"Stop Losses Are Stupid"

Louis Sykes
December 7, 2022

Don't listen to people who claim to know the future.

They're all full of shit.

Technical analysis isn't a mystical prediction machine. This is nothing but a simple, repeatable, and foolproof process for managing risk.

Whenever we're looking to buy a stock, a cryptocurrency, or any other publicly traded asset, we always prioritize where we're wrong rather than how much money we could make.

If you haven't learned by now that risk management is paramount when managing money, you're beyond saving at this point.

For us, most trades are rather simple.

We're not overly sophisticated in our approach. We identify levels that, if breached, would invalidate our thesis while having a predetermined plan for taking profits if the move goes our way.

While this rather simplistic approach may be suboptimal, let's not forget that some of the most sophisticated funds on the planet that were chasing perfection lost everything in this market.

Having a repeatable and reliable risk-management protocol that you're comfortable executing puts you above 90% of the competition.

We don't need to overcomplicate this.

Caroline Ellison told you that stop-losses and technical analysis were stupid. Look how that ended, lol.

We must remember that participating in public markets will always be a privilege, not a right.

I think this only underscores our responsibility to be humble as investors. Trading isn’t a God-given right, and your next trade could very well be your last.

Some of the most intelligent and sophisticated traders on the planet lost everything in this market because they let ego get in the way of judgment and sound risk management processes.

When your money's on the line, you need to swallow your pride. The market can take away everything you have in a single moment, and the worst trade of your life could be the next one if you’re not careful.

These markets may be volatile. But, with the right mindset and well-conceived strategies, you can come out on top.

[hide_from accesslevel="all-star-charts-crypto"]If you want to see how we're staying on top of crypto markets, you can start a 30-day risk-free trial.

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Thanks for reading, and please let us know if you have any questions!

Allstarcharts Team

 

 

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