Howdy fellas, I want to do a different style of video where I’m talking about some of the trades that have just happened in our system.
I just closed a trade for 184% profit, and taking profits at that time was a mistake.
In this video, I want to talk about that specific trade that we got the trading signal entry for AGIX back in February 3rd, and yesterday when the prices made a top formation,
I took profit but I took profits too soon.
So in this video, I’m going to talk about how my trade was actually against my trading system.
First of all, I want to talk about the signal that got me into this trade because it’s really important for what I’ll explain at the end of this video.
Then I’m going to talk about why I did the exit at this time and why that was a mistake, why I knew it was a mistake and I did it anyway.
Then I’ll talk about what I should have done with the trade but according to our trading system.
I think it was back in early February,
⟁ the agix versus Bitcoin price made a 123 formation that was a consolidation and it gave us a trading signal, and
A written trading journal takes you away from the charts to think.
Get To Know Your Errors
So that the next time you come around to that, you can make the decision whether or not you’re going to do that same error at that same time.
Two Types of Errors
This is really important because there are two types of errors that you make while you are a cryptocurrency Trader.
First is the type of error that you get punished for; you lose money.
So pretty soon you stop doing those kinds of errors or you have to quit trading.
The second type of error, though, is those errors that you can make just like I had made right now that you will never know that you made an error until somebody points it out to you.
Altcoin Season Secrets – The Wave and Pullback Strategy!
And so I want to talk about stage four of the trade, and then I’m going to tell you where you can go and learn about this for free for the next seven days.
Stage four of the trade is where the price moves up, and then it comes back and consolidates, and you add on so that you are bigger on your winning trades on these few trades that really do the big move and pull back.
➤ You want to add on to those, I’m thinking, because it seems to me that we’re at the very beginning of a very large three to five-wave stage.
Elliot Waves
So Elliot wave theorists are going to be super excited about what might be coming in altcoin season right now.
And that’s because we’re coming out of an especially long Wyckoff Accumulation Pattern in the charts with the altcoins.
And so I believe everything is building up for a wave and then a pullback and then wave again.
Two Mistakes
And so it was a mistake for me to take profit on my agix trade for two different reasons.
➥ Second of all, I’m doing an extra taxable event if I want to get back into that trade and make the profits as it continues the rest of the trade up.
So it would have been better for me to sit still,
but I took that profit so that
I have the money and
so that my statistics are in my copy trading account.
What Is Next?
And now I’ve taken that full wad of money, I took 17, we’ll say 17, and I turned it into 52.
I took that full 52; I put it into another chart that’s making the very same pattern that AGIX was making a month ago.
And now I don’t know, of course, if this new chart is going to do the same thing that AGIX just did but cross my fingers.
Let’s see how this turns out.
And so while I’m talking about the price chart pattern for one specific coin, it’s important to that all of the altcoins move together.
And it’s better for us to, it’s less risk if we go across more coins in smaller trades and we stay into a spot position so that there’s no cost for holding the trade for a long time.
Hidden Cost of Leveraged Trading
Even if you’re doing low leverage, leverage trading Futures Trading, there’s always those ongoing costs as you hold the trade.
Where as if you get into a spot position, you can relax more because that’s how many coins you have, and it’s easier to weather through some of the difficulties.
And you’re also there for some of those coins that do the big moves that you would could never have known that they were going to go through.
Exposing Trading Industry Secrets – Are You Being Manipulated?
One of the most important perspectives is to know that the exchanges and most of the YouTube influencers, they make their money by your trading activity.
For example, I was approached by one exchange to sponsor my videos, and then I contact another Exchange that had already sponsored me, and I said how much would you sponsor me?
And they said it’s based on how much trading activity you generate.
So the more I get everybody to churn their account, the more the exchanges pay me as a sponsor.
Day trading crypto and leveraged crypto trading are encouraged only by exchanges.
So then it encourages me to tell you that you should be day trading and that you should be trading and taking profits and then trading again and taking profits.
Whereas I’m not sponsored by an exchange, I’m not motivated by how often you trade.
I’m motivated by the fact that you sit on those trades for a long time and you make some phenomenal profits off of these things that change your life.
This is the kind of story I want to hear, not how often you trade.
Trade Smart – Step Away from the 15-Minute Charts!
I say step away from those 15-minute charts; you should be looking at the charts 20, 30 minutes a day.
And if you’re doing more than that, then you are micromanaging your money.
And you should trade in such a way that you can relax and let your money watch the charts instead of you.
Thanks again for being here; I appreciate your audience.
In our video call this morning, November 13 2023, we Altcoin Season CoPilots reviewed the data for the onset of altcoin season and its implications on the price of tokens in the cryptocurrency market.
The video from the call did not record but we did get the audio so we can share some of our strategies for investment in Bitcoin and altcoins, addressing the dynamic nature of the crypto market and how one can maximize their assets.
This is seen as a sign of capital flowing into altcoins at a faster rate than into Bitcoin. This matches my understanding of the broader economic context, because of the ongoing bull market in stocks and precious metals, alongside increasing U.S. debt and global inflation.
Holding cash unless Bitcoin’s value is increasing.
Investing in Bitcoin unless its dominance is dropping.
Shifting to altcoins when Bitcoin dominance decreases.
Already Into Position Before Dominance Tops
Here is a screenshot from our Oct 23 notification.
Here is the same Altcoin Season Momentum chart for November 13:
The current market conditions are passing our entry signals for small diversified investments in altcoins.
However, the general strategy emphasizes staying mostly in Bitcoin and only shifting into altcoins as the alt/btc spread changes as noted above.
Trading Perspective and Diversification
Addressing a hypothetical scenario, the our system advise an individual with $1,000 in USDT (Tether) on how to approach the current market.
The recommendation is to look through all the charts to find entry patterns that match our trading plan, diversify directly into different cryptocurrencies rather than converting to Bitcoin first. This approach aims to maximize the number of Bitcoins held rather than focusing on dollar value.
Our system emphasizes the goal of growing Bitcoin holdings, the number of satoshi we own rather than the number of dollars we own, on the premise that Bitcoin’s value will significantly outpace that of the dollar.
Altcoin vs. Bitcoin Performance
The AltSeason CoPilot spreadsheet addresses the importance of choosing altcoins that are likely to increase in value against Bitcoin, rather than just against the US dollar.
As a recent example, while the US dollar value of Litecoin might have shown some profit recently…
…its performance against Bitcoin shows that holding Bitcoin would have been more profitable – and Litecoin now flags itself as a chart formation to watch for our signal to set up in the near future!
Conclusion
I want to finish this brief update with an emphasis on measuring success in terms of Satoshi, the smallest unit of Bitcoin, rather than in US dollars.
Focusing on strategies that grow Bitcoin holdings, stay focused the long-term potential of Bitcoin compared to traditional debt-backed fiat currencies.
Sign up for the AltSeason CoPilot. The Cryptocurrency Portfolio Rebalancing Tool That Anyone Can Actually Use.
Each day we manually review each altcoin/btc chart and we update the trade status as we rebalance our model portfolio from day to day.
Key Trading Tips To Remember
The following article was created based on our unique trading approach. We have been giving always our proven crypto trading plan PDF since 2015. Join thousands of people and learn to profit from trend trading.
Altcoin season is 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’s price. This can happen when Bitcoin’s price is stable, rising or decreasing. By trading the ALT/BTC spread during altcoin seasons, investors can take advantage of these price differences and increase their profits.
The AltSeason CoPilot is based on a proven crypto trading plan that includes risk control strategies. It is designed to help investors identify altcoin season opportunities and maximize their profits. The CoPilot is based on the principle of finding the altcoins that outperform Bitcoin during altcoin seasons.
The AltSeason CoPilot provides signals and indicators that can help traders identify the best altcoin season opportunities.
It also features risk management tools that can help traders manage their exposure and minimize their losses.
Another sign of an altseason is a decrease in Bitcoin dominance, which means that Bitcoin’s market capitalization as a percentage of the total cryptocurrency market cap is declining. 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 form 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.
While this indicates that investors have shifted their focus to other cryptocurrencies, it is an average of the entire group. Within that group of coins, some will be out performing, while others are stagnant. Bitcoin Dominance doesn’t give us the specific insight about which coins are performing best but we can rely on the daily action matrix from the AltSeason Copilot.
Bitcoin Dominance Relationship Shifts
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.
Many traders in the cryptocurrency market focus on trading altcoins against the US dollar. However, by focusing solely on this approach, many traders may be missing out on valuable opportunities that trading the ALT/BTC price spreads can provide.
Diversification Of Risk Exposure
Another significant advantage of our approach to trading the ALT/BTC spread is that we recommend our traders to take smaller position sizes and spread their portfolio across multiple cryptocurrencies. By diversifying their portfolio in this way, traders can potentially benefit from explosive moves in the hottest cryptocurrency markets while minimizing risk in those coins that have no follow through.
With this approach, traders can take advantage of a wider range of opportunities in the cryptocurrency market – while keeping risks low. To unlock profits with altcoin season trading strategies, it is important to focus on identifying long-term trends for altcoins and taking advantage of portfolio diversification.
In addition to the AltSeason CoPilot, traders can also use other tools to help them in their trading. For example, Crypto Signals That Work can provide traders with timely and accurate signals to help them make informed trading decisions. Automating Your Crypto Trading Strategy can also help traders take advantage of market opportunities without having to constantly monitor the market.
Finally, traders should also consider rebalancing their portfolios to take advantage of the opportunities that altcoin season presents. This can be done manually or by using a tool such as the AltSeason Portfolio Rebalance. This tool can help traders optimize their portfolios for the best returns by rebalancing their holdings to reflect the current market conditions.
Altcoin season is a great opportunity for traders to unlock profits. By taking advantage of the tools and strategies discussed in this article, traders can maximize their profits and minimize their losses during this exciting period of the cryptocurrency market.
Frequently Asked Questions
Q: What is altcoin season and how does it impact cryptocurrency trading?
A: Altcoin season refers to a period of time during which alternative coins, or altcoins, tend to increase in value relative to Bitcoin. During this period, traders often take long and short positions with altcoins to capitalize on the spread between them and Bitcoin. As a result, altcoin season can provide a great opportunity for traders to increase their profits as altcoin prices may outperform Bitcoin during this time.
Q: How can I take advantage of the ALT/BTC spread in crypto trading?
A: Taking advantage of the ALT/BTC spread can be done through several methods. By leveraging margin trading or futures trading, traders can use short and long positions to take advantage of the spread. Additionally, traders are also able to trade on exchanges that offer a wide range of altcoin pairs, allowing traders to capitalize on price differences between different altcoins.
Q: What are the risk control strategies I should consider when trading altcoins?
A:Risk control is an important element of trading altcoins as the volatility of altcoin prices is often higher than that of Bitcoin. To reduce the risks of trading altcoins, traders should employ a risk control strategy such as setting stop-losses and utilizing a risk-reward ratio. Additionally, traders should be aware of the potential risks and rewards associated with specific trading strategies, such as margin trading and futures trading.
Q: Why do altcoins tend to outperform Bitcoin during altcoin seasons?
A: Altcoins tend to outperform Bitcoin during altcoin seasons due to market sentiment and a greater level of speculative trading activity on altcoins. During altcoin seasons, traders often take long and short positions on these coins to capitalize on the spread between them and Bitcoin, driving up their prices. As a result, these coins can provide greater potential profits than Bitcoin during these times.
Q: What are the signs of an upcoming altcoin season?
A: The signs of an upcoming altcoin season include increased trading volumes for altcoins relative to Bitcoin, higher open interest on altcoin futures markets, and a decrease in the market dominance of stable coins. Additionally, traders may also look at market sentiment and upcoming developments releasing on altcoins, such as major announcements, to identify potential upcoming altcoin seasons.
You’ve probably heard about trading indicators and you’ve been using them without much of a plan. Let’s get specific about how trading indicators can help you better manage risk, find entries and exits and best of all – bring you peace of mind and release you from watching the charts all day.
Trading Indicators can help you make better trading decisions by providing insights into the market’s behavior. And, they can serve to deepen or to correct your own mistaken cognitive biases, so they must be used with care and objective planning.
Trading indicators are used by traders to identify trends and momentum – but when mixed in the wrong way, the result in different potential trading opportunities within the same chart pattern.
For example, one indicator may be showing an uptrend, while another indicator may be showing overbought conditions and flashing a sell signal.
New traders may not know which indicator to trust in which situation, leading to indecision and confusion.
Unexpected short term situations can have a huge impact on the success of what could have been a good a trade.
When unexpected news or events occur, small traders may react too quickly and change their positions because of a sudden but small timeframe price movement in the market. This can make it difficult for small traders learning to manage risk and refrain from over trading.
Four Indicators That Work Together
In this article, we’ll take a closer look at a set of four free trading indicators available with a free tradingview account.
We uncover how they can work together to verify the famous trend change pattern… The 1-2-3 Formation.
We’ll also discuss how they help with better risk control and better profit taking levels.
So, whether you’re new to trading or a seasoned pro, I hope this short introduction to a few free tradingview trading indicators will also help you improve an aspect of your trading strategy!
What Are Trading Indicators?
At the base of it all, indicators are mathematical calculations that are based on a set of data – in our case the price and/or volume of a cryptocurrency, stock or a commodity. An unlimited variety of indicators are used by newbies and professionals to analyze the market’s behavior and to identify potential trading opportunities. Trading indicators can be categorized, and each category provides different variations of insights into the market.
Some of the most common trading indicators include moving averages, bands and channels, candlestick analysis, harmonic patterns, oscillators, pivot points, wave analysis, and trend lines… the list of indicators goes on!
Moving averages are used to identify trends, while oscillators are used to identify momentum. Trend lines are used to identify potential support and resistance levels. Band and channels can identify reversal points and counter-trend signals.
When used together with a trading plan founded on a proven risk control approach, this combination of trading indicators can unlock a new confidence in your entries and exits!
How Do Trading Indicators Work?
Trading indicators work by analyzing past market data to identify trends and potential trading opportunities. They are based on mathematical calculations, and they can be customized to adjust the risk parameters for all Five Stage Of The Trade.
Indicators Work Together
We use indicators as one of the three criteria to identify specific and objective changes in Altcoin each cryptocurrency to build our Crypto Smartwatch AltSeason index.
For example, our popular AltSeason indicator might be set to look at the price of a crypto over the past 30 days.
The indicator then calculates two different exponential moving averages of the price over that period.
Different Types of Trading Indicators
There are many different types of trading indicators, and each one provides different insights into the market. Here are a few of the most common trading indicators and a link to the basic definitions for each.
Moving Averages – Moving averages and Exponential Moving Averages are used to identify trends in the market. They are calculated by taking the average price of a security over a specific period of time.
Oscillators – Oscillators are used to identify momentum in the market. They measure the difference between the current price and a moving average.
Relative Strength Index (RSI) – The RSI is an oscillator that is used to identify overbought and oversold conditions in the market. It measures the strength of a security’s price action over a specific period of time.
Trend Lines – Trend lines one of the many chart patterns that can be used to identify potential support and resistance levels in the market. Trendlines are drawn on a chart to connect the higher highs or lower lows of the price.
Bollinger Bands – Bollinger Bands are used to identify potential breakouts in the market. They are calculated by taking the standard deviation of a security’s price over a specific period of time.
We combine these indicators with three things:
our trend following trading plan,
our risk control rules and
our diversification strategy
to create a profitable, low risk approach to crypto that anyone can actually follow!
How Can Trading Indicators Help You Make Better Trading Decisions?
Trading indicators can help you make better trading decisions by providing insights into the market’s behavior.
They can help you identify trends, momentum, and potential trading opportunities.
Here are a few ways that trading indicators can help you improve your trading strategy:
Identifying Trends – Moving averages and trend lines identify trends in the market. This can help you determine whether a security is in an uptrend or a downtrend, and can help you trade better.
Identifying Momentum – Oscillators identify momentum in the market. This can help you determine whether a crypto is overbought or oversold.
Identifying FAKEOUT Breakouts – Bollinger Bands identify fakeout breakouts and reversals in the market. When the bands tighten, it indicates that the token price is trading in a narrow range. This can help you identify breakouts from the fakeouts and reversals.
Confirmation of Trading Signals – Trading indicators confirm trading signals. For example, if a cryptocurrency is showing an uptrend, but the RSI is showing overbought conditions, it may be a signal to sell the token. By using multiple indicators, you can confirm trading signals.
Risk Management – Trading indicators help manage risk by identifying potential stop loss levels so you take losses when they are small. For example, if a crypto is trading below a key support level, it may be a signal to exit the trade and cut your losses. By using trading indicators to identify potential stop loss levels, you can manage your risk and make better trading decisions.
Can Indicators Actually Automate Your Trading?
Trading indicators are powerful tools that can help you make better trading decisions. They provide insights into the market’s behavior and can help you identify trends, momentum, and potential trading opportunities.
Three well known crypto portfolio automation services:
Shrimpy: Shrimpy is a portfolio management and trading automation platform that allows users to create custom trading strategies and automate trades across multiple exchanges.
3commas: Find managed crypto portfolios to follow or set up your own automated strategy.
By using trading indicators in conjunction with other trading strategies, you can improve your trading performance and achieve greater success in the market.
However, it’s important to remember that trading indicators are not foolproof and should be used in conjunction with other forms of analysis. With the right approach, trading indicators can be a valuable addition to any trader’s toolkit.
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.
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!
