10 Tips for trading cryptos and attaining financial freedom
I) In order to be successful in trading you have to rig the game in your favour.
This is done by calculating entry and exit points, placing stops and limits, and trading in a risk-management oriented way.
Don’t look for homeruns, be consistent, play the base and overall, you will be successful.
II) Diversify you portfolio.
Try to spread your investing capital in a variety of assets that do not depend on each other. Take smaller position. Minimise the risks you take on a single investment. Don’t put yourself in a position where you could get blown out with one single trade.
III) Avoid these 3 trading mistakes :
FOMO trading : fear of missing out trading sucks. Do not trick yourself into thinking that you’re about to miss the boat. It isn’t your last opportunity, there will always be opportunity so long as markets exist.
Revenge trading : after loosing a trade, take your time to analyse the facts and try to understand what happened. Do not take another position in the trade to try and make up for your loss, you’ll end up loosing more. Bad trade happens all the time, the best traders make bad trades all year long, It’s all about keeping your winners stronger.
The Gambler’s fallacy : If you flip a coin, they are 50% chances of having tails and 50 % for having head. Now if you flip this coin 10 times and 10/10 times you have head, this does not mean that they are anymore chances for it to be tails the next time. In trading it is the same, do not trend because you think that after so much downturn it HAS to come back, the market HASN’T got to do anything it just does. So ride with it
IV) Anytime it’s about money, look for the conflicts of interests.
Don’t trust someone because he has a following on youtube or he says he has so and so background. Gather information, don’t be naive, take your time, never give way to the pressure of FOMO.
V) Look for the winners in the game.
“When everyone is greedy, start to panic, when everyone starts to panic, be greedy” - Warren Buffet.
Follow the smart money. Look at what the big players are doing and more importantly, identify what they want you to believe.
Focus on what the leaders in your space are doing and how you can emulate their behaviour or their actions at your level.
VI) Don’t try to find a winning strategy, instead equip yourself with winning tools.
To trade stocks or cryptos or any kind of asset on an exchange you have to have a good understanding of both fundamental and technical analysis. Learn how markets function from a general perspective, recognise the key patterns, and be prepared to adapt your trading and investment strategies to follow the opportunity. Do not be a slave to a single trading vehicle, you will die when the volatility dies on whichever market you speculating on.
Try to be an all-rounder. “Don’t be a specialist, a specialist is just a rookie in all the other fields” - Connor McGregor
VII) Set wildly important goals (WIG).
Set a time frame and quantify the results you are looking to achieve. You have to be able to formulate you’re WIG in a simple sentence.
Your goals should look like this :
“Have a net worth of a million dollar by the end of the year 2022”.
VIII) Live, sleep, eat cashflow.
You have to generate cashflow with the assets that you are acquiring in order to achieve financial success. Let your money work for you, money don’t need to sleep, you do. Look for stuff that pay out dividends. Look at https://tokensale.caviar.io/?ref=5781, a real-estate backed token which pays out quarterly dividends.
IX) Read.
This doesn’t need explaining, it needs doing. You can set up yearly book-reading goals to keep track. I try to read a book a month. If you don’t have much time to read a book during the day, I would recommend trying out medium. I have totally integrated it’s morning readers digest I receive in my newsletter to my routine and it’s really giving me a lot of ideas. Do whatever you want but read.
X) Keep it simple. Simple wins everyday.
Litecoin is actually a very simple clone of Bitcoin. Charlie Lee identified the key elements in every cryptocoins available at that time. He then combined all of those elements to create a simple, easy and reliable self-sustaining system. He understood that whatever breakthrough tech is behind your project, if it is not simple, and by simple here, I mean easily marketable to the masses, it will not prosper.
Bonus tip : Don’t compete, run the play. Create your rules, don’t try to win at someones else game. Find your differentiator and push that forward.
Bonus 2 : Find you nemesis. And position yourself in comparison.
GO Vincentb!!!