"Scott Milker" or what is known as the "Wolf of All Streets" revealed how he lost everything and recovered it three times, and the lessons he learned from these experiences.
Scott Miller is a trader and trader in cryptocurrency and an investor in “Texas West Capital” recently he told his more than 56,000 followers that he learned the hard way to become a successful investor.
For all of his losses, most were related to traditional markets, but he says the lessons he learned can help even in the cryptocurrency market.
2001 loss:
Milker stated:
In 2001 I had to exchange money from a mutual fund that I bought upon graduation in exchange for a loss of 40% to pay bills.
It was my entire savings.
"Milker" - who also works as a "DJ" and producer that creates world music tracks - added that he remained in debt for years after that, and stated:
The worst part was that I was in debt until 2006.
Then I booked a tour of a stadium in Japan, after which I could pay all my bills and allowed me to start investing again.
And the advice given by "Milker" is:
The lesson you have never taught is to put everything on the market if you need money.
First, save your money to pay your bills and for a few months to come.
Milker, who emerged from its first crisis, was faced with another unfortunate storm that started to escalate in March 2009 when the global financial crisis witnessed the Dow Jones Industrial Average decline by 54% until March 2009.
2009 loss:
Milker lost 80% of his balance in the crisis, saying:
The stock market crash came at the worst time, when I was feeling safe and standing on my legs again.
But he seized the opportunity to drop prices and decline demand when all valuations were negative and was able to buy some stocks at low prices.
And the advice given by "Milker" here:
Do not sell and prices are on the bottom.
She recovered everything and more by putting more money on the market.
Milker agrees with the idea that when the market's fear and greedy index drops, the market is likely to rise more than it falls.
Which corresponds to the idea of global investor "Warren Buffett":
"Be afraid when others are greedy and greedy when others are afraid."
But it should be noted that this advice may be compatible with the traditional financial markets without the cryptocurrency market, which is characterized by volatility and lack of full regulation yet.
2011 loss:
Millerk lost again after betting all his information on ARYx Therapeutics, Inc.'s troubling stocks.
And he kept his confidence in these stocks that have been constantly declining because he relied on bad information.
So Milker decided to give up trading for a year.
In 2011
I went to the "all-in-one" method in the stock market and invested in a project whose share price fell from about $ 6 to $ 0.
I have not done another business for over a year.
A lesson from the Milky experience:
Never invest in everything you own in one project, and you must diversify.
A Bitcoin investor opposes this advice, saying:
I got my full money in bitcoin in 2011 and today it is very good.
But Milcker simply answered:
"You can't just count on luck."
“Milker” said that the purpose of recounting his investment experiences is to take others into account and share them on Twitter, tweeting:
The whole reason I am here is trying to help people avoid the same mistakes.
The opening version of his newsletter begins in late November with a statement saying:
These errors are largely the result of emotional decisions and poor risk management.
At the end, some tips given by Milker with some behavior include the following:
Learn with real money and don't rely solely on demo trading.
Do not trade without stop loss.
Try to maintain a balanced investment portfolio.
Don't hang on to losing deals.
Keep up with project news and be aware of it.
Don't risk more than you can afford.
Don't risk all that you have in one deal.
Do not use leverage.
Work on trading patterns and indices that you master and understand.
Do not follow the herd.