"Accounting" crime" committed by 90% of traders"! 📊🚨
As an accountant, I see 3 mistakes that kill your portfolio and cause permanent financial deficits:
First: Mixing profits with capital.. Withdrawing profits immediately kills "compound growth". Treat your profits as a mandatory reserve to increase the size of your portfolio.
Second: Stubbornness with dying assets.. Holding onto a collapsed currency is a waste of "opportunity cost". Learn to "write off" the loss immediately to free up liquidity for a winning opportunity.
Third: Lack of cash liquidity.. Going all-in with your entire portfolio is a forced liquidation of your liquidity. A smart accountant always leaves 20% as a safety valve to seize market crashes.
The conclusion from #Expert_Numbers: If you don't manage your portfolio like a professional company, you'll end up just a "number" in the statistics of losers.
Evening question for the audience of numbers 👇:
What is the hardest accounting decision you've made in your portfolio? Is it "writing off" a painful loss or "holding" early profits?
#Financial_Culture #Risk_Management #Binance #Write2Earn #Trade_Smart #Write2Earn