Crypto Investing 86 By Tai Zen – Crypto Lessons With Digitalcurrencytraders

 

Tai – What’s up guys? This Tai Zen. I’m broadcasting from Dallas Texas today, the city of Dallas and with me today guys I have a very special guest coming all the way from Canada. I want you got to meet Doug Lampi. Say hello Doug.

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Doug – Thanks for having me on the show Tai. I’ve have been a long time follower! I’m broadcasting here from cold Winnipeg Canada where it’s about minus ten degrees Celsius. Little bit of snow here this morning.

Tai – Oh yeah I cannot live in cold weather man. You know the couple of—–the two times in my life that I almost died. Now check this out. I’ve had 3 heart attacks in my life already and you know I used to grow up in the projects in the hood you know. And you know I’ve been in you know—–let’s just say some battles where I’ve been shot a few times but despite all that, despite all that the two times in my life that I came to that I came closest to death was in Boston. Up north where I almost froze to death.

Doug – Hahaha, Boston is not ‘north’

Tai – I’m not kidding. Three heart attacks, I’ve been shot before in the projects and the closest thing that I come to you know the Grim Sleeper was almost freezing to death. So I am not a big fan of being around the cold.

Doug – Yeah we don’t have a lot of homeless people here.

Tai – No, no, no, that’s not a—–that’s not something that I find very attractive you know, is that I can go outside and if my car—-my family breaks down in the cold or something, in the snow and they can just die because there’s no—it’s just from the cold man you know.

Doug – That’s just the way of life though. You get prepared for it and then you really can sleep outside when it’s 30 below Celsius and you really can, if you’re just dressed for it, you can sleep.

Tai – Oh yeah?

Doug – Yeah.

Tai – You know what? I thought I was dressed but I almost died in Boston. When I went up there I got stuck in like the coldest blizzard they’ve ever had like n years you know.

Doug – They’re not prepared for that kind of thing in Boston though. It wouldn’t phase us here in Winnipeg we’ve got machinery for it and winter tires and stuff.

Tai – Yeah yeah. what cha ma call it crypto……I’m going to buy a place in the sun with my crypto profits and that’s exactly what I’m going to——I’m not going to die in the cold.

Doug – Yes I agree!

This is a Cryptocurrency Investing Channel

Tai – Okay enough about the cold here and the warm weather. This is a cryptocurrency investing channel and we have Mr Doug Lampi here for a reason. He’s going to be sharing it with us some of his experience and some of his cryptocurrency investing mistakes that he’s made over the years, so that you guy can benefit from it you know. And then at the end of this interview you know if you guys want to learn more from Doug he’ll share with you guys the information on how you guys can follow him and learn some more. Okay his style of trading and investing okay.

We are cryptocurrency investing channel, but neither one of us are licensed financial advisors. Okay and now it’s safe to assume that I talk about the currency and when Doug talks about the currency – assume that if I talk about cryptocurrency and Doug talks about cryptocurrency just assume we’re invested in this. You don’t have to ask. okay. So full disclosure and everything oaky. Whatever we talk about we’re invested into it okay. Just a blanket disclosure there okay.

So let’s start by doing this Doug, can you share with our audience like a little bit about your background. Before you even got into cryptocurrency what’s your background?

Tell Us About Your Background

Doug – Well my background is: I graduated from university with a major in zoology and double minor in botany and chemistry and I never worked a day in the field in my life. I immediately went and started working for a lumber yard, hard physical labor. And I did that for nine years. I hated it so much. I really wanted to work my way out of there. So in 1995, on March 3rd, 1995 I purchased a course called The World’s Most Powerful Money Manual and Course and this was teaching me how to trade commodities. And I really went into it full time. I did paper trading and I even put real money into it twice and lost all of it – twice. And as I studied and studied for years, I came to the idea that I really need about $10,000 US to be able to trade mini contracts for the S&P 500 . To be able to have that kind of risk control that I learned over a couple years. I just didn’t have the money to do it.

Tai – Just real quick recap because you’re saying a lot there. I want to make sure our audience understand what you’re saying in case. You know we have people who have who have traded FOREX before and then we have people who have never traded FOREX before. I want you to get the idea of what Doug just said there. He said he got $10,000 together to trade the S & P 500 features. Okay that’s the E-mini contract. You need about $5,500 $5,700 to trade one contract. And each contract the of the S & P 500 futures like the E-minis is the equivalent of trading way one $125,000 per contract and you’re putting up like $5,600/ $5,700 to control that value. And it’s like trading one $125,000 worth of value or you can think of it as trading 1,250 shares of a stock. So I just want to share that with the audience so they’ll have an idea they’ve never traded futures before.

Doug – Yes. It was very high leverage and I was very inexperienced with it and quickly lost all my money – twice. So that was—-it was a real wake up call for me, but I never did lose the passion for trading. I always watched the market. I was always keeping my eye on it knowing that in the future I would trade.

Around the year 2009 I was playing the game Runescape. If anybody’s heard that, it’s a multiplayer online game where you are killing monsters basically. And inside this game you need to buy items to develop your skills. There is a Grand Exchange in this game where you can buy and sell all the items you needed. And they started offering price charts of these items and the prices actually moved by supply and demand. So if you bought up all the supply, the price would go up. And so I was starting to teach people how to trade like a stock trader inside the Runescape grand exchange. Because there was rampant price manipulation in there – lots of kids were getting burned by following manipulating clans… and I was trying to teach how to trade like a stock trader, just like I had learned in the course I took on how to trade commodities. And so then I practiced for a couple years trading with basically pretend money, with gold pieces, following the same chart formations that I learned how do. And I really did well, I went from a couple million gold pieces to over several billion gold pieces just by buying low and selling high by these patterns.

And it wasn’t until December of 2014 where one of the people that was in my Lumbridgecity website from learning how to trade on Runescape, they asked me “Have you been trading cryptocurrencies?” And I had to go to Google and search it to find out what cryptocurrency was.  I didn’t know what Bitcoin was and it didn’t take long before the bug hit me and I was completely obsessed, because I immediately saw that all of my trade strategies could be used on Bitcoin and all these cryptocurrency as well. Starting off with just pennies, I didn’t need to have $10,000 now. I could have a dollar was Bitcoin and I could buy maidsafe coin with that. You know buy low, sell high and start work my way up from there.

Tai – So what year did you—-would you say that you bought your Bitcoin?

Doug – It was 2015 when I finally got back from Brazil. I learned about Bitcoin when I was in Brazil in December/January of 2015 there about, and it wasn’t until I got back to Canada that I could take some money and go down to a Bitcoin A.T.M. they had here and actually purchase some Bitcoin. And so my first Bitcoin that I got was actually given to me as a tip when they had—what was that, Changetip.com was working. And a couple guys gave me tips underneath my YouTube videos and that’s what started me out!

Tai – So do you remember the price of Bitcoin at the time that you got in?

Doug – Yeah it was around $450 (edit, price was $330) and it was just at December 31st of 2014. (edit, my first youtube video about the price of bitcoin)

 

 

It was making a bottom, almost, look like it was going to start taking off…. and it made that big crash down. And that was my first entry into it, it was back there when it crashed down and it was I don’t know it dropped as low as $250 or so. I think my best trade was purchasing 2 ½ Bitcoins on September 24th of 2015, right at the very beginning of the massive trend upward.

Tai – Okay okay and so what were you doing at that time? Because at that time you staring to broadcast online on YouTube and then what were you doing in the day? Were you still working or were you still—- or did you jump into crypto full time?

Doug – I jumped into crypto as much full time as I could but I was still working as a freelancer for other people doing their websites. I haven’t worked a full time job since 2001, where I quit my job at the lumber yard and started my own web design company. Except for one year I worked for another website design company and set up their digital marketing center.

Tai – And then so when you do that, at what point would you say that you transition like full time into crypto and you did not take any more you know side gigs in the in the web development space?

Doug – It was generally January or February of this year where the bottom flowmations were coming in and I put full time developing my course and just putting everything I could into the cryptos. And it really turned out well through the 2017.

What If CryptoTrading Full Time Doesn’t Work Out?

Tai – Okay. And let me ask you this: one of the biggest fears that I have, you know, like, all the full time crypto traders and investors that I talk to and I interview – henever we are offline, one of the things that they’re always concern about, Doug, is that when they leave their day job or their business or something to transition into being a full time cryptocurrency trader or investor… there’s always this fear that “Hey what if this doesn’t work out? You know am I making a big leap here?” You have a wife and you have a child and everything. Like how—-What was going through your mind to help the audience? Because I know there’s a lot of people out there watching this right now that they have plans to leave their job or their business and go focus on cryptocurrency investing full time. Talk about the emotional or psychological struggle if there was any that you had to go through in order to make that leap forward?

Doug – Well I started to leave probably back in 2009 where I started this website Lumbrigecity. I was doing the Runescape Merchanting YouTube videos about the price of, you know, ‘Santa Hats’ on Runescape – which really has no bearing in the real world. So I was really practicing… and I knew in advance I was practicing for a website that would do the same thing for real money and it wouldn’t just be a game anymore. And so now that’s what I was focused on doing.

But I must say that, before the crypto’s really took off and I made such a fantastic profit this year… I struggled for a lot of years with finances. Mostly because I did just enough work to get me by – and then I really focused on developing my own internet marketing skills. Working on my own skills, working for myself and then I would work for other people. So I really focused on developing those skills for a long time before I finally made that jump. So when the money started coming in, another important part is that, while I struggled financially for such a long time, I really had to go and study with financial masters to learn “what am I doing wrong with finances?” so that I could start doing right things and build my money up. And so I did a lot of years of studying under ‘Think and Grow Rich‘. All of the different self-improvement courses on the ‘Law of Attraction’ and many others.

I started to see that I was being fearful about money. I was being anxious about money. I was being resentful and angry about money – and this wasn’t helping me do well with the money I had in my hand. And so little bit by little bit by starting off with Bitcoin and cryptocurrency – where it was sort of play money off to the side. I was able to build my financial habits so that I was doing better things with money; making it and keeping it and growing it.

So when the money started flowing in this year, I quickly put it into a whole bunch of different places where my future is set, my wife and kid can eat for a year and a half without any worries about money, no matter what the markets do. I try to think of it as a pool of water where you have a fountain, the water’s coming out. When that top pool fills up, then the money goes down to the next pool and the next pool and the next pool. And for me the security pool at the top is the most important. When the money came in I put that aside. I bought gold and silver and put it in a safety deposit box in the bank. I want to have a stable footing underneath me. And then now when I’m trading, it really is risk money and it doesn’t have that emotional attachment that if I was trading with my rent money I would be really nervous about it.

Tai – Yeah I can agree with you on that. Like that was one of the things that we have on our team you know, that myself, Leon, David, we all secured multiple years of bills and expenses right. You know for each of us it was a little bit different you know. For some us we secured three years, some of us secured 5 years and some of us secured a lifetime with bills already. You know and so that allowed us to be able to take—-be able to make trades now without any emotion attached to it. And when I say without any emotions, what I mean is that without any emotion of having like “oh you know I got to make this money now so I can pay the bills this month”. You know we don’t have to worry about paying bills for several years.

Doug – Yes and I think that a year and a half and I’m covered as well.

Tai – So that’s good to hear that. So I respect the traders. There’s a few things that you say that I really respect. One is that the fact that you lost several trading accounts before you figured out how to trade. And I just want to just pause for a moment from what you’re saying and to share it with the audience. That anytime you pop a trader or a real trader right. If he says that he’s never lost a trading account before I would say that’s full of shit, you know.

Doug – Well I wasn’t done losing.

Tai – Yeah every trader that I have ever met had blown up an account, you know several accounts before they finally figured out what to do. You know what I’m saying. So if somebody tells you “oh I’ve never lost my trading account before”, he’s full of shit. I would ever pay attention to what he says you know what I’m saying. So the traders learn from losing, they don’t learn by making money okay. So the guys that tell you “hey you know I’ve made this money and that money”, and stuff like that, I would be cautious about that. You know what I’m saying.

Doug – Yeah.

Tai – So alright, so talk about this right; I mean, how did your wife and family and stuff feel about you getting into Bitcoin and crytocurrencies? Do they think you were crazy and nuts?

Doug – Yes they definitely did! And most of my friends and people around me at the beginning put up an emotional wall. They just didn’t want to hear it. They didn’t even want to have it explained to them. They didn’t want to hear about it and so that was fine for me because I had the online audience where I could be doing all this stuff and get my fix of talking about it and conversing with everybody on YouTube and my forum you know. Following on with that stuff it did me well.

Tai – Okay so the market has been booming this year you know.

Doug – Boom and bust.

How Do You Summarize Your Approach?

Tai – Yeah boom and bust you know yeah boom and bust you’re right. So let’s talk about this. Let’s talk about you know your strategy right. Like what would—how would you summarize your approach to you know the cryptocurrency market?

Doug – It’s the same pattern that I trade in gold and silver right now, it’s the same pattern I traded for ‘Santa Hats’ on Runescape or whatever item it. It’s the same ‘failed retest of a recent low’ or a ‘failed retest of a recent high’ pattern. And so my trading system is sort of contrarian. I’m looking for that trend to finish and make good bottom formation, then I’m putting in my trade as the market is turning around and showing the momentum is going the other way. I can easily go through all of the specifics of my trade strategy and I can tell you all of it out loud and I can write it all down and that’s how my course stated out. It’s writing out my trading plan. Because I was trading and I wasn’t trading my plan. I would write out my plan and then I’d be doing something different. I’d emotionally make it a quick change decision and every time I went off my trading plan – I lost money.

Tai – Okay is it safe to say that—-because there’s two types of traders out there that I have met and I have coached and I’ve worked with over the years right. And there’s one that they have a one specific strategy and they apply it to ever market. Their gold, silver, stock, futures, crypto whatever right. And this is like, this is what I call the One Trick Pony Traders. And then there’s the other group of traders that they just love different strategies. They got like a strategy to trade in the morning session. They got a strategy to trade in the evening session. They got a strategy to trade in the FOREX market, the stock market, the futures market, the options market. And this is what I call the multi strategy trader. Are you more of the One Trick Pony Traders or are you the multi strategy or are you in between.

Doug – I’m more of the One Trick Pony Traders, yet I’m kind of schizophrenic, where I see a couple different ways to do it. So I have multiple different accounts that each trading account plays a different tune, if you will. This one’s country music, this one’s rock N roll. And so I do have different strategies where ‘this’ account must trade ‘this’ tragedy. That account has to trade that strategy. And I try to stay on as much as I can.

Some of the trading strategies have come from my 25 years of teaching karate. I was a Shotokan Karate instructor for years and years. And as you go through training for a long enough time you get down to a few techniques that are ‘yours’. That you can just ‘nail it’ as soon as that person gets into that range that you just own them, because you’re so good at that technique. So I really look for that one trading pattern, that one moment where the trend is changing the other way. But then I also have risk control rules for trading that are designed, hopefully, to make me smaller when I’m losing and larger when I’m winning. And then practicing those rules at the same time that trading signal comes is always the challenge, especially when the markets only do this once every 18 months or so. So you really only get a chance to practice the whole swing of things every year, every couple of years. It’s really a long slow process for my kind of trading system and it really—I think it works well for what we’re coming up to in the cryptos right now. Because I’m a complete bull and I think that we’re going to be seeing stages and stages of higher moves over the next three to five years. So right now is amazing when you’re looking at price charts.

Tai – Okay so I want to share also that—–I want to echo what you just said that even though I started out as a trader who learned dozens and dozens of different you know indicators, strategies and everything. The bulk of what I do now is also a one trick pony. And one of the things that I’ve noticed that over the years, the more that someone trades or the longer they get, they might start out at the base of a triangle where there’s a lot of strategy they learned. But as they get more and more mature at the trade, they pretty much realize you don’t need all these tools. You can just narrow it down to just a handful of tools and strategies that you use. Like you know I draw out—you know I just use the support and resistance line and where they coincide with a channel and that’s—–where they intersect is where I get in and I look to take profit myself you know. And it’s worked consistently for me. I know that hey you know what two thirds of my trade don’t make money and the other one third, when they do make money, you know they make enough to cover all the loses and some profits. So I don’t need to—-you know it works and I’m going to stick with it and that’s it. I’m not going to you know— done thousands of trades to show that this is going to work. You know somebody else has a strategy that’s more money I’m going to stick with this one because I know it works you know. You know and I’ve noticed that with you and other with other traders that I’ve talked to. Its everybody finds that strategy that they can understand easily and that they can do perform easily, and that’s what they stick with you know what I’m saying.

Doug – Yeah and part of the thing that I’m trying to do in my trading now is to step back far enough, where it’s not taking up my whole day to watch the charts and I don’t have to check into to see where things are, where things are. Time Freedom is really important to me, so that don’t have a schedule, that I don’t have something to do at a specific time… that I can do it when the mood moves me… when the flow of the household goes well… and baby’s fed, and baby’s changed… and I’ve got some time to sit down you know.

What Were Your Top Biggest Mistakes?

Tai – Yeah so let me ask you this right cause you know one of the things that I’ve always you know found helpful and our audience always find helpful Doug is that; What are like would you say is your top biggest mistakes? Because we learn so much from each other’s mistake in the crypto space you know. What would you say is like your top three biggest nasty mistakes that you wish that you would have not have made or that you would have learned sooner you know in trading or in cryptocurrencies in general?

Doug – Yeah in cryptocurrencies specifically, this summer in August of 2017 I did not recognize when the altcoins were going in this downtrend and that Bitcoin was in an uptrend and that they were crossing each other’s paths. And that if I had sold out all of my alts in the middle of August and just held Bitcoin, I would have done double the profit that I made this year. So I was looking for the bull always. As markets came down and made a consolidation, I was still looking for the bull. As they came down to begin the consolidation I was looking for the bull. All the way down. So I made a great profit and I took some huge profits and put them in the bank at the right time. It was really great in June and July but come August, September, October, I was not looking for that correlation. So now a lot of studies I’m doing are putting that correlation together. Rather than just the price chart pattern that I look for I’m looking for those larger correlations with the rest of the market. And then I’m also trying to add in some details with some of oscillators so that I can see a little bit better if I’m looking at a fake-out break-out or a real break-out at those times. Just adding in those things. And that would be—that’s you know, why my book actually.

I wrote a blog post one time a long time ago when I made a losing trade and I wrote all the way through the trade what I was thinking as I was trading it. And so then later, after it turned out to be a really terrible trade and I lost 70% of that trade’s money… I went back and I reread my in journal – and it was ‘The Psychology Of Holding a Losing Trade’. It was all the things that you think as you’re justifying to yourself that it’s going to turn around, it’s going to turn around. And so it really made me go back and restudy my risk control rules with the guy I learned them from and his name is Phantom of the Pits. So if you google Phantom of the Pits you will find his book that he wrote and released in when I was he actually trading in the forums that he was participating in. So I reviewed that all again and try to study about the right way to risk things and protect yourself against the risks that are going to take you out of the game. The risks of the 70% loss because it’s really demoralizing and it’s takes a long time to build back up after a loss like that.

Tai – Yeah that’s the thing that I would say that I struggle with in the beginning, because I did not know that the position side and the best side was so important. And that’s like the most overlooked and the biggest mistake that everyone makes starting out with a trade. It’s that if you don’t survive long enough to catch those big winners you’re not going to make any money you know. And you have to make sure that you size it small enough so that when you know you can have multiple loses in a row and still come out ahead when you get into a coin that has a winning stretch.

Doug – That’s right and so through August and through September through October I was taking little losses, little losses, little losses but I still held the bulk of my money to be in position now. Where I think we’re in a bottom position now and it’s not another consolidation before another stage to down. So now I’m all-in and checking it out pretty regular.

Tai – Okay so to summarize the mistakes that you’ve learned right. You said, you know, not anticipating drop or the change in the market direction. You know in late summer this year. And you said… what your second mistake again?

Doug – Well just holding a losing trade and justifying all the way down. Rationalizing to myself that it’s just about to turn around; ‘Here is that support resistance from the past. It’s just about to turn around. Here it is here…’ And it’s completely wrong! You are only supposed to hold the trades that prove you correct and never hold anything that doesn’t prove you correct right away. So if you buy something and it doesn’t prove you correct. Liquidate it, you’re not at the right moment to get in. And so then by starting off with a small trade at the beginning and liquidating if you’re not right and adding on to the trade when you are correct, helps to reduce the size of your losses and increase the size of your winners, even though you trading the very same patterns.

Tai – Yeah okay. And so thanks for sharing those mistakes you know. What was the third one again? Just so the audience understands it.

Doug – I think those are the main two, was just not recognizing the trend change that happened and right in the middle of August. You see it obvious in the charts now when you look back at it… but I wasn’t watching for it then and even when I go back through my historical journals that I do every week and I watch what I was saying in the middle of August, I was saying ‘doesn’t matter what you buy now everything is going up from here’… because the bottom formations looked so solid. And of course we were wrong. I was wrong.

Tai – Are so let’s talk about some of the hard lessons, besides mistakes you know. What were some of the things that you really have honed or what skills and strategies that you’ve honed that really —- some of the big key take always. The lessons that you’ve learned you know during—-since you’ve been in crypto that been valuable.

What Is Your Most Valuable Lesson In Cryptos?

Doug – Well Crypto really makes it valuable because you can take a specific trading system and actually play it out at a very small micro level. And so I think the greatest thing for me was to start a strategy of doing what I call ‘The FaucetGuy‘. Where I would go to faucets, earn the money, put into these cryptos and start demonstrating that you can start out with very very little and build that up and keep building up. As you’re building up the money, you’re building up the habits of watching your money grow and that starts to flow over from your crypto world into your real financial world with Canadian dollar, U.S dollar. And I think that’s the best thing for me. I went off track of your question there or…

Tai – No no no. You have a different approach that I noticed. You said that you know you like to go to these quote unquote free sources like the faucet and different way to get started if you don’t have a lot of money. So that’s another reason why I wanted to bring you on, so that you can share some of that with our audience. You know because we don’t talk about those things like that on our channel. One of the main reason is because we just haven’t had the time to look at the security behind it and we just are not comfortable recommending that, but I know that you like to recommend some of the different faucets and different places where you can get started with zero dollars you know. And that and I think that’s going to help people that are just starting out, that don’t have a lot of money or maybe they’re in, you know, in countries where they don’t have a very high income and they want to get into crypto, you know.

Doug – I love this book! Actually, I wish to send it back to my thirteen year old self if I could. Just send it to a thirteen year old today. You are playing video games all the time… you could just play this ‘video game’ and start watching this money grow. By the time you graduate high school you should be financially independent and be looking to choose “what do you want to do in the world? What difference do you want to make the world?” Rather than “what job do you have to get to pay the bills?” So no matter if you’re in a developing country, you could make yourself financially independent in a short time with cryptos if the past history is any indication of what the future’s going to do!

I tell the story over and over again to my friends and it still boggles on this my mind. It gets me up in the morning and it keeps me excited. If you would have bought $1,000 worth of Bitcoin back in January of 2011 when it was about 25 cents (that’s 4000 Bitcoin), that $1,000 turns into about 30 million dollars today. So $100 in 2011 turns into three million dollars today. So you know the old saying “Fool me once shame on you. Fool me twice shame on me”. And I don’t want to have the other cryptos fool me twice and miss out on that kind of—What you call it? ‘Life Changing Wealth’?

Tai – Yeah life changing money. Life changing wealth.

Doug – Absolutely! Life changing money.

Tai – We started this channel, this cryptocurrency investing channel because it was the first time that we believed in human history where cryptocurrency has leveled the playing field for the little guys. Whereas before you only had an advantage if you were on Wall Street or you grew up on Wall Street, or you had friends and family or your parents grew up on Wall Street. And now some kid in some you know in Vietnam where I live or some tribe in Africa can take advantage of the crypto market and actually make a real dent, a serious change. You know what I’m saying. If they were to get into like Bitcoin, Ethereum, Antshares. You know if they’ve been watching our channel for the last over four years right and just follow us on there and follow the risk management that we’ve talked about and just get into any one of these cryptos. You know maybe $5,000 or $ 10,000 might not be a big life changing deal for someone that lives in the U.S. or in Canada.

But I know that I had a client one time that as a FOREX trader and the way that his tribe and another tribe were set up, he was looking at a wife from the other tribe but he can’t go pick up his wife and bring her home because he didn’t have the— you know what do you call that? The dowry? He had to get like, like literally he had to get like so many like you know pigs , horse and cows and stuff and give it to the family on the other side of the tribe before he can bring his wife home. And he literally he got into trading and when I was coaching him right. When I met him he wanted to learn how to make the money so that he can go back and pick up his wife.

Doug – Life changing money.

Tai – Yeah that’s to me, that $5,000 that he needed to go and bring in wife home from the other tribe or the other village. It might not be life changing for me or you but that was a wife to him. You know and that’s why we always talk about this is a huge opportunity in the crypto space man. So talk about, so let’s transition a little bit. So while you were trading and doing all this – what inspired you to put a training course or a training program together?

What Inspired Your CryptoCurrency Trading Course?

Doug – It was to hold my own feet to the fire. I started doing the videos on YouTube so I would say ‘this is what I’m going to trade’. Then I will have to answer to my trade going right or wrong to people who are following. People would ask questions. People would ask me why I’m not doing what I said I was going to be doing. You know, so to hold my feet to the fire I would have to answer to my own trading so that I would be more consistent during what my trading rule said.

But also it was a trading journal – it was the easiest thing for me to do rather than writing it all out and writing it all down. I just speak it out. I would do the screen captures and put it on to YouTube or save it for myself and then I go back and look at it. So… what was I thinking August 15th, 2016 about maidsafe coin? I have that record. So I can go back and zip ahead in my video and say Okay that was the error right that minute where I was thinking wrong here. And so then I can study, literally study all the categories of my mistakes and the categories of all my successes. So that when I am right, I feel confident to put the gas pedal on and when wrong, I know that I’m pulling that off. I’m starting to get to know where I make my mistakes all the time.

Tai – So is it safe to say that you’re YouTube channel and your training program and everything served as kind of like a trade log and accountability partner for you to keep you accountable to your trading plan and your trade rule?

Doug – Yes. Exactly. I was creating my own university because I knew I wanted to learn this stuff, I absolutely believed in it and I couldn’t find anybody else who was teaching what I wanted to practice. And so just like when I was a brown belt in karate I started my own karate club when I moved to a different town and that’s how I kept developing my skills as a karate instructor. I just started a club and I did the same here. So that I’m teaching but I’m also learning by teaching because if there’s something I do wrong, I go and make another presentation on that thing. So that I’m studying it. I’m writing it out. I’m repeating it, I’m editing. It’s just burning it into my mind that much more quickly for my own success.

Talk About Your Course on How To Trade CryptoCurrencies

Tai – Okay so let me ask you this. Talk a little bit about your course and your training course and if somebody is interested in it, to follow your strategies or learn the way that you trade or invest you know. We know that we have a specific way that our team invests and trades, but you know there may be people out there may not like it. We have a Cryptocurrency Investing Bootcamp and we’ve got the Cryptocurrency Investment Blueprint that’s coming out. You know I think that the presale, the preorders were coming out in a few days, but it may not be for everyone right. So talk about your program and who it’s for and if they want to learn more about it, what’s the best way to get in touch with you about it?

Doug – I appreciate that. You can go to digitalcurrencytraders.com and the course and the email list is there. There are two different groups of people that I seek to help with this. First of all anybody who doesn’t have any money, I want to help those people. I want to help them learn what I’ve learned and put those things into place. And so I have the free YouTube videos that I do and I do free webinars that you can sign up for on the website. And that teaches about the first third of the book that I wrote, CryptoCurrency Rags To Riches.

This is a book that I wrote “for my younger self”. This is what I wish I would have learned, maybe somebody did teach it to me back when I was younger but I didn’t pay attention. This is what I wish I was repeating over and over in my own mind as I wrote it out. So the first half of it is for people who are just starting out. And then for the more serious people who want to really focus on their own trading then I’ve got the course where I go into the detail about actual chart formations and buying and selling like a trader would. Rather than an investor.

The first half of the course teaches you how to make Bitcoin for free, or you can buy it if that’s faster for you… and then it shows you how to put it into Poloniex vs Bitfinex for lending and use the bought coinlend.org or to manage that for you. So now you have a very low time maintenance way of having your foot in the door with the cryptocurrency as it will slowly grow over time with this interest and there’s nothing for you to do. No time maintenance, very little risk except for the price of Bitcoin going up and down, pretty much.

Then the cryptocurrency trading course is for people who are wanting to trade – and that is a paid course where you get access to all of the trades that I’m doing that are not generally on YouTube. So I show my trading accounts. So I show exactly what I’m in, what my orders are, what I’m doing and why, because it’s my own trading journal. So it’s not a recommendation or a cryptocurrency trading alert service for people who are in the course to say ‘this is what you should buy’, because lots of times I’m wrong and I have to use rule number 1 and get out the trade because it has not proven me correct.

But rather it’s a way for them to look over my shoulder, look at my trading system and see which parts of it, like you say, works for them. Which parts are they comfortable with… And I make the course and community a lifetime membership because there’s no way to quickly learn this stuff. It takes so long for the markets to do a full cycle that you can practice entry and exiting a trade with my system that it may take three years for you to go through two or three of these cycles. So it’s a lifetime membership. I’m not going anywhere, this is my obsession so I’m stuck with it.

Tai – Ok. So you’re—-I have your information a description and then it’s also on the screen right there in front of you under your name. So if you guys are interested in the way that Doug traded or his method or his strategies, you’re welcome to go check it out and tell him that you saw him on our channel and that’s how you found out about him and that would be cool okay. What else—- Like what’s your thought on like the ICO’s? Because I noticed that you don’t talk a lot about ICO’s. Like we do on a lot of research into ICO’s like in this year. There’s like hundred’s ad thousands of them coming out. So because of that we been taking more of a move from the ground approach. Where we go to the team and the projects and interview them and investigate them. Right. So what’s your thoughts and approach on ICO’s? Do you like it? Do you not like it? Are you neutral about it? Do you prefer not to mess with it? What’s you’re thought?

What Is Your Approach For Investing In ICO’s

Doug – I really appreciate your method, getting in there and actually talking to the people who are behind the project, because it’s the people themselves that make the project work, not the technology. The technology with no people doesn’t go anywhere.

Tai – Yeah can you elaborate on that? Because that’s something that a lot of the community don’t understand. They think that you know the tech of everything and then they find out you know—-and cause we invest in people and I’m glad that that you—–I appreciate the fact that you recognize that. That we—-when we go do research we’re researching the people behind the project and not the tech behind it. That’s secondary.

Doug – Yeah it is really key. One thing that made it more poignant for me was I went to a Bitcoin conference back in December, and I saw Tone Vays speaking live. And the Ted Livingston: who created the app Kik, he and another guy were up on the stage talking about ICO’s. And he talked about how he went through the phase of angel investing for his project and he hit millions of dollars of money over a period of time. And he said that from angel investor funding to the next angel investor funding would be six months burn or something like that. And he said that having a gun to your head to produce the results in that specific time was the main key that made him successful.

And he said that if he was running an ICO, you know, he wouldn’t have run away with the money – but he probably would’ve just sort of ‘chilled’ for a while if all that money would come in first. Even though he really believed this project, without that deadline, that ‘gun to his head’ as he said, he wouldn’t have been so motivated to be working on the project. So the ICO’s – even though we may have good people who are really obsessed with their project and they really love it. There are so many psychological factors that slow down the process of getting a nice yield actually come to fruition and be a working project.

So my own approach is to believe that there’s going to be that ramp up of excitement at the beginning and then there’s going to be the price coming down as the project is just going through its development phase. And they’re diligently working away doing the fantastic stuff they are like, that maidsafe team, but the project takes years before its going to be launched and the price is going to be taking off to the moon. So what I’m looking for is that quiet period, that low, like right now in stratus, where the excitement has already come in, the prices come all the way back down – because of the psychology of trading. It’s come down to that point formation now, and as it’s taking off from there, now it’s an interesting ICO to me. Because it’s had that time for the psychology to ride its course.

Tai – So your style is that you like to get in after they’ve done their crowd sale, after they’ve done all the hype and all the excitement had died down and leveled out and that’s when you like to come in.

Doug – Yeah and you’ll see that bottom formation in the charts. You’ll see that see the psychology of the traders in the charts itself as that’s getting ramped up. And you know the insiders, from Stratus or whatever, are buying in – buying when the project is just about to release some new news. You’ll see those patterns in the charts and I made a video some time ago talking about the pre-pump patterns you often see in the charts. And it may not be manipulation, it may be that something legitimate is happening in the project – but you will see it in the charts. (before you read about it in the news).

Tai – And so you do not like to participate in the ICO’s at the time of their happening?

Doug – No there’s only one I ever did and that was Lisk. And I only put in just a little bitcoin into it, which turned out to be fantastic so far.

Tai – Okay alright and so what else would you caution or share with the audience you know. We’re coming to the end of the hour here. What would you like to share with our audience before we sign off and conclude this podcast? And also before you answer, you guys for Doug go ahead and put them in the chat. And then I’ll take the questions from the audience also.

Doug – Yeah I don’t have the chat up so that I can see it.

Tai – No, no I’ll filter out the questions for you. Talk about you know —your last words that you want to share or the lesson that you want to share with our audience here.

Any Closing Words Of Advice?

Doug – If there’s two things I could give you that would change your life, would be that the two leaders that I’ve found changed my life. One would be Reminiscences of a Stock Operator. So if you go and search that out on Amazon, download the book, it’s great so that you can underline things in it and make some notes. But get the audio version as well so you can listen to it over and over and over again. Very good stuff. And second of all if you’re just getting into cryptocurrency trading, then you need to protect your butt from the big things that can go wrong in crypto trading. And I’ll recommend again that you go and search out ‘Phantom of the Pits’ on Google. Search him out then you’ll find his free book. And learn about the risk control rules that he teaches there. And if you take those two gurus that made such a difference for me and follow everything that they teach you. I think you’ll make a big difference for you as well.

Tai – Okay. Well I guess you answered all the questions. You know I appreciate you coming on to our channel right and sharing your experience and the mistakes that you’ve made you know.

Doug – And I’m very grateful to be on here. This is fantastic, I appreciate the opportunity to speak to your audience and hopefully help some more people with the journey that I’ve already taken.

Tai – You know and its funny because last year I made a video where I said “hey these are the 7 influential that you need to pay attention to in crypto” and you were actually one of the channels that I featured on there right. I said “Hey this is you know—this channel is going to be an upcoming channel so look for this in the future”. And sure enough you come out to be one of the more popular channels out there you know that’s reputable out there.

Doug – Thanks appreciate that. That’s fantastic.

Tai – So we on our team you know we pride ourselves on not just finding good trades, good ICO’s, good cryptos you know. But I think that we also you know we pride ourselves on the fact that we like to be able to find good talent out there too. You know we showcased your channel last year. We showcase Adam Myers channel. We showcased Omar back when he only had 2000 subscribers. He’s up t like 60,000 / 70,000 subscribers now.

Doug – He’s amazing. He’s got some great stuff.

Tai – Yeah there’s all these channels—there’s all these great channels that we feature last year and you were one of them. So I’m really glad that I made some good picks there on some talents there.

Doug – Thank you very much I appreciate that.

Tai – Yeah you guys have an interest in what Doug is doing, learning more about his strategies, his trades. Go to the address that’s on the screen there in front of his name and tell him that you heard about him from our channel. And now thanks for watching this video and we look forward to seeing you guys in a future video and this will conclude the broadcast. Thanks guys.

Doug – Thanks again, bye for now.