Emerson Fonseca: The Trader’s Perspective

Below are my thoughts regarding this post on a “trader’s perspective and mindset”. First of all, I would like to express respect to his own views while I do have my own. Always remember that the goal of a trader is to generate and maximize profits while managing risks. Fundamentals will never drive the price action of a market. Price action is always technical in nature ~ feelings, emotions, psychology.

The Trader’s Goal:

The trader’s goal is to maximize the folds of his money. I would rather risk my money to a market where I could see a lot of profit potentials that will give me 10x, 20x, 50x, 100x rather than 3x, 4x, 5x, 6x. But as a trader, I am happy enough to see profits regardless.

I don’t care about the fundamentals of a token/coin whether it has a good value store, based on scarcity, technology aspect, and whatnot. What’s important for me is enough technical considerations to analyze the market and will give me enough bias to consider putting my money and executing my positions.

Market won’t be driven by PR, news, tweets, gossip, etc. This is where many newbies and fundamentalists are wrong. Do not tell me the big boys in the market like Institutional players, market makers, hedgefund managers etc., are stupid enough to gamble their funds basing it on the news, PR, tweet etc.? Big boys in the market do not think that way. All markets have their own bull and bear cycles. Learn when to enter and when to exit just like the big boys in the market.

I do not mind putting my money even on the top 100 tokens that I could see a lot of potential in terms of profits. Many shitcoins do not have good technology (fundamentals) but look how the big boys and mature people play with it. Made so much money!!!

Market won’t be driven by PR, news, tweets, gossip, etc. This is where many newbies and fundamentalists are wrong. Do not tell me the big boys in the market like Institutional players, market makers, hedgefund managers etc., are stupid enough to gamble their funds basing it on the news, PR, tweet etc.? Big boys in the market do not think that way. All markets have their own bull and bear cycles. Learn when to enter and when to exit just like the big boys in the market. I do not mind putting my money even on the top 100 tokens that I could see a lot of potential in terms of profits. Many shitcoins do not have good technology (fundamentals) but look how the big boys and mature people play with it. Made so much money!!!

Even when the market is down.

Understand the chart. Bulls, Bears and Hogs always exist. Bulls can make money. Bears can make money. Hogs are the ones that always get slaughtered. Traders can make money when the market is going up AND EVEN WHEN THE MARKET IS ON A MAJOR DOWNTREND (Shorting).

Market is always justifiable for many great and experienced traders despite its situation. We have the chart that underlies our overall discipline, bias, strategy, trade execution. Discipline is one of the major traits of a great trader.

Having said that, I would like to congratulate those people who have made so much money in Dogecoin by buying and exiting it at the right time. That’s the most basic concept of trading. Buy low, Sell high, and of course while managing your risks.

NEM Philippines

This article is published originally as a Facebook post and republished with permission on BitPinas: Emerson Fonseca: The Trader’s Perspective

Columns, Op-Eds are opinion pieces on BitPinas contributed to the website by external writers who are also influencers in the space. See our Op-Ed policy here.