Powerful

  Trading a wide range of assets can feel like the smart, ambitious move. Every day, headlines scream about some new coin or stock breaking records. For amateur traders especially, it looks like an open invitation: “Your strategy is working—why not test it somewhere else?” whether you are using a lending protocol, trading spots or perps I’ve learned the hard way that this mindset is usually a mistake. One of the most valuable lessons I’ve absorbed is that there will always be good opportunities you miss. Accepting that fact has been genuinely game-changing. In trading, capital is king. Protecting it is your first job. The Circle of Competence Matters Warren Buffett’s idea of the “circle of competence” applies perfectly here. Limiting the number of pairs or assets you trade is a core part of solid risk management. The market only moves in two ways: With a clear trend Sideways When you stay inside your circle, you don’t just execute your strategy—you start to understand how those spe...