What a day in cryptoland! Every analyst that so much as glances at cryptos has been furiously updating their charts in order to figure out the recent moves. Pullbacks were expected, and then defied. Lines of resistance fell aside, taking up the support banner in some cases.
But what next? Trading isn’t a game of absolutes, except in examining the past. Each trader attempts to identify the fractal nature of market price, sentiment, various indicators, etc., in an effort to gain an edge. Yet, no matter how good they are at analysis, they’re still only stacking probabilities. The market remains fickle, unpredictable and unmerciful.
This is why account management is so important. In fact, it’s more important than being right. A good analyst can be correct 60% of the time and take huge losses with poor money management while a mediocre analyst could be right 30% of the time and realize huge gains due to fantastic money management.
Where do you fall? Can you accurately assess your own skills? In 2017 everyone thought they were experts. Then 2018 showed many (most?) of them that they were not. Rightly assessing your skills (or lack thereof) can be a massive part of building a good investment and trading plan. Be honest. Make a solid plan. Then be nimble and humble in examining your plan, especially if you get punched in the nose.