Keeping your money Humble

Humble Money can only be humble if you use it correctly. A servant will only humbly serve its master as long as the master doesn't abuse, or mistreat his/her servant. The same is true with your Humble Money. If you don't manage your Humble Money, it won't be humble for long.

One of, if not the greatest, key to profitable trading is managing risk. I recently posted an article on how to manage risk when trading Bitcoin, but I wanted to be more generic. Risk management applies to a whole lot more than fake, virtual coins. Without risk management, trading becomes pure gambling. Imagine your in Vegas with your friend. Your friend is playing roulette and he lays down $100 on black. He has a smaller chance of winning than losing, but his profit and loss margin are the same. That represents a horrible trade, but lets demonstrate a great trade. If you told the house, I will play roulette, but I will only risk 10% every turn. Of course the house wouldn't accept because that means you would only need to be right 1 out of 9 times to profit. However, that is a great trade. Apply the same rules to trading and you are a profitable trader.

Trading stocks and crypto is what I call "Predictable Gambling". Sure you can guess where the price will go, but nobody is sure. A decent trader will only be right 60% of the time, but if he/she has proper risk management, profit will be made. One of my main goals for this blog is to make trading seem simple and fun. If you trade without emotions, and use common sense, you'll have Warren Buffet on the phone asking for advice in the near future.