One Current Market Observation:
On October 10, 2025, crypto suffered the largest forced-deleveraging in its history. Roughly $19 – 20 billion in positions were liquidated within hours as altcoins cratered. The incident spoke to how much leverage can build up in a system over time when traders grow complacent and assume markets will keep going up.
One Nugget of Trading Wisdom:
Excess leverage is often a failure of psychology, rather than a failure of analysis. Most traders employ leverage during periods of good times when they are psychologically comfortable, but prospective returns are lower. If leverage is employed, it should be during periods of bad times when psychologically uncomfortable, but prospective returns are higher.
One Reflective Question:
Where are you taking existential risk? Perhaps in low-float shorts? Perhaps in using leverage? Perhaps in not having assets segregated outside your trading account?
One 1%-Improvement Idea:
Build a separate nest-egg so you can always live to trade another day. Too many traders focus on getting the richest, rather than on getting rich the safest way possible.
One Reading Recommendation:
Morgan Housel is one of my favorite authors who always writes about one of my favorite subjects: behavioral finance. His new book, The Art of Spending Money: Simple Choices for a Richer Life, is an awesome read that helps you reflect on what actually matters.
Forget outcome. Let’s get better this month.
