Two Key Concepts For
Better Cryptocurrency Trading
Reduce risks and magnify profits in
a very unfavorable game
Hello and thanks for joining me on this presentation “two keys to help your cryptocurrency trading”. My name is Doug Lampi, and I am the creator of the website digitalcurrencytraders.com and our cryptocurrency trading course.
I invite you to leave your comments below and share your thoughts about this report.
It’s important that you do this because I will answer your questions at our next free webinars!
It is my mission to share unique powerful training for you.
So I read each and every comment that you post and I look forward to answering all your questions here and on the live webinars.
In this presentation, I’ll share two important belief systems – or ‘two key concepts’ – that many winning traders already understand.
These two keys can help you no matter what your style of altcoin trading.
By the end of this video you’ll know about these two key concepts that will
- keep you in the game for the long term, and
- ensure you can maximize the opportunities when they present themselves.
Trading Is A Very Old Game
You may know that stock trading is well over a hundred years old. And if you think that the game of trading is very very old… then it’s better to know the rules before you start the game, wouldn’t you agree?
You’d want to know the rules so that you can plan a strategy to give yourself the best odds of winning the game.
Isn’t that right?
Trading, be it stocks, commodities, Forex or altcoins is a game that’s been around for a very long time and if you play it right you really can like Tai Zen says ‘make a ‘life-changing’ amount of money’.
And that’s right – extra cash – that you wouldn’t have had, if you had not been trading!
But here’s the truth about trading
The first mistake that most new traders make, and I certainly made this myself, is to think about how much money they might make.
It may sound like a contradiction to point out that it can be a ‘life-changing amount of money’ and then say that ‘you shouldn’t focus on how much money you might make.’
But consider this: the top whales trading cryptocurrencies will very likely all tell you this very same thing:
Trading is not a favorable game
And here’s what I mean
Profitable traders already know this but there are very few new altcoin traders that realize the critical importance of this fact: that trading is not a favorable game.
You must give this matter careful consideration. The following example may highlight some of the significance of what I’m saying here:
I ask you which is more dangerous?
Parking your car on a busy street? or trading altcoins?
Which is more dangerous?
Race car driving? or trading altcoins?
What if you made a mistake while parking your car on that busy street… and you opened your door into traffic? Odther drivers
would swerve around to miss your car door… wouldn’t they?
And what if you were a race car driver and you made a mistake and you spun out of control for a moment… the other drivers would try to avoid a collision with you… isn’t that right?
In both of these cases you made the mistake but other people change their behavior so that neither one of you experience the negative consequences of your error.
But this is not the case in trading
In fact, it’s just the opposite!
If you make any mistakes in trading – other traders are waiting and trying to take your money away – as quickly as possible!
No one swerves around you if you make a mistake – instead, they happily take every single coin… without ever knowing anything about you… by this measure trading altcoins is even more dangerous than racing a car.
But it’s worse than that with trading altcoins.
We have the problem of manipulation and outright people lying in order to make you make mistakes so that they can take your money away.
This is far more dangerous than race car driving!
In this presentation you’ll learn a couple strategies on how to stack the odds into your favor in this unfavourable game.
If we are to win, in such an unfavorable game, then we must have two rules that.
- protect us from the worst risks in trading
- and expose us to the greatest opportunities
You may have heard such wise trading advice as
Buy Low Sell High
Hold your winners, Not your losers
Cut your losses. Let your profits run
While this trading advice is all true and helpful… ‘buy low and sell high’ is just too vague; it doesn’t offer enough specific advice.
What’s worse, most traders plan for the profits that may come instead of preparing for the fact that trading is an unfavorable game.
In order to get protection from the worst risks, we can use a strategy that will act like a seatbelt for altcoin traders.
And the perspective shift is to know “who says when you are wrong”.
Some traders will teach you that ‘you should do your analysis take your position in the market and then let the market prove you wrong. Occasional drawdown is just part of the game.’
With this thinking, many new all coin traders buy a coin, or worse an ICO Token, and then they lean back and wait for the coin to drop in price to prove them wrong, or rise so they can take their winnings.
Protection From The Worst Risks In Trading
We need a ‘seatbelt’ that’s going to protect us from the biggest risks.
Consider this typical short-term trading plan;
‘Trader John’ buys a coin, and then he checks the charts for an update – to see if he’s right or wrong about the trade.
John buys the coin at 324 and he will sell out of it if the price breaks below the recent lows of 319 and he plans to take profit if the price rises…
…so do you agree that
John is letting the market prove when he is wrong?
In this unfavorable game, a trader must control every aspect that is within their control.
You must decide when you are wrong – and only let the market tell you when you are right.
You personally must have this control over your trades.
You cannot control the prices on the chart, but you can control the coins that you keep in your portfolio.
This is the first key concept – and I want to repeat it:
You must decide when you are wrong you only let the market tell you when you are right.
If we study that first key concept closely, it alone – can help you become a winning trader no matter what your style.
And by the end of this video you’ll know the second key concept as well – and you’ll see that together, they can
- keep you in the game over the long run, and they can
- keep you ready for when it’s time to take big profits
It is your job to know when you are wrong – it is not the markets job to tell you when you are wrong.
It is the markets job to tell you when you are right – and it’s not your job to tell the market.
You’ve got to go over this a few times before that distinction really becomes clear – and the next example might help illustrate that.
When Are You Wrong?
When you’re not making money. This is your job as soon as you are not making money in your trade. You’ve got to get busy. This is your job happening.
When Are You Right?
When you are making money. There’s nothing for you to do. This is not your job. This is now the markets job.
The Trade is Profitable Now What?
One of the greatest challenges for a new trader is “When do I sell out and take my profits?”
Often people will fall into the bad habits of
- wanting to take profits to prove they are right.
- being greedy and wanting, or needing, money now.
- having lost in the past, now fearful that the price will retrace and they will lose the profits they have…
What would happen if you get those two key concepts backwards?
- Let’s say you let the markets decide when you are wrong… then you will often find that your losses are bigger than they should have been…
- And if you decide when you are right, you may find that you are falling into the bad habits, above, and taking your profits too early – and your winners are not as big, nor as profitable as they could have been.
Over time, you may find that your winning trades don’t really offset the losing trades – and, on average, you’re not really making any profits by trading.
With the second principle we’re going to let bigger profits run! The second key concept isn’t just that the market confirms that you are right, but that you must add on to your trade and be bigger when you are right.
If you are going to be bigger when you are right, then you need to have some additional money available – so that you can buy more of the coin that you are correct about.
In order to shift the odds into your favor you must plan your trading from the very start – so that you can be bigger on your winning trades and smaller on your losers.
This means that you cannot put on your full position at the beginning of a trade.
As a bonus, because you do not put on your full position at the beginning of the trade, and you are wrong – then your losses will be smaller.
The second key concept says that you add on when the market proves you correct so that, on average, your winning trades will make bigger profits then your losing trades make in losses.
Together, these two strategies shift the odds in an unfavorable game – and they provide you with a slight edge that can make all the difference in your success.
These two key concepts again:
You decide when you are wrong. You keep control of that. This is in your hand. You get out more quickly and your losses are smaller
You let the markets decide when you are right. You stay in profitable trades longer – and with the second key concept, you add on to profitable trades and your winners are bigger.
The first concept acts like a seat belt and protects you from the worst risks that can happen, and the second key acts like a rocket pack when you are correct and it makes sure that your winners are bigger.
Your Profitable Trading Routine
Add these two key concepts to your plan… no matter what your plan is – and you will have a better routine of making money trading cryptocurrencies.
Your trading plan will now be better prepared for the fact that trading is an unfavorable game – and it will give you far greater odds of success.
Your trading plan will now protect you from holding the losing trade – while at the same time leaving you ready to take full advantage of opportunities when they do present themselves.
When you decide when you are wrong, you get out more quickly. You avoid losing big money and you avoid that demoralizing effect that a big move against you will have.
Even in a down market – you experience the positive reinforcement cycle of losing correctly – while always remaining prepared.
When the markets confirm that you are right you add to your trades.
This reaffirms your correct thinking. The bigger size trades will result in bigger winnings.
The two keys for better cryptocurrency trading?
- You control your losers
- The market controls your winners
You now have an important introduction to these two key concepts that together can keep you in the game for the long term by keeping your losses smaller, and making sure no big catastrophic losses hit you… and they also keep you ready for when it’s time to put the big trades on and make the big profits.
Where can you learn more?
If you are interested in learning more about this powerful trading philosophy – I’m going to refer you to the master I learned it
There’s no way that I can explain it nearly as well as he has in his book:
I will share my secret with you because he shared it with me for free – and the author gave me permission to share it with you.
I wanted to always have a copy of Phantom of the Pits available for myself so I uploaded it to my website where you can download that PDF without any advertising and stuff in it lumbridgecity.com/phantom
(Or you can just google ‘phantom of the pits‘ and you’ll find other copies of it for free as well…)
I really encourage you to read carefully through what he teaches. This blog post and video are just a light version of it, for sure.
Again, Thank You for joining me! My name is Douglas Lampi i am the creator of digitalcurrencytraders.com
Leave your comments below. I’m very interested in your thoughts about this trading methodology. Our private trading community is delving deeper into this where we’re doing the mathematics to back test this trading plan against other methods of putting on your trade and taking their profits!
So thanks again. I read each and every one of your comments below this after I’m done in the presentation and I look forward to having you guys on more future webinars.