Who is Mori226???
Over the years, I have tried to share some insight into what it takes to be a successful trader/investors based my on my experience and journey thus far. First and foremost, trading/investing isn’t a quick get rich scheme. But, you heard it was a good way of making millionaires. You overtrade, take on too much risk, have initial success, but you are totally oblivious to your incompetence at trading.
You search for the HOLY GRAIL. You keep trying different trading methods, never sticking with one long enough to actually see if it works. You get on forums and live chat rooms and see other traders making money and you want to know why it’s not you.
You find out that the HOLY GRAIL is YOU. You realize it’s possible to make money with a simple moving average and nothing else if you can manage your capital and risks. You start to read books on the psychology of trading and start to identify with the characters portrayed in those books.
And during your journey, you take losses just as easily as you take wins. You now let your winners run to their target because you know your system makes more money than it loses. You learn there is no HOLD GRAIL in trading / investing, investing / trading is a game of probability, it’s not about your winning percentage, but your avg. win vs. your avg. loss that's important and it all about capital preservation and risk management.
So what does any of this have to do with Mori226 and who is Mori226 anyway?
If his detailed story is to be believed, the user, who identifies as “Mori226” on the popular social-media platform, has had a spectacular run during the coronavirus pandemic, and he walked his fellow traders on Reddit through every step of his journey.
“I cracked the 7-figure mark, and then some. I started with $35k in my ROTH IRA in late February/early March,” the trader wrote. He said he pulled out about $50,000 along the way.
How did he pull it off? Mori226 offered up some of the tips that worked best: Hold at least 50% in cash reserves at all times, don’t beat yourself up on bad trades, let the winners ride, never put more than 25% in any single position and learn to cut your losses, to name just a few.
“Try to stay disciplined. Learning to control. my emotions was key,” he said. “Losses don’t kill options traders, calculating your alternate universe net worth on your woulda-coulda-shouldas do.”
“Learning to get a sense of the current trend is the hardest part... Who is your best friend? The trend. Who gives you your giant pile of tendies [profits]? The trend,” he wrote, “Who buys your wife a new iMac pro? The trend. Never try to ‘outsmart’ the market. You’re going to lose you f*****g shirt.”
So now you know who is Mori226. Personally, I was more impressed by his nuggets of wisdom vs his 3000%+ ROI in the last couple of months. So how did he do it besides having rules around his trading? He made his bag with options which provide a ton of leverage. So when he talked about not having more than 25% of your cash in any single position and learn to cut your losses, I understood right away because that leverage can bite you where it hurts too. Although I don't know if he used mental stops or mechanical stops.
A stop loss (is risk management and capital preservation) is the single most underrated tool that will determine your destiny as a trader/investor. Stop losses can protect trades from becoming investments and/or investments from becoming headaches.
This post is my personal opinion. I’m not a financial advisor, this isn't financial advise. Do your own research before making investment decisions.
Posted Using LeoFinance
