Nobody quits because of one bad trade. They quit because of forty small ones nobody counted.
Spread on entry. Spread on exit. Funding if you held overnight. Slippage on the fill you didn't examine. None of it is dramatic alone, all of it is relentless together.
Run the arithmetic honestly. Someone taking three round trips a week at a quarter percent of friction each way is paying roughly 78% of their account in costs across a year of activity. That figure sounds impossible until you actually multiply it out.
Which means a strategy that's mildly profitable on paper can be reliably negative in practice, purely through the cost of participating.
Bitcoin at $78,481 and Ethereum at $2,483 charge the same toll as anything else, people just notice it less because the moves are slower.
Now the other side, because the obvious conclusion is also wrong.
Trading less isn't automatically better. Plenty of people hold too long precisely because they've been told activity is expensive, and end up sitting through drawdowns that a small amount of action would have avoided.
The real question isn't how often you trade. It's whether each trade has an expected value large enough to survive the toll it pays on the way in and out.
Most people have never once calculated that number for their own account.
Have you?
A personal observation, not a recommendation to buy or sell. Do your own research and carry your own risk.
#Altcoins
Spread on entry. Spread on exit. Funding if you held overnight. Slippage on the fill you didn't examine. None of it is dramatic alone, all of it is relentless together.
Run the arithmetic honestly. Someone taking three round trips a week at a quarter percent of friction each way is paying roughly 78% of their account in costs across a year of activity. That figure sounds impossible until you actually multiply it out.
Which means a strategy that's mildly profitable on paper can be reliably negative in practice, purely through the cost of participating.
Bitcoin at $78,481 and Ethereum at $2,483 charge the same toll as anything else, people just notice it less because the moves are slower.
Now the other side, because the obvious conclusion is also wrong.
Trading less isn't automatically better. Plenty of people hold too long precisely because they've been told activity is expensive, and end up sitting through drawdowns that a small amount of action would have avoided.
The real question isn't how often you trade. It's whether each trade has an expected value large enough to survive the toll it pays on the way in and out.
Most people have never once calculated that number for their own account.
Have you?
A personal observation, not a recommendation to buy or sell. Do your own research and carry your own risk.
#Altcoins