. Some professionals use 'volatility stops' (adjust the stop according to current volatility), others use 'time stops' (if the price does not move in a certain time, they exit the trade).

  • Advanced trailing stops: Beyond the typical trailing stop, there are methods like the 'ATR trailing stop,' which moves according to the actual volatility of the asset. This prevents you from getting kicked out of the market due to noise.

  • Psychological hedging: Almost no one mentions it, but some successful traders open small positions in the opposite direction to reduce emotional impact and avoid impulsive decisions.

Learning from the Masters:

Traders like Paul Tudor Jones, Jim Simons, and Steven Cohen are not famous just for their results, but for their obsession with risk control.

  • Paul Tudor Jones: Never risks more than a small percentage and always thinks of defense before offense.

  • Jim Simons: Extreme diversification and automatic position adjustments based on mathematical models.

  • Steven Cohen: Centralized supervision, strict limits, and constant adaptation to the environment.

A little-known secret?

Many of them spend more time analyzing their losses than their gains. They know the key is to survive to trade another day.

Backtesting, Recording, and Constant Optimization

Test with AI, record each operation, review your mistakes, and adjust your system.
Only then will you discover the true weaknesses of your method and be able to protect yourself from fallacies or any market traps.

Risk management is not just about surviving; it is about evolving.

"The true trader is not the one who earns the most, but the one who gets up the most times and the fastest after falling. In this game, only those who learn to lose well survive." PTJ

It's reading time.

I love #bitcoin