Tag: crypto investing

  • Reducing Risk In Crypto Investments

    Reducing Risk In Crypto Investments

    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.

    Two strategies for reducing risk in crypto investments.
    How to reduce risk in crypto investments.
    1. 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.

    1. 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.

    Why 80% of New Traders Fail

    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.

    Trading Mistakes When Winning
    Trading Mistakes When Losing

    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.

  • A Simple Plan To Become A Millionaire

    A Simple Plan To Become A Millionaire

    I want to share a simple plan to become a Millionaire. It is one of the most important financial concepts I’ve ever learned. I wish I would have thought about this more and ‘drilled for skill’ to make this knowledge into a belief and a habit when I was younger – as it would have led to my financial success more quickly. 

    How Anyone Can Become A Millionaire


    It is a very simple plan on how to become a millionaire.

    It applies to Fiat money, and in another post I show you the math and how to make plans to become a crypto millionaire – you’ll soon see that the simple principles below can be even MORE powerful when applied to cryptocurrency altseasons!

    Bob Proctor and John Kanary taught a series of fantastic ‘Born Rich’ seminars back in the early 1980’s. Yes, more than 25 years ago… it is so powerful you would think that everyone would know about it these days…

    One segment of this seminar on building prosperity, wealth and success, detailed the simple formula for becoming a millionaire with a plan that anyone could achieve. This segment of their seminar really struck me. It was a profound truth that I had neglected for decades.

    I listened to this segment many, many times. I wrote it out. I practiced reading it aloud. I created free webinars about it and I’ve included it in this book so I can teach other people – as a way of repeating it in my own mind with as much emotion and conviction as I can muster. Since that time I have been implementing this strategy – and the results are predictable, in a word… fantastic! 

    (And after I share Bob’s method – I’ll demonstrate how cryptocurrencies now provide even better results than Bob could have imagined back in 1982!)

    I paraphrase Bob as he commented…

    “Would you agree that you blow, waist or spend twenty bucks each week on things that you could do without?”  Bob asked.

    Imagine a different habit with me.  Imagine yourself folding up a twenty dollar bill at the end of the week and putting it into a simple wooden box. Now, imagine yourself folding up another twenty dollar bill at the end of the next week. See yourself placing it into the savings box with the first.  Each week, imagine placing another folded bill into the box. Each week you see your growing assets. Imagine the feeling of accomplishment you would have when you open the box and see a stack of eight twenty dollar bills – and you fold up another to add to the box.  As the weeks turn into months, and the months turn into seasons, each week, you set aside another $20. 

    Over a time of 50 weeks you have now saved $1,000 – and you have also created two very important habits

    You have created the habit of watching your money grow – and you have also created the habit of protecting that money from all the desires, events and opportunities that you faced from day to day throughout that entire year. Just imagine the accomplishment you now feel as you view that stack of money! As a matter of fact – the feeling of accomplishment has now become a habit for you, and you are building a deeper belief in yourself, wouldn’t you agree?

    Habits are hard to break, isn’t that right? 

    Now, think about this – imagine you established this habit in your youth, and repeated this simple plan through all of your working years, lets say from 20 years old until you were 60. At $1000 per year over 40 years, you would have saved $40,000. Correct? 

    However – this could have been worth more than one million dollars with ONE simple ingredient… one simple strategy that requires no more time and no additional effort! This one strategy, a simple bit of knowledge – could have made this $40k into more than a million dollars!! What is this magic strategy that can have such a profound effect on your wealth and comfort? 

    The Magic Strategy That Transforms Money

    The magic strategy is earning interest. Earning Interest?  How can such a small thing make that magic difference, you might ask?  

    Earning interest, and putting that interest to work to earn more interest – can have a dramatic effect on the success of our simple $20 per week savings plan! Let’s imagine that, instead of folding up your $20 bill and placing it in a wooden box with the others – imagine that you put that $20 to work on your behalf.

    If this money was to be , instead of the $40,000 you saved –

    invested and grow at a rate of 10% per year, you would have a total of $482,000

    If it was invested and grown at a rate of 12% per year you would have $840,000

    Invested at a rate of 14% per year, compounded monthly, you would have $1,490,000!

    And all you ever need, to ensure a comfortable retirement with more than a million dollars in the bank, is to know about the life-changing power of this little $20 per week plan, along with the magic of compound interest. 

    Anyone can do this.

    Bob Proctor was teaching this in 1982 – but 25 years later – WHY IS IT that less than 20% of our population retire wealthy??

    You may point out that bank interest rates are less than 3% per year on the very best savings account – and many savings accounts do not provide any interest at all…

    Well, later on – I’m going to show you a way that you can start with a micro-investment and start earning profits from the trends in cryptocurrency prices.

    But I’m getting ahead of myself.  We are going to get into the Bitcoin earning information right away, and then I’m going to show you how to start earning interest on your micro-investment… But before we do – reflect for a moment – on your current habits with money. 

    Three Categories Of People, And Their Money

    Bob Proctor points out the following simple truth: People fall into three categories when it comes to money:

    1. Their monthly budget is slightly negative and they are spending a little more money every month then they are earning

    2. Their monthly budget matches their income and they have no money at the end of the month.

    3. Their monthly living cost is less than their revenue, they put away regular savings.


    If you were to guess – what percentage of the population do you feel would fall into each of these three categories? 

    Recently a top respected Canadian newspaper, Global News, quotes that “Canadians are dreaming of retirement but they are not actually saving for it” and they point out the following facts:

    According to Statistics Canada, in 2012 just 23.7 per cent of Canadian tax-filers contributed to a tax-sheltered Retirement Savings Plan.

    From that, we can infer that 75% of Canadian fall into Bob Proctor’s first two categories – and it may be the same in other countries as well.

    Does Money Solve Money Problems?

    What if you gave more money to a person who has a habit of spending more each month than they have?  What if you gave more money to a person who has the habit of spending all the money they have?  Do you think more money solve their money problems?

    What about the example of people who have won the lottery, and within a few years they are in far worse financial shape than they were before they won the lottery?

    The truth is, more money just magnifies the habits that you already have with money.

    More money highlights the tragic flaws we have with money,
    or the virtues we have learned and nurtured about money. 

    If we trace back where your relationship with money began, it follows that the habits you have are a result of the actions you took.  Your beliefs determine your actions, and your beliefs were generated when you learned something. If we learn something, the new knowledge may not become a belief that changes your actions.  Just because we ‘know’ we should do something, doesn’t mean we will do it.  There is a space between knowledge and action.

    So the big goal is not to make more money to solve your money problems, because more money will just fall under the same routine and habits that you already have with money.  More money doesn’t solve money problems. 


    It is kind of a paradox until you change the way you think and feel about money.

    Throughout the rest of this video series, starting with goal setting for our micro-investing with Bitcoin and cryptocurrencies, you are going to learn the specific steps to make money work for you – but more than that… the feeling of accomplishment that you experience when you make money work for you, will completely change your belief about your future wealth.

  • THE Practical Guide To Cryptocurrency Trading

    THE Practical Guide To Cryptocurrency Trading

    What you might expect from a video guild Guide To Cryptocurrency Trading, is advice that you should check the fibonacci levels, you should study Elliott Wave principles, you should learn to read candlesticks, look for ascending wedge triangles, bull flags, pennants, and the list goes on…


    I find many of those trading guides helpful, but they don’t often provide a complete and practical system that follows a trading situation from start to finish – PLUS those extra details you need to become a consistently profitable trader in the long term.

    What follows in this video series

    This Crypto Trading Guide video series is divided into sections.

    1. Before we get into technical analysis and the details of trading this plan, the first set of videos uncover our relationship with money and how to use the laws of money to set the stage for trading success.
    2. The second series of videos include our trading plan, the entries and the exits.
      In addition to The Five Stages of a Trade.
    3. The final set of videos include case studies for tackling specific trading difficulties.

    Would you agree that every crypto trader uses technical analysis to help them make money?

    If that is the case it stands to reason that technical analysis is a skill where we should develop PILOT LEVEL expertise, isn’t that right?

    I wouldn’t recommend learning to be a pilot though a video series, but I CAN show you a complete and practical approach to trading bitcoin, cryptocurrencies and any other market!

    Hi, my name is Doug, and along with the team at DigitalCurrencyTraders.com, I am happy to present our latest video guides for cryptocurrency enthusiasts:

    This tutorial series is intended to provide the entire trading plan and make it easy and accessible for the complete beginner.


    We also provide premium education, courses, trading alerts and private community.

    If you are saving and investing in crypto already, you are at the front of the line for achieving financial success

    Remember: in life you can earn a little, or you can earn a lot, it is largely up to you.

    No one is smarter than you and no one is better than you. If someone is doing better than you with money, it’s because they know something – that you can learn, model, drill for skill.

    Your past performance is no indicator of future potential. You owe it to yourself to learn how to be one of the highest earning, most successful people trading these markets.

    ———-

    My Short Story

    Some of you are new to DigitalCurrencyTraders.com and this is the first time you’ve come to know about us, but you may know that I took my first course on Commodities Futures Trading back in March of 1995.

    And I started YouTube videos and workshops October of 2009 – as I practiced trading the 1-2-3 pattern on the price of items bought and sold within the online multiplayer game of Runescape!

    It wasn’t until 2015 that I ‘discovered’ bitcoin. I started the bitcoin trading video journal and blogged about my progress and difficulties as I traded cryptos for profit.

    Over the years, I’ve created well over 1000 trading journal videos! I was completely determined to document my plans and then look back and learn from my mistakes.

    My Guide To Cryptocurrency Trading

    As a result of sharing my video journal online, I’ve had the honor of answering thousands of questions which helped me to clarify every stage of my trading plan.

    I am very humbled by the fact that 1000’s of students from over 70 different countries around the world have registered for my courses! That is just amazing to me and I could not be more grateful for having all of you aboard!

    ——-

    Originally created as a written trading plan for my own use, what follows is a formula of how I actually changed the way I was thinking and feeling about money and then how I earned micro-bits of digital currencies and invested them for fantastic profit.

    The lessons are presented in the order that I would have my younger self learn – rather than the hit-and-miss journey of trial and error that I actually took over the decades.

    The tutorial series is not intended to cover all areas of education about cryptocurrencies, nor is it a complete manual for trading and investing. I am not a financial advisor. The purpose of this video series is to share my written trading plan in a tutorial format that may help shorten your journey to financial success and financial freedom!

    —-

    I believe all trading skills, indeed, all skills with money are learnable.

    Once you learn a specific trading strategy, I recommend that you use it over and over again to ‘drill for skill’. Bring up historical charts and do back testing. And each time you study, repeat and practice, you get better at waiting for the high probability setups, and you begin to consistently achieve results at just the right time.

    I’ve never been more excited about the potential for new cryptocurrency investors!

    My angle with bitcoin and crypto is not so much in the amazing technology and how that may disrupt business in every sector, I’m sure it will – but I am much more excited about how these new easy-to-access micro-investing opportunities in cryptocurrency can help anyone start from nothing, earn money and grow it.

    We now have access to more powerful financial tools than any generation in history.

    I hope this video series leaves you with the sense
    that YOU CAN DO THIS!

    You CAN follow these simple rules. You CAN experience more consistent profits and success – as I have… even if you have failed in the past.

    Thank you for joining me on this journey. We have more than 50 videos in the planning, and your questions have already grown our list!

    Please leave your requests in the comments below any of the videos in this series!

    Let’s get started with the essentials you need to know to build serious wealth in micro-steps.

    You’ll learn new ideas that may change your actions which can lead to dramatically different results, as you will discover!

    Trade safe, and keep those losses small.

    Doug