"Scott Melker" 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 Melker” is a speculator and trader in cryptocurrency, recently he told his followers, who number more than 56,000, that he had learned the hard way to become a successful investor.
As for all of his losses, most of them related to traditional markets, but he says the lessons he learned can help even in the cryptocurrency market.
Loss 2001:
Melker stated:
In 2001 I had to cash out from a mutual fund I bought upon graduation for a 40% loss to pay the bills.
It was completely my savings.
Melker - who also works as a DJ and producer who creates international compositions - added that he remained in debt for years after that, and stated:
The worst part is that I was in debt until 2006.
Then I booked a stadium tour in Japan so that I could pay all my bills and it allowed me to start investing again.
The advice given by "Melker" is that:
The lesson I learned is to never put everything on the market if you are going to need the money.
First, save your money to pay your bills for a few months to come.
https://twitter.com/Coinfather313/status/1201938678643396610?s=19
"Melker", who emerged from his first crisis, faced another unfortunate storm that began and escalated in its consequences in March 2009 when the global financial crisis witnessed the decline of the "Dow Jones" industrial index by 54% until March 2009.
Loss 2009
"Melker" lost 80% of his balance in the crisis, stating:
The stock market crash came at the worst time, when I was feeling safe and on my legs again.
But he seized the opportunity of lower prices and slipped demand when all valuations were negative and was able to buy some stocks at lower prices.
The advice given by "Melker" is here:
The price does not sell at the bottom.
I recovered everything and more by putting more money in the market.
Melker agrees with the idea that when the market fear and greed indicator falls, the market is more likely to rise than it is down.
Which is consistent with the idea of the 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 traditional financial markets without the cryptocurrency market, which is characterized by volatility and not yet fully regulated.
Loss of 2011
Melker suffered a loss again after betting with all the information he had about the worrying stocks of ARYx Therapeutics, Inc
And he maintained his confidence in these stocks, which were constantly declining because he relied on bad information.
So Melker decided to give up trading for a year.
In 2011
I went for the "all-in-one" method of the stock market and invested in a project whose share price fell from about $ 6 to $ 0.
I haven't done another trade in over a year.
The lesson learned from the experience of "Milky":
Never invest all you have in one project, and you should diversify.
One bitcoin investor disputes this advice, saying:
I fully entered Bitcoin in 2011 and today my things are very good.
But Melker simply replied:
"You cannot rely solely on luck."
https://twitter.com/scottmelker/status/1201937399489712128?s=19
Melker said that the purpose of narrating his investment experiences is to be considered by others and he shared them on Twitter, and he tweeted:
The whole reason I'm here is to try to help people avoid the same mistakes.
The inaugural version of his newsletter begins in late November with a statement telling:
These mistakes are largely the result of emotional decision-making and mismanaging risk.
Finally, from the advice provided by "Melker" with some behavior, the following are:
Learn with real money and don't rely on demo trading.
Do not trade without a stop loss.
Try to maintain a balanced investment portfolio.
Don't cling too much to losing deals.
Keep up with project news and be aware of it.
Don't risk more than you can afford to lose.
Don't risk all of your assets in one trade.
Do not use leverage.
Work on trading patterns and indicators that you know and understand.
Do not follow the flock.
