‘Toshimoku’s Trading Tips & Tricks

#SatoshiMoku — CarpeNoctom
21 min readJan 17, 2018

Here’s how trading begins and evolves for most successful traders:

Losing all your money every trade

Depending on how quickly you adjust your risk management style, this phase can last for months, or even never end. FOMO helps encourage this phase by selling bottoms and buying tops. You risk your entire account on one trade trying to win the lottery. This is closer to gambling than it is trading.

Breaking Even (BE)

Phase when risk management begins to work but starting to become too risk averse. You become very good at analyzing downside risk but not good enough at understanding the appropriate amount of risk to allow for higher gains.

Small Wins

System is working. Risk management is working. Emotions are preventing trades from running their course because you’ve never been on top of a trade before. You close the trade early by moving stops too much, not using a target that is large enough, or you panic close. Often, it takes many small wins to realize what is wrong with this style of trading.

Big Wins

God Tier of trading which takes most people years to achieve. You still have losing trades and BE trades but a majority of your trades are large winners, which far outweigh the losers. You have variable position sizing appropriate for risk. You take multiple positions and close 50–75% of your positions at various predetermined levels while letting some of the winner run.

It’s important to spend your time losing money, learning a trading system on your own, and establishing rules for your trading style.

Remember — Big losses are always more difficult to recover than small losses!

What is Your Mindset?

Many people, including myself initially, buy cryptocurrency, then follow price very closely, which is a gateway to essentially becoming a day trader driven by emotions. Trading, or active management, is not for everyone. In fact, it’s really not for most people. Over 90% of all traders lose money and will not be…