Intro to trading strategies


Today, we’re finally going to start putting
all the pieces together and talk about what trading strategies look like. The only sure way to absolutely lose money
100% of the time in this business is to trade impulsively and without a plan. The only way to survive the bubbles, the pump-and-dumps,
and the volatility of ANY market is to have a good strategy and the discipline to stick
to that strategy when things start to get crazy. These last two weeks have been huge in the
cryptocurrency world, with prices skyrocketing across the board. I saw so many people asking things like “is
now the time to sell?! Is everything about to crash?!” or “is
it too late to buy in?! Did I miss the boat?!” These are people without a strategy in place. (Having a strategy means none of that matters) The price of anything should never tell you
when to buy or sell. Your STRATEGY tells you when to buy and sell. Your strategy determines not just when to
enter a position, but perhaps even more important than that it determines when to exit a position. It also helps you determine your risk/reward
ratio, which in turn advises your position size. All of these things need to be planned out
in advance before you even start looking for positions to take. Now, let me make one thing clear: trading
strategies don’t have to be overly complicated. With a portion of my investment in cryptocurrency,
I’m using the strategy called “buy and hold.” I bought into an assortment of currencies
and I don’t intend on ever selling unless my family has a dire financial crisis. I treat them the same way you would treat
a retirement account. So, planning to never exit IS a strategy. I buy in and I have a clear plan for exit:
“never” or “family financial emergency”. That’s a plan. I also have a percentage of cryptocurrency
investment I day trade with. That strategy involves multiple indicators,
calculating risk/reward ratios, all kinds of advanced technical analysis. But it still comes down to sticking to the
rules of that strategy and following them without exception. If you’re curious I trade the strategy the
Blackprint: New Rules created by my friend Al Pickett. I’ll put a link in the description if you’re
curious in checking it out. I’ve used it for years and have been profitable
in both the forex markets and the cryptocurrency markets. Also, over in the bot playlist, which I’ll
link to, we’re working on developing our own trading strategy, check that out. Even if you’re not a programmer, you can
get some value over there and even download the code and try out the bot for yourself. Both simple and advanced strategies require
discipline and that’s the only way to make money in any of this. I know I’ve brought up these two books over
and over again, but they are really excellent sources that go into detail about what I’m
talking about. I HIGHLY HIGHLY HIGHLY recommend you read
them before ever placing a trade. They are Trading in the Zone and What I Learned
Losing a Million Dollars. I’ve linked to them in the description of
this video. In the coming weeks, I’ll be getting deeper
into the specifics of how to develop a strategy, but at the end of the day, it comes down to
what works for you. So, I encourage to start thinking about it
now and developing your own strategy. Think about things like how often you want
to be trading. Do you want to sit in front of your computer
screen all day? Part of your strategy could then be looking
at the 15 minute charts instead of the 1 day charts. Are you the type of person that will be incredibly
stressed any time you have an active trade in the markets? Well, part of your strategy should be that
you close any open positions before bed time so you can actually get some sleep at night. Also, any winning strategy is going to have
a lot of plans for how to deal with loss. Are you the type of person that will try to
double down on a loss? Well, your strategy should probably include
less risk. Anyway, I know you’re all wanting me to
just get to the point and tell you what strategy will make you money for sure, but unfortunately,
I’m not going to do that in this video. Sorry. This is just “Intro to trading strategies.” Start thinking about all those factors I mentioned
and in future videos I’ll show you how to quantify those values and make some use of
it. In the meantime, do check out the Blackprint
trading system and see if it’s for you, and check out the bot videos to get more information
about how to codify your strategy. Bye!

Leave a Reply

Your email address will not be published. Required fields are marked *