For those that are currently reading this I think it’s important to remind ourselves how early we are to this market. Approximately less than 1% of the population own bitcoin giving us the opportunity of a life time, whether it’s to increase the financial stability of ourselves or our families. Below is a comparison of other markets compared to our baby crypto market to give you some perspective.
-S&P 500 Market Cap: $23.7 Trillion
-Forex 24Hr Volume: $6 Trillion
-Cryptocurrency Market Cap: $170 Billion
There’s a lot of money to be made.
If you’re reading this you’re most likely trading cryptocurrencies or investing in them, you were drawn in by the freedom trading offered, the financial freedom that could be possible. I started trading because I wanted to be my own boss and work from anywhere in the world to make as much money as I wanted. But I quickly found out that there was a lot for me to learn, many concepts and trading strategies and rules I had to implement to make sure that the money I made I was able to keep. One of the biggest barriers to become a successful trader is understanding the rules you need to have in place to become successful. Because we’re so early, I think it’s important that we educate ourselves so that we can fully take advantage of the once in a life time opportunity Bitcoin has presented us with.
I recently put out a video on my YouTube channel with the title of “Entering a DeepBrain Chain Trade” and noticed that it had more dislikes than the rest of my videos. My assumption is that some one out there took a trade without understanding the rules that I had in place if the trade didn’t go my way. I always pre-define my risk to reward when I enter a trade because I want to make sure that my capital stays protected, I’m happy to take a loss and keep it minimal so that I can find better opportunities else where because it’s not about being right, it’s about making money.
If you’re interested in trading you’re going to have to get serious about it because it takes work to be consistently successful at this. Here are a few concepts to look into and better understand when it comes to trading:
-Risk to Reward
-Position Sizing
-Planned Entries & Exits
-Stop-Loss
-Scaling In & Out
An easy read that I’d recommend to get your mind right is a book called “Trading In The Zone” by Mark Douglas, this book will focus on the psychological aspect of trading with a lot of good stories and concepts to illustrate the points clearly. “Trading Beyond The Matrix” is another book I’d recommend by Van K. Tharp that talks extensively about position sizing, this will allow you to stay in the game longer by making sure you don’t blow through your trading accounts. Hope you enjoyed reading this post and got something out of it! Let me know in the comments what your strengths and weaknesses are as a trader. Cheers!
Sources: (https://medium.com/@coventureresearch/how-many-people-own-bitcoin-9dd3ddd7bba5 )
