Four hallmarks of a good discord crypto trading signals community: (updated)
Transparency: The community should be transparent about its track record, methodology for generating signals, and the performance of its past signals.
Professionalism: The community should be run by professional traders with a proven track record of success in the market.
Responsiveness: The community should have a responsive team that is available to answer members’ questions and provide support.
Consistency: The community should provide consistent, high-quality crypto trading signals that can be relied upon to make informed trading decisions.
New Directions For our Crypto Discord Group
Our Crypto Discord Community provides support and encouragement for Crypto Bloggers.
As a community, we encourage and guide all ethical writers at any level (beginners are welcome and the most accomplished writers are encouraged to mentor others).
We create a collaborative atmosphere where we can all take the next step toward our success while supported by the enthusiasm of the group!
We are seeking to add new writers bringing different perspectives about crypto, investing and personal wealth building.
Our editorial team embraces diversity, values our writers, and helps them find their writing voice in a collaborative platform.
Personal and authentic experiences are helpful both for the writer and for the reader.
We each come to crypto for different reasons because we are each on a different stage of our financial abundance. Some are working two jobs while learning about crypto while feeding a family, while others are lifting from a strong income stream to greater wealth.
Many authors will be new students who may be beginners creating their first investment journal, while other authors will be wealthy with years of successful trading experience.
A trader can also see if the leaders are committed to providing crypto signals with a good track record, answering questions and providing guidance in a professional manner, giving access to important market insights and responsive in addressing member concerns.
Our discord, Digital Currency Traders has been one of the best crypto trading signal Discord groups since 2017 because it is well moderated and free of spammers.
Crypto Trading Signals Discord
The power of Discord for following crypto trading signals comes down to interacting with other traders who are studying the same trading system.
These interactions can be extremely beneficial to speed up your learning and shorten your journey to becoming a crypto millionaire. Here are a few key benefits of participating in the Digital Currency Traders community of crypto traders who are all working to master the same system:
Collaborative Learning: By discussing the trading system and sharing information with others, traders can learn from one another’s experiences and gain a deeper understanding of how the system works as we pass through each stage of Altcoin Seasons. This can help you prepare to manage risk, as well as to refine your own trading habits.
Mentorship: Experienced traders in the community can provide valuable guidance and mentorship to newer traders. This can include providing tips and strategies for success, as well as offering feedback on trade ideas and setups.
Support: Participating in a community of traders can provide a sense of camaraderie and support, which can be especially important during times of market volatility or when traders are facing difficult risk control moments.
Access to High-Quality Signals: A strong community can also provide access to trading signals that match the trading plan. Like training wheels on a bike, trading signals are a valuable tool for traders. Digital Currency Traders provides guidance through all 5 Stages of The Trade, covering entry and exit signals, as well as more specific details on position size and risk control.
Performance Monitoring: When studying the history of the community chat, a trader can gain insights on how the community leaders have been providing a good crypto trading signals community over a long period of time. Look for a thread with a history of their #winning-trades. Look for signs of transparency when dealing with complaints, consistency in posting the same trading approach, professionalism in keeping the community free of spam, and responsiveness to user questions. The signs that you have found one of the best crypto discord communities can be easily be tracked by scrolling back through the past interactions of the community.
Discord Crypto Trading Signals community
Click to join the Digital Currency Traders (FREE) Crypto Trading Signals Community
Overall, participating in a Discord Crypto Trading Signals community of traders who are all working to master the same system can be a valuable way to improve trading performance and develop a deeper understanding of how Altcoin Seasons come and go.
By learning from others and sharing information and insights, traders can gain a competitive edge and be better equipped to navigate the often-volatile crypto markets.
In this article, we discuss 5 good reasons to use trading bots to automate your crypto trading strategy – at the end we’ll share unexpected disadvantages you should be aware of.
have become an increasingly popular tool among cryptocurrency traders looking to automate and optimize their trading strategies.
These software programs are designed to execute trades on behalf of the trader, using algorithms and technical indicators to make decisions based on the trading signal definitions.
Why automate your crypto trading strategy?
Time-saving: The first principle of wealth building is that your money should be working for you while you do other things. One of the biggest advantages of using trading bots is that they do the unending menial task of watching prices for you. If you find yourself watching the charts or constantly checking the markets to manually execute trades, consider learning how to set up a bot to make trades on your behalf – or find some proven copy trading profiles and follow their automations.
24/7 trading: Crypto markets never sleep and using a trading bot allows you to assign your money the task of monitoring price and executing trades even when you are not available. This can be especially useful for investors who want to trade a slow long term, trend following approach.
Diversification: A series of crypto trading bots across a portfolio of digital assets makes it easy to diversify into a new crypto portfolio at the start of the next Altcoin Season – and also to manage the work of closing trades at the right time. We have set up our trading bots to follow the proven Crypto SmartWatch strategy for different portfolios of coins. By diversifying your portfolio with a small position in many coins, you can spread exposure across different assets, thus increasing the potential for a single investment with massive moves boost your overall returns.
Backtesting: Another advantage of using trading bots is the ability to backtest different strategies. Our methodical backtesting allows better confidence to identify when Altcoin Season is starting and ending, helping us fine-tune the settings and timing of the trading bot operations. Our Crypto SmartWatch historical research is now invaluable for crypto traders to optimize their trading strategies in 2023. Improve your understanding of risk control in trading crypto currency trends before you start trading with a bot.
Emotionless trading: One of the most common mistakes made by traders is allowing emotions to cloud their judgment. This can cause trading mistakes when we are winning and trading mistakes when we are losing. A well-planned trading bot can eliminate this problem as trades are executed based on pre-set rules and algorithms rather than emotions, opinion or second-guessing. A Botted strategy will remove emotions such as fear, greed and excitement, which can often lead to impulsive trading and higher risk.
Our research has shown that trading bots can provide advantages when you correctly automate your crypto trading.
Trading Bots can be especially useful for investors who wisely take a hands-off approach to trading. Experienced investors leave their money to manage the work involved in watching the markets to capture opportunity at the correct time.
However, it is important to note that like any trading strategy, using a trading bot comes with its own set of risks.
Disadvantages Of Using A Bot To Trade
While trading bot services and the best copy trading platforms offer a range of options and tools, they also come with some disadvantages to be considered. Some of the downsides of using copy trading or following trading bot include:
Lack of flexibility: Trading bots rely on pre-set rules and algorithms to make trades. This can be beneficial in some cases, but it also means that the bot is not able to adapt to changes in the market or unexpected events. (For example we know that our trend following strategy, the Crypto SmartWatch, will take repeated losses in a sideways market so we have manual review of the activity of all our our bots.)
Lack of human judgement: Trading bots can also lack human judgement, as they make trades based on pre-set rules and algorithms. We must understand all of the conditions of the market and how our bot will respond so that we might pause the bot operation in some market conditions.
Risk of hacking: Trading bots are operated through software, which means they are vulnerable to hacking attempts. This will always put your funds and investment at risk, so we recommend funding your trading exchange with only a small part of your overall cold storage assets. Always take the time to set up 2FA and strong random passwords on your exchange accounts. Keep your cold storage digital assets on a hardware wallet.
High costs: You may think that many of the best trading bots on the market come with a high cost but you can select from a range of low price and high return bots to follow on 3commas or BitGet.
Lack of transparency: Most trading bots operate in a ‘black box’ with complex sounding things going on behind the scenes, which can make it difficult for traders to know exactly what trades the bot is making and why. The Crypto SmartWatch approach is completely transparent and easy to understand. We can explain why every trade is placed!
Are Trading Bots Even LEGAL?
It’s important to also note that depending on the jurisdiction you’re trading in, there might be some legal and regulatory restrictions around the use of trading bots. It’s important to be familiar with these before using bots, to ensure compliance with regulations.
Trading Bots and Your Tax Obligations
Using a trading bot will not change your tax classification. The classification of your trades and investment activity for tax purposes will be determined by
how often you trade and
the amount of profits you earn.
Large crypto profits will affect the tax bracket you fall under and thus change your tax obligation.
It’s also important to note that, depending on the jurisdiction and the way you use it, the use of a trading bot could change the way your profits are classified by the tax authorities.
Beware Of Day Trading Bots
For example, if a day trading bot is used for scalping, it may be classified as a business activity and may be subject to different tax rates and regulations than if it were used for long-term buy-and-hold investments.
It is always recommended to consult with a tax professional in your country to understand the tax implications of your crypto trading activity and how the use of a trading bot may affect it.
Keep Trading Records The Easy Way
It is also important to keep accurate records of all your trades and report them correctly on your tax return in order to avoid any issues with the tax authorities.
It’s good practice to keep track of all your crypto transactions and keep records of buying, selling and trading of any cryptocurrency, this would help in determining the capital gain/loss on them, as well as the cost basis. Simply import your trade data from your exchange API and CoinTracking.co will calculate the rest.
Crypto trading is subject to tax regulations in most countries, so it’s essential to comply with them to avoid any legal issues.
Automate Your Crypto Trading
Overall, while trading bots can offer a range of benefits to traders, they also come with a number of disadvantages and dangers. Get to know exactly how your bot will work before deciding to automate your crypto trading with a bot.
Crypto Investors should consider their own unique needs and risk tolerance when deciding whether to use a trading bot. Additionally, it is important to always do your own research, and thoroughly test and evaluate any trading bot before using it with your own funds.
Thirty two page Crypto Trading Plan Example PDF with Tutorial Video. Included with the Crypto SmartWatch model portfolio tracker.
Our bite-sized style cryptocurrency lessons are generally under 10 minutes per video so you can start building a focused understanding of trading crypto trading for profit – and skip past all learning about the technology.
A trading plan that you understand from entry to exit, is all you need to successfully make profit crypto trading the altcoin seasons.
Trading Plan Blueprint
A trading plan is a blueprint that outlines the steps you will take to achieve your trading goals. It acts as a roadmap or a flowchart, guiding you through the correct actions in to take in all 5 Stages Of The Trade. Whether you are a beginner or an experienced trader, a well-crafted trading plan can mean the difference between profit and loss.
Example of what is inside our Crypto Trading Plan PDF
In the basic Crypto SmartWatch crypto technical analysis course, we will be covering an introduction to only technical analysis we need for trading cryptocurrency with the least risk. Technical analysis is a tool we use to analyze historical price data and identify our trading signals and our risk control zones.
Technical Analysis is not about making predictions about future price movements, though the clickbait headlines on youtube may lure you into that horoscope-method-of-trading.
By understanding the principles of technical analysis and risk control, you can gain a deeper understanding of the real job that is required for successful trading – and even work out how long it might take to become a crypto millionaire.
This technical analysis for cryptocurrency PDF will provide you with a focused view of how we use technical analysis, including trend analysis with exponential moving average pair crossovers, trend lines, support and resistance levels, as well as our key trend reversal chart pattern.
You will learn how to use these techniques with our risk management approach to identify potential trading opportunities and plan the 5 Stages Of The Trade in advance.
In addition to the technical analysis cryptocurrency tutorial, we will also be covering other essential topics such as our two risk management rules, your emotional relationship with money, and how the Crypto SmartWatch can help you manage you portfolio diversification.
These topics are crucial for any successful trader and together with our coaching and our dedicated trading community, we can help you build a solid foundation for your trading journey.
You may have compiled a list of the best crypto trading courses available online – and yet still hesitating about which one to invest in. Other courses are designed to provide you with a comprehensive understanding of blockchain and the technology behind it.
But we don’t need to know any of that if we just want to profit from the price swings of the cryptocurrency asset or token.
Trade cryptocurrency and make profit
Skip the technological crap about crypto.
The SmartWatch will equip you with the skills and knowledge you need to start trading and managing risk confidently. Whether you are a beginner looking to get started or an experienced trader looking to expand your knowledge, the Crypto SmartWatch explains the entire process and then makes it a simple daily routine!
We hope you find our Crypto Trading Plan Example PDF helpful and look forward to guiding you on your trading journey. With the right knowledge and a well-crafted plan, you can maximize your chances of success in the exciting world of cryptocurrency trading.
More people are searching for proven approaches for reducing risk in crypto investments.
By following two simple risk control rules, it is possible to improve your returns and to effectively manage risk in your cryptocurrency investments – and at the same time resist the silky lure of price prediction.
How to reduce risk in crypto investments.
Managing losses in crypto trading
One of the most important risk control rule is to reduce or close your position unless it proves you correct. This means that if an investment is not performing as expected, it is important to reassess the situation and consider whether it is worth continuing to hold the position. If the investment is not meeting your expectations, it may be necessary to cut your losses and exit the trade.
This rule is important because it allows you to minimize potential losses by getting out of a trade that is not working in your favor. By holding on to a losing position, you are essentially doubling down on your initial error and increasing the risk of further losses. By reducing or closing your position, you are able to limit the potential for loss and to preserve your capital for future trades.
Another reason why this rule is so important is that it helps to prevent you from becoming emotionally attached to a losing trade. It can be easy to become emotionally invested in an investment, especially if you have a strong belief that it will eventually turn around. However, this can be a dangerous mindset to have, as it can lead you to hold onto a losing position for longer than you should. By following the rule of reducing or closing your position unless it proves you correct, you are able to maintain a level-headed and objective approach to your investments.
Increasing profits in crypto trading
The second risk control rule is to press your winners correctly without exception. This means that if an investment is performing well and meeting your expectations, it is important to take advantage of this success and to maximize your profits. This can be done by “pressing your winners,” or increasing your position in the investment.
This rule allows reminds you to take advantage of market opportunities and to push your correct position. By adding onto a winning position, you are able to capture a larger share of the potential profits. This can be particularly important if you are trading in a long trending market, as it allows you to capitalize and to potentially generate significant returns.
This rule is so important because it can prevent you from second guessing yourself and being too conservative in a position that has been proven correct. It can be tempting to take profits early and to lock in your gains, but this can also prevent you from maximizing your returns. By pressing your winners, you are able to stay engaged in the market and to potentially capture even larger profits.
Manage Risk, Don’t Predict Price
Managing risk is considered to be the primary job of a trader. This is because, while predicting price movement can be an important part of the trading process, it is ultimately not within a trader’s control. Crypto markets are especially unpredictable and require proven and tested strategies for following the trend while diversifying at the beginning of altcoin season. There are simply too many factors that can influence price movements, including economic events, new regulation changes, political developments, business failures, high level frauds, and even social and psychological factors… to name a few…
As a result, it is simply not realistic to accurately predict price movements on a consistent basis.
The primary job of a trader is managing the two sides of risk
mitigating the potential for loss.
maximizing the potential for gains.
A crypto traders primary job involves identifying and analyzing potential risks, developing strategies to mitigate exposure to those risks, and implementing those strategies effectively. Their secondary job is to increase exposure to risk when the trade is going in our favor.
By following a risk management approach that feels good and is easy to manage, traders are prepared in advance to preserve capital and maximize the potential for large and significant profits.
Why Do We Focus On Price Prediction?
Talking about price prediction is more seductive than talking about reducing risk in crypto investments for traders. It allows us to feel a sense of control in an unpredictable setting and we gain prestige and recognition from others when we are correct. However, it is important to recognize that price prediction is an unreliable activity and ultimately – it is not the primary focus of any pro trader.
Relying on our own price prediction it too heavily can lead to poor decision-making. If a trader becomes overly focused on trying to ‘be right’ on the direction and size of price movements, they may make trades based on their predictions rather than on sound risk management principles. This can leave a trader open to much bigger losses.
Top Crypto YouTubers and social media influencers may focus on price prediction because of a desire to gain approval from others and to earn income from views. This desire for approval can be particularly strong when it comes to activities that are perceived as challenging or prestigious, such as trading.
Price prediction leads new traders away from the job they are supposed to be doing…
For many traders, the pursuit of profits and success in the markets can be closely tied to their ego and their desire for social recognition. They may feel a sense of pride and accomplishment when they are able to predict price action and seek validation and approval from their peers and colleagues.
This desire for social recognition is a powerful motivator, but it can also lead to negative consequences in trading. For example, a trader who is overly focused on seeking approval and recognition may make risky trades in an attempt to impress others, even if those trades are not in line with their overall investment goals and risk tolerance.
Surrendering to the unknown can be emotionally challenging because it requires letting go of our ego’s desire to be in control and to have a sense of predictability. It can be difficult to accept that we cannot always know or control what will happen, and this can lead to feelings of anxiety and uncertainty.
However, surrendering to the unknown allows us to release our attachment to certain outcomes and to expect reversals against all of our best analysis.
When we focus on managing risk right now and not on potential results that ‘should’ happen, we naturally find a greater sense of freedom and peace in managing out trade positions.
In the context of trading, surrendering to the unknown is simply part of the job.
The markets are inherently unpredictable and volatile.
However, with a good trading plan we can learn how to let go of our need to control every outcome and to predict every price movement, we can free ourselves from unnecessary stress and anxiety and focus instead we assign that difficult work for our money to do on our behalf while we do other things.
Our only job is effective risk management. Our two risk control rules – reducing or closing your position unless it proves you correct and pressing your winners correctly without exception – are the keys that will keep you focused on reducing risk in crypto investments in order to tip the odds in the unfavorable game of trading… to your favor.
Understanding how Bitcoin Dominance affects altcoin season can provide insight into profit opportunities in the overall trends of the cryptocurrency market. Bitcoin dominance, bitcoin price, and altcoin season are all interconnected with Stable Coin Dominance.
The Crypto SmartWatch breaks down the effects on Altcoin Seasons caused by Bitcoin Dominance and Stable Coin Dominance and provides a daily action matrix that new DIY traders can learn and actually follow.
What is Bitcoin Dominance?
Bitcoin dominance refers to the percentage of the total cryptocurrency market capitalization that is held by Bitcoin. It is a measure of how much of the market is controlled by the leading cryptocurrency. When Bitcoin’s dominance is high, it means that it is a major player in the market and that other cryptocurrencies, known as altcoins, are not gaining as much traction. On the other hand, when Bitcoin’s dominance is low, it means that altcoins are taking a larger share of the market and potentially outperforming Bitcoin.
Here is a handy way to think of how Bitcoin Dominance affects Altcoin Seasons:
Bitcoin Dominance Basics
Bitcoin price, or the value of a single bitcoin, can also affect the market dominance of Bitcoin. When the price of Bitcoin is high, it can increase the market capitalization of the cryptocurrency and therefore increase its dominance. Conversely, when the price of Bitcoin is low, it can decrease the market capitalization and reduce its dominance.
When Is It Altcoin Season?
Altcoin season refers to a period of time when the US Dollar value of altcoins, or cryptocurrencies other than Bitcoin, experience a surge in value and market capitalization at a faster pace than bitcoin price.
This can be caused by a variety of factors, such as increased adoption, new development, or favorable world economic market conditions. During altcoin season, the market dominance of Bitcoin may decrease as investors flock to altcoins in search of potential gains.
Does Stable Coin Dominance Matter?
Stable coins, which are cryptocurrencies that are pegged to a stable asset such as the US dollar, can also provide insight into the flow of money into and out of the total cryptocurrency market capitalization.
Stable coins are often used as a way to store value and move money in and out of the market while remaining in a monetary for that is easy to convert back into other cryptocurrencies.
When stable coin dominance increases it is bearish for altcoins, it may indicate that investors are seeking to move money out of the market or to protect their investments from volatility.
On the other hand, a decrease in stable coin dominance is bullish because it may suggest that investors are feeling more confident in the market and are willing to take on more risk by investing into crypto again.
It is important to note that these relationships are not always straightforward and can change over time and we must always manage our risk exposure and be aware of common trading mistakes. For example, a decrease in Bitcoin’s dominance may not always mean that altcoin season is upon us. It could also be caused by a decrease in the overall market capitalization, as has been seen during market downturns. Similarly, an increase in the use of stable coins may not always indicate a lack of confidence in the market. It could also be a sign of increased adoption and demand for stable coins as a store of value.
Trading Altcoin Seasons in 2023
In 2023, the relationship between bitcoin dominance, bitcoin price, and altcoin season is even more complex and multifaceted. Stable coin dominance can provide insight into the flow of money into and out of the crypto markets but we need the Crypto SmartWatch to view the start and end of each altcoin season with improved clarity.
How Bitcoin Dominance affects Altcoin Seasons:
Understanding how Bitcoin Dominance affects Altcoin Seasons can provide insight into the overall health and maturity of the cryptocurrency market – but the Crypto SmartWatch breaks down that overall data into a simple daily action plan for building, balancing and releasing a diversified crypto portfolio as altcoin seasons come and go.
If you’re interested in learning how to trade cryptocurrency, you’re not alone. The market for digital currencies has exploded in recent years, with many people looking to get in on the action. However, crypto trading can be risky and it’s important to approach it with a solid understanding of the market and a well-thought-out strategy. Here are some tips for teaching yourself how to trade cryptocurrency.
You CAN learn to trade crypto for profits.
Start by learning the basics.
Before you start trading, it’s important to have a solid understanding of how the price discovery market works. This includes learning about the different types of cryptocurrencies, how they are created and traded, and the factors that can influence their value. Get prepared to track all your trades so you can improve your skills and report your taxes correctly. You can learn how to trade through online courses, books, quality bitcoin trading tutorials on youtube as a way to complement your own research with resources like CoinMarketCap.com
Choose the right exchange.
There are many different exchanges where you can buy and sell cryptocurrencies. It’s important to choose one that is reputable and secure. Look for an exchange that is regulated in your country and has a good track record of protecting its users’ assets. You should also consider the fees associated with different exchanges and choose one that offers competitive pricing. Consider the following proven crypto exchanges BitGet and SimpleFX as you compare against Binance and Bitfinex.
Find a proven crypto trading strategy.
Once you have a basic understanding of the market and have chosen an exchange, it’s time to start working with someone who has developed a proven long-term crypto trading strategy. Look for a clear written strategy on PDF and video tutorials provided as well. They should help you in setting clear goals, determining specific rules for anticipating risks, and also provide a clear methodology for when to choose the right assets to trade. It’s also a good idea to work with a service that also provides an active community that keeps up with market news and analysis – this will help you to stay informed about what’s happening in the world of cryptocurrency. Remember, if they have a proven strategy – the coach you want to follow has already been doing this for years… they trade full time and youtube views are not a source of income for them.
Practice with a demo account.
Many exchanges offer demo accounts that allow you to start teaching yourself how to trade cryptocurrency with virtual money without risking any of your own capital. This is a great way to practice and get a feel for how their trading platform works for setting up trades and stops… without risking any of your own money. You can create a simple spreadsheet on google sheets but it is better to actually use a demo account to practice your trading strategies on many markets in order to build the chart pattern recognition and daily habits of a successful trader BEFORE you are risking real money.
Five important principles for risk control and keeping profits:
Diversify your portfolio.
One of the keys to successful crypto trading is to diversify your portfolio. Don’t put all of your eggs in one basket by investing heavily in just one or two cryptocurrencies. Instead, plan a strategy for spreading your investments out over a variety of different coins when altcoin season is about to begin.
Plan your position size first.
The best way to keep your losses small is to start with a small trade size. Wait until your trade is well in profit before you establish your full position and you will dramatically shift the odds into your favor in the long term.
Use stop-loss orders.
Stop-loss orders are an essential tool for managing risk in crypto trading. Just like the breaks in a car, we need to know how to use them BEFORE we start driving. The stop loss order is based on technical price levels which may have an effect on the position size that fits your account equity levels for every specific trade. Thus it is important to plan our stop order in advance if we are to set a maximum loss that is not painful for equity size. If the price of the asset falls below the stop-loss level, the trade will be automatically closed to limit your losses.
Know your take profits signal in advance.
While it can be tempting to hold onto a winning position in the hopes that it will continue to rise in value, it’s important to remember that the crypto market is volatile and can turn on a dime. Even before you’ve made a profit, plan out exactly the conditions for taking profit and closing the trade. Our job as traders is to manage risk and to be prepared for the market to take a turn for the worse – while at the same time surrendering the results of our trade to the market.
Stay up-to-date on market news and analysis.
Crypto markets and profit opportunities can be influenced by a wide range of factors, including government regulations, hacking, and the overall state of the global economy. To protect our trades from the unexpected it’s important to keep up our risk control rules in play for every trade. To take advantage and press our correct positions, we can increase our profits with current market news and analysis. This can help you make informed decisions about when to add on to correct positions and when to take profits.
In conclusion, remember that 80% of new traders lose money and quit trading so teaching yourself how to trade cryptocurrency requires a combination of research, practice and persistence. Just as learning any complicated skill, you should seek out an experienced coach with a proven trading approach. Start by modeling their approach.
Practice, take notes, track your trades and journal your thinking on every trade – and soon you’ll pinpoint your own trading mistakes and gain more trading mastery.
ULTIMATE Crypto Trading Risk Control (RULE NUMBER ONE)
What would happen if you could go from struggling to profitable in your trading with two simple rules that could shift the odds into your favor?
I found these rules a couple of years after I started trading back in the 1990’s, after I lost all my money, twice.
I had learned all about entry patterns, but I hadn’t learned anything about risk control.
When I created my first crypto trading course in 2015, I reorganized all the random information I picked up over the years, and placed it into the order I wish I would have learned it.
So I’m introducing these rules in this video series before I reveal my trading plan entries and exits. I want to help new traders establish a foundation that will help ensure that you don’t lose all your money, like I did.
You don’t need to make these mistakes to learn these lessons, you can learn from observing my mistakes. And I’m happy to share them. I paid a lot for them.
Crypto Trading Risk Control Rules
Many of you have experience with trading already. These trading rules have provided some of our students with a flash of insight that immediately improves their crypto trading results, and others, like myself, may need a bit of study to build the belief around the profound shift.
And if you are new to trading crypto, and you are looking for a Beginners Guide to Trading Crypto, learning this approach at the start will definitely improve your odds of success.
Before you consider placing a speculative trade, you must be able to repeat these two key rules from memory – out loud – without reading them.
These two rules are simple to memorize and state. That’s part of their beauty. But these two short and simple rules have profound implications on your trading – no matter what trading methodology you may favor, be it chart patterns and technical analysis or be it fundamental analysis and news events… these two rules can shift the odds in a game that is normally stacked against you.
If you are serious about making money trading in any markets – learn this before you trade, think about it, practice it, just as a pilot learns and practices in simulations before they fly for real.
Profitable Trader Shares Common, Learned, Habits
The people who are profitable generally share common methods, common standards and common rules that they all abide by, even if they are wrong 70% of the time and right 30% of the time – they can be profitable in today’s difficult crypto markets.
You may have been trading cryptos, maybe making 60% correct calls and still be struggling to make profits. If this is the case, I invite you to imagine what would happen if these two rules actually did tip the odds into your favor and help ensure smaller losses and bigger profits!
More Than Buy Low Sell High
When I first reveal Rule #1 and Rule #2, they may seem over simplistic. So before I do that, I want to uncover the subtle elements to these rules and consider the consequences over a long time frame.
By the end of this video. you will come to understand the profound impact this approach can have on your trading and any other risky thing you are doing.
No matter what kind of risk you are taking. you want to incorporate Rule #1 and Rule #2 to help you protect yourself against negative consequences, and to make the positive results even bigger.
Once you see how the effects work together to help ensure your profitability – Rule #1 and Rule #2 will naturally become a part of all your trading.
By practicing these crypto risk control rules with your micro-investing, you can develop habits and wisdom that will help you gain similar mastery over your fiat cash stack as well.
Rules for Life
Often these rules can also apply to other areas of your life where you can use them on setting goals, correcting missteps quickly, and boosting the successes of any of your endeavors.
Growing your mirco-investments is a lot of fun! Dealing with money should be fun! And this is a great place to learn and practice success habits with money!
Correcting Common Trading Mistakes
One student wrote in: “I was trying leverage trading this week on gold and silver and I noticed I was really anxious of being at loss and I notice that I would get out very quickly if I’m in profit.”
This is a wonderful example of natural human emotion, and it’s the reason you want to start off small, with no leverage at the beginning.
Just play. Just get used to it. At the beginning you have to learn not to be anxious about a loss, you have to expect it, plan for it. It’s part of the work that your money is doing on your behalf.
We must change our thinking about the difficulties of a loss. Instead, start with the perspective that the loss will help protect you against the nasty things the market can do.
They who lose best, are the biggest winner in the end.
I’m so very grateful for that comment because I also have the same emotions many times in my trades! …especially if I’m over-trading with a position that is too large, or if I’ve put on a trade with too much leverage and my stoploss is too close to the market.
When trading a crypto market, you have to give it room to move. That means you have to trade a small enough position that you can comfortably give it that room to move within the technical levels.
Before starting each trade, it is vital that we prepare the correct position size according to the size of our account equity. It takes repetition and practice. Like learning anything, it will start out difficult, but soon it gets easier, and with practice, it becomes second nature and almost effortless.
Our premium community of traders refer to these two rules all the time. Lets review a few examples in order to appreciate the profound implications that each rule brings to your trading strategies.
Behavior modification, without doubt, is the key to trading success — it starts with how we think, yet we also need to change our beliefs in order to truly change how we act in certain situations.
We must be very clear about the trading situations we can control, and the situations over which we have no control.
I offer these lessons that I have learned, and that I am practicing – as guidance, but it is your own determination that will make you a success. I can share the knowledge, but it is your efforts that will make these rules into a belief and a habit.
These two rules will be responsible for protecting your assets, and will help to keep you in the trading game forever.
I can be very costly to make mistakes in trading. You don’t need to learn from your own mistakes in trading, you can learn about correct trading from observing others. I am happy to share them if they shorten your road to success.
Preparation For Crypto Trading
First, you must be properly prepared for the trade.
Second, you will do your work and you will let your money do it’s work
First, in your crypto trading career you will find that the markets go back and forth without going anywhere a lot of the time. Second, in your trading you will find you do not ever control the market but only your position. You can stop your position wherever you wish. I want you to drill that into your thinking also. You can stop the market’s effect on your equity any time you wish. Simply stop (remove) your position.
You must realize you are required to work with your positions and not let the market work on your positions.
The main reason I’m creating these video tutorials is so that I can become a better Trader myself. There have been times where the market did a total surprise to me and I got killed in the market, taking big losses. And after the fact I wondered what I did wrong in my Trading and what I discovered was I didn’t even know what the right thing was.
Fact is I had not taken the time to consider what a big move could do to my trading account. You may hear the cliche that the BIG money is on the surprise side. What this really mean is that the BIG LOSERS are on the familiar side or the expected side of a trade.
Today we’ll uncover the two keys that separate the big winners and big losers.
In the beginning, it didn’t ever occur to me that I should be preparing for the possibility of a big move against me. I was over-positioned, even though I thought I had a good protection plan, and, I was mistakenly doing the work that my money should be doing.
Everything I did in my trade planning was based on estimates of how much I could take out of the market. My trades were actually designed to lose and the worst part is that I don’t even know my strategy was ruining a good trading system.
Many times, when I thought I was smarter than the market and kept sticking to my predictions… I ended up taking a big loss in such a little period of time. Maybe this has happened to you as well.
Why does it happen? Mostly because my plan didn’t consider, “What if I am wrong?” My thoughts are always expecting to be right… after all, why would I put on a trade if I didn’t think I was correct?
Herein is the key to being a successful trader. I have learned this over and over again in my trading career. I haven’t found any crypto youtuber who will tell you what I am about to reveal.
In trading, if you have bad luck, you will eventually have to stop trading. To be prepared for that bad luck is a requirement in trading. You will not survive if you do not plan for bad luck. My first steps in trading remove the bad luck altogether.
Plan For Bad Luck
We must plan for the assumption that the trade will go against you as long as it is a possibility and not just when it is probable. This is a very important point in trading correctly!
This will be the surprise side in trading. The surprise side is a possible outcome but not a very high or likely probability. Most traders plan only for the probability side and that, to them, is always what they consider the winning side. This is the biggest mistake you can make in trading. Instead, you must plan for the losing side.
Trading is not a favorable game in most circumstances, and that is what we must use as our assumption in trading. The big mistake made by traders is thinking and expecting trading to be a favorable game.
The correct way to control positions is to only hold them once they prove to be correct. Let the market tell you your position is proven correct, but never let the market tell you that your position is wrong. You, as a good trader, must always be in command of knowing and telling yourself when your position is bad.
The market will tell you when your position is a good one to hold. Most traders do the opposite of what is correct by removing positions only when proven wrong.
Think about that. Your exposure and risk is much higher if you let the market prove you wrong instead of your actions removing positions systematically unless or until the market proves your position correct.
You never want to be in a position that is never proven correct. If you only get out when the market proves you wrong, it is possible to have higher risk due to the longer time period required to prove your position wrong.
So here is Rule Number one:
In a losing game such as trading, we shall start against the majority and assume we are wrong until proven correct!
Positions established must be reduced and removed until or unless the market proves the position correct!
In other words, the one criteria for removing a new position is because it has not been proven correct. We do not wait to remove a position until the market has proven the position incorrect.
There is a big difference here.
If the market does not prove the position correct, it is still possible the market has not proven the position wrong. If you wait until the market proves the position wrong, you are wasting time, money and effort in continuing to hope it is correct when it isn’t.
Hope is a beggar.
If you are hoping your trade is correct, it obviously wasn’t ever proven to be correct. Remove the position early if it doesn’t prove correct. By waiting until a position is proved wrong, you are asking for more slippage as you will be in the same situation as everyone else who is being proven wrong.
What makes this strategy more comfortable is that you must take action without exception if the market does not prove the position correct.
Most traders do nothing and let the market stop them out – and then it isn’t their decision to get out at all — it is the market’s decision.
But this approach will increase your losses. Instead, consider this thinking: When your position is right, you have to do nothing instead of doing nothing when you are wrong!
Lets consider the kind of thinking that might keep you in a losing position too long
Who is to say a position that was not proven correct turns from a bad position to a correct position?
If we fear being wrong when they get out and we are worried that the market will show us we should have stayed with the position, then we don’t take early losses when they are small, and it becomes more difficult to take a loss as it gets larger.
It’s the occasional big losses can take away the money you had working on your behalf, and it’s the big losses that demoralize you, and take you out of trading.
Our first job, our primary responsibility is practicing the swiftness needed in keeping your losses as small and quick as possible. It won’t always prove to be correct, but you will stay in the game this way, you will avoid the big losses this way.
I didn’t know what my choices were when it comes to assumptions about what is possible in trading. I started with the assumption that my job was to make money by trading, but this totally backwards. My job in trading is to take losses quick and small.
I now know that these ultimate crypto trading risk control rules assume my position is wrong until the market proves my position is correct. It is my job to know my trade is wrong.
In the beginning, I was making crypto trading mistakes on my losing trades, and I was making trading mistakes on my winning trades. Even with a great trading plan, I could not successfully earn a profit.
This video may provide a shift in perspective that will help, if you are making the crypto trading mistakes where you’re losing more money than you should have, and you’re also making the trading mistakes where you’re not making as much money as you could have
Gaining Skills With Money
In just ten minutes per day, you can learn to apply repeatable laws of money that can help you get wealthy.
How can this be true? Getting wealthy is a matter of making money, keeping your money, and growing your money.
Even if you are making money by working at a fast food restaurant, you can get rich over time, if you simply develop the habit of saving just $20 per week – and carefully make your savings grow with just a little bit of interest, compounded, year after year.
The trouble that most people have – that prevents them from getting wealthy – is they do not feel good about keeping their money – and they have not practiced feeling good about watching their money grow.
Instead, they feel good by spending their money. They act on the slick sales message of debt-pushers ‘get it now with easy payments’, and end up paying interest on that purchase… in effect, they are compounding the growth of someone else’s money!
Keep watching the other videos in this series as a way to reinforce and practice rehearsing good feelings about keeping your money and watching it grow.
Before we can truly overcome the two mistakes that all traders make, we need to understand them. This understanding comes from learning new knowledge, and second, from practice.
Mistake One
The first category are mistakes that we get punished for. We get punished by losing more money than we should have. Most people will learn from those mistakes over time – or they just quit trading because it’s not working for them. We’ll cover some specific strategies to help you prepare in advance to keep your losses small. It’s not wrong, and it’s not a mistake to take losses in trading – but if you are making the dollar cost averaging mistake we’ll cover in a moment, then your losses are much bigger than they should have been.
Mistake Two
The other category is harder to identify; these are mistakes we don’t get punished. That is, when we make this mistake, we simply don’t get the benefits we should have. We may never become aware of this mistake, because there is never a signpost that pops up to say ‘You didn’t get all these extras!’. Later in this video series, we’ll review a pro tactic that overcomes this mistake and makes winning trades bigger!
If you are making the mistakes where you’re losing more money than you should have, and you’re also making the mistakes where you’re not making as much money as you could have – then you want to break even in your trading, but you are struggling consistently, and it’s deeply frustrating for you.
You can overcome these mistakes. It will take some practice, but it’s so worth it!
Why We Make Trading Mistakes
The reason we make these two categories of trading mistakes is fear and greed.
The successful trader feels fear and greed, and the unsuccessful trader also feels fear and greed as well. The difference is, the successful trader feels fear and greed at opposite times to the unsuccessful trader!
Here are a couple examples to illustrate the point.
Mistakes When Losing
Let’s say we have two traders that go into an identical trade that moves against them; that is, they buy the same coin at the same place at the same time and price goes against them.
Right away, the successful trader is fearful of losing money – and so he sells out of the position quickly. The unsuccessful trader starts to get greedy because he sees that the price is now lower than it “should be” – and it’s even a bigger opportunity to ‘buy the dips’.
They may rationalize: ‘So if I bought 100 coins at 100 satoshi and the price is now 80 satoshi, then I could buy another hundred coins and I would average out the price… therefore I would have two hundred coins at an average price of 90, so really I’m only down 10’, and, such a trader might begin to imagine potential profits as a way to avoid dealing with the current loss; ‘When the price rebounds I’m going to make it killing because I’m into this position when it was even a bigger bargain!’
In reality, this trader is not managing risk correctly.
If the price should continue to go down – the trader now has a bigger position when he’s losing. As the price goes down, he may finally get to where he’s feeling so much pain that he has to get out of the position, and ends up with a much bigger loss than he should have. Naturally, this trader will feel discouraged and kind of panicky when he trades another position.
And actually, that emotion is a good guide.
You want to be feeling confident and prepared when you are ready to put on a trade.
Mistakes When Winning
Let’s go to the second example where both traders buy the same coin, at the same time, at the same price – and it goes with their expectations so they’re both profitable. The successful trader now feels greedy – because he’s been proven correct – any buys even more of the coin to have a larger position.
The unsuccessful trader, however, may be fearful of losing his profits and quickly cashes in the position – too soon. As time goes on the price continues to go in the direction they wanted, the unsuccessful trader now will feel even more anxiety watching the price go… and will head into the next trade with more uncertainty, fomo and doubt.
And so many traders gets killed in the market – by making mistakes that cause greater losses and making mistakes that reduce their profits.
Both of these mistakes are the result of trying to do the wrong job. Most new traders believe they are responsible for making money in their trading… but this is not our job at all. Successful traders know their job is all about managing risk. Reducing risk on losing trades and increasing risk on winning trades.
Surround Yourself With Success Thinking
DigitalCurrencyTraders hosts a private community. Interacting daily in our membership area can help you change the way you think and feel about your trades – you CAN gain the knowledge and build the habits that successful crypto traders have!
While you are safely adding to your savings each week, you can gain more perspective on the challenges and difficulties of trading. You can overcome mistakes.
When you start taking smaller losses when you are wrong, and start gaining larger profits when you are correct, added together, you end up creating a cycle of steady growth of your investments, you can trade larger volumes – and dramatically expand your future wealth potential!
Both paper trading and backtesting are a good starting approach. You can learn and prepare for each stage of the trade before risking real money – yet a simulation lacks the realism… Paper trading and backtesting do not include the all important emotions of fear and greed that so often cause new traders to make bad choices and lose money.
Now you know how the average trader is affected by fear and greed and how these emotions work against them, holding them back from making great profits, and often causing them to lose their money.
Two Mistakes all crypto traders make: Most new traders believe they are responsible for making money in their trading… but this is not our job at all. Successful traders know their job is all about managing risk.https://t.co/EnN6sqM6ca#CryptoTwitter#cryptotrader
In a later video, we’ll reveal how to overcome some additional ways that fear and greed may be working against you in your trading, so be sure to subscribe and hit the bell notification icon so you don’t miss out!
I want to share the best crypto trading book I’ve ever read, before we get into my favorite strategies for cryptocurrency trading – I have some exciting homework for you!
It is an entertaining read – and even though it was first published in 1923, it is one of the most educational books to help you get prepared for the ‘wild west’ of crypto trading. I have been re-read this book twice every year for over a decade and always learn more.
Order the printed book so you can underline wisdom as you find it, and order the audio book so you can listen as you walk, bus or drive.
Required Reading For New Traders
This more than just homework for you.
Consider this book your new companion as you are compiling the full range of skills and beliefs a successful trader must have. I recommend you read this book several times.
It is especially important to understand how pump and dumps work, and how to avoid that sting.
You also learn about the hazards of following the trading tips of other people, and much more…
Don’t skip this section, be sure to order this crypto trading book now, and then move ahead while the book is delivered. This short book will help you gain a broad perspective of the art of speculating, as well as a good knowledge of how price-discovery trading markets work.
I will be referring to principles that are taught in this book throughout the lessons and strategies in our youtube tutorial series. And those of you in the premium group will recognize the strategies as they are built in to the Crypto SmartWatch Traders Spreadsheets.
You may be a new investor – starting your first wealth building plan and seeking to build a life-long habit of growing your money – or you may be an established investor – learning about these new financial trading vehicles, and seeking to quickly establish a portfolio of digital currency holdings for yourself.
With spaced repetition of these wealth building facts, by learning the basics, studying historical market charts and watching real time prices play out in the live markets, you will move your new knowledge about growing your money – into practical experience – and eventually, into a belief that you follow habitually.
I’m going to illustrate why it is that 80% of new crypto traders lose money and quit trading after a few months to a year.
Maybe you lost money trading cryptos because of the way we learned our trading skills.
If you are like I was when I first started out, you set out to learn about trading from books, crypto video tutorials, online forums and social media personalities with large followings… then you transferred money into an exchange, and were ready to find some price patterns and put on some trades!
Maybe you were just like me, and you told yourself:
‘Don’t worry if you take a loss, it’s only your first trade… what do you expect?’
So you did what you said – you put on a few trades that started well, but a few good trades and a few bad trades later, then perhaps a good trade turned into a big loss.
Then what happened?
The fear of failure, the fear of loss is comes in, and now you are not sure what to do next!!
Now what’s the problem with the way I started out? What is the problem with the way many new traders may have started with cryptocurrency trading?
Let’s analyze why new crypto traders lose money:
Why 80% Of New Crypto Traders FAIL
The problem is not that you don’t know chart patterns, you’ve studied many of them.
The problem is not that you are not paying attention to the markets – you are watching the markets on your phone throughout the day (and night)
The problem is you did not have a specific plan in advance for what to do in this trading situation!
When we put on a new trade and it does something unexpected, it’s a time of stress for us, isn’t it? And at that moment in time the fight or flight reflex kicks in, adrenaline is released and the neocortex of the brain puts our strongest habit into action.
Why is crypto trading so hard?
This is why I recommend that you focus on just one trading strategy, because if we have not learned trading rules and risk control rules and then practice them, if we do not ‘drill for skill’ by repeating this trading strategy over and over until it become a belief that becomes a habit, we’re simple not going to use our trading rules correctly at the right time.
We are going to look back after our trade is closed, and will say ‘oh, if only I had done that, what a difference it would have made…’
You see, in trading, it’s not what you know that counts, it’s what you do as a habit.
Often it is of no value to you, just to know about several different trading patterns, indicators and risk control strategies.
Your key to success in trading, is to follow your trading rules spontaneously – as a habit – when you are managing your positions. So start with laser focus on one strategy and get really good at it before adding more skills to your trading toolbox.
