Not sure it applies here but made me think —one of the most disastrous things avg trader does is fixate on imaginary goals
“I need to hit 7 (or 8 or whatever) figs this cycle”
“Yeah I’m up $800k but I really want my first 7 figure win”
These goals often turn into primary drivers and cloud decision making
Think about it, if you’re dying for your first $100k win, with a $40k portfolio and you’re up $80k on a coin, you remove objectivity and focus on this thing (that doesn’t even matter)
You could lock in the $80k, and then be able to size more aggressively (still within valid risk structures) on future plays
But instead what often happens is perspective gets skewed, you’re trading your PnL instead of the coin, and in the end not only do you fail to attain your “first 6 figure win” but you set yourself up for an emotion fueled trading cycle on tilt — instead of 3x’ing your portfolio (which you likely factored your $80k position in and told yourself you made it to 6 figs), you have a chip on your shoulder feeling like the market owes you something — it doesn’t, and it will be quick to show you this, often by reducing your portfolio even further while you spiral through despair.
Similar concepts apply to overall portfolio goals, as you feel the window (of profitability within a cycle) closing, you start trading more aggressively, generally accruing losses and pushing yourself further and further from your goal, “forcing” yourself to go for Hail Mary style plays that 99/100 times won’t work out
Generally speaking with how outsized the returns in this market are (shitcoins) it should be relatively difficult to blow a 7 figure portfolio up assuming you have some semblance of edge, and can remain structured / disciplined through emotions. Realistically you never “have” to risk more than $2-5k to make 100k-1m on a given coin — if you risked even $10k every time you could afford to fail 100 times in a row, before sending $1m USD to 0, as long as you’re actually decent as Jingtao said, you should be able to identify at least 1 spot that can turn the $10k risk into $1m and cover any potential losses (elite traders being able to hit say 1/25 rather than 1/100, and reduce downside loss so it isn’t 25 $10,000>0 plays in a row between “hits”)
I think the problem, and why most people (myself included) blow up/have blown up, is impatience / inability to control emotions / racing against an imaginary clock — so to be clear when I say it’s “difficult to blow up” I mostly mean that in theory, in practice it’s very easy because it is extremely hard to remain disciplined
Legitimately the most important things imo in this market are
Control your emotions
Mitigate FOMO
Identify / execute on personal edge
Probably in that order
Happy to ramble further about any of this if anyone reads/cares, also happy to admit that this is just based on my personal experience / those in my circles, generally in trading “the best advice/insight” isn’t always the best for everyone