5 Cryptocurrency Lessons For New Traders & Investors

hey guys in this video we’re going to be talking about five cryptocurrency lessons for new traders and investors and Before we jump into that I’ll just say that right now mid-2017 this is the hottest that I’ve ever seen the cryptocurrency markets you know I’ve been in this space trading and investing Bitcoin for a little over five years now actually since about the beginning part of 2013 and I’ve seen this space grow and develop over the years and so I just want to give you some of my top lessons and some things if you’re new to this because I know there are so many people that are brand new to Bitcoin and cryptocurrencies and I just want to help you guys navigate these waters because it can be extremely profitable if you do it right which you can also lose a lot of money if you do it wrong so you know right now we’re kind of in an interesting time where you know in 2013 we had a massive China bubble and it doesn’t look that big on this chart but price went from about a hundred to over a thousand dollars in the span of just a couple of weeks and you can see this is a one-week chart so every candle here represents seven days so right now you can see over the past two months price has gone absolutely crazy once we broke out above the 1200 level and broke into a new all-time high you can see we’re hovering up here close to 3,000 so it’s damn near tripled in just a few weeks and that is a big big move and what typically happens is whenever you have a market that goes crazy like this it attracts a lot of public attention and it’s funny because a lot of the people that were talking trash about Bitcoin the set the past few years are now having to buy Bitcoin at these really high prices but everybody thought I was crazy when we were accumulating back here in the 200s you know just to give you an idea this this is kind of a funny thing you know dan Bilzerian that guy on instagram he he quoted he said I bought a shitload of Bitcoin today up around $2,800 I believe and then even you know guys like Mark Cuban he just went on a long Twitter rant yesterday talking about Bitcoin and how he’s just now starting to get into it and he was calling it a bubble in all of this which is fine but you know really what we have now is mass adoption unlike I’ve ever seen before you know Bitcoin really is going mainstream and really for the past five or six years like a lot of people just haven’t really paid attention to Bitcoin but here we are so I want to just start by talking about kind of what I think are the most important lessons if you’re just getting started or even if you’ve been in the space for a while I think this can be really helpful to you because I see a lot of people making these same mistakes so the first lesson here is to plan your trades or investments before you pull the trigger okay basically in other words before you take a trade or before you buy Bitcoin or another cryptocurrency make sure you plan what you’re looking to do you know people that just randomly throw money at a market and buy high or typically the ones that lose you know and look there’s always one guy in the comments every time I say this that says Oh Chris it’s so you know you’re just talking about easy stuff whenever I say buy low sell high but there’s a reason why over 90% of people actually do the opposite of what you’re supposed to do you know nobody wants to buy a market when it’s cheap it’s when it’s hot that it grabs everybody’s attention and that’s why bull markets or trends go much further than most people anticipate so one of the worst things that I deal with on a daily basis is people sending me emails and tweets asking what’s your target what’s your target like basically asking me to plan their trade for them so what you want to do is before you risk any of your hard-earned money in any market I don’t care if it’s crypto I don’t care if it’s the stock market Gold real estate whatever you want to do your homework you want to learn what you’re doing first of all and understand where the markets have been in recent history so if you’re just buying and then asking somebody to tell you where you where they think you should get out that’s doing it the wrong way so make sure that you’re able to fully plan your trades look at things like risk to reward look at entry areas look at targets right plan that out and if you have favorable conditions maybe take the trade if not stay away but you know definitely don’t just look for somebody else to tell you exactly what to do and the second thing is stop over trading okay so this is actually probably the biggest mistake that I see new traders and investors make is they are chasing every little tiny move in a market but the reality is that you only need one or two big trades a year to make really a careers worth of profit and I’ll give you an example of this so one of my biggest trades ever was actually Stratos so if we go back I’m going to go to a daily chart and this is one that we bought here at six cents last year okay so this was if you go back and watch my video talking about my two favorite ways to trade altcoins this was an accumulation strategy where we knew this thing was very likely to explode in value in the near future so we invested at six cents which at the time I believe was a three million dollar valuation and then over the next six to nine months you can see where we are right now it’s hovering up around ten or eleven dollars so as a percentage gain that is just absolutely incredible and you really only need one or two of these a year to make a significant amount of money but on the flip side of that a mistake that you could make is trying to over trade every little tiny move because what’s going to happen if you do that is you’re going to burn up money on commissions and fees you’re going to lose money on slippage meaning you know between the bid-ask spread so I actually don’t day trade crypto currencies typically what I do is I swing trade and I look for the much bigger moves my minimum target is about 15% to 30% that’s what it’s been over the past five years or so but recently we’ve had a lot of markets that have just been gaining five hundred to a thousand percent it’s it’s really insane and I don’t expect that to last forever but again you you need to know when to step on the gas and when to step on the brake and over trading is probably the single most common reason that see new traders lose money okay so that leads us into number three which is don’t pick tops okay so people that on both sides of this so there’s people that try to short against a strong trend there’s also people that get out too early okay so the problem is whenever you try to pick a top in a market and look there’s nothing wrong with taking profit at predefined profit targets but if you are trying to be the person that picks the exact top in a market and you’re shorting whenever you’re going against a strong market you’re going to get run over more times than not okay so the fourth lesson here is going to be manage your trades with no regrets okay and let me talk about what that means so what do we mean by no regrets well again just like we can’t pick tops in a market you never know when the markets going to rollover right or if you’re in a short when it’s going to bounce so what you want to do is manage your trade whenever you get in say you buy Bitcoin or you buy aetherium or any of the other altcoins and you’re trying to find where to get out you want to trade manage that trade in a way that no matter what the market does no matter if it crashes against you or keeps going crazy you’re going to be okay and you’re not going to regret your decision because look you can’t control the outcome of a market and the more that you try to force your will on a market the more you’re going to get out of sync with it and get run over so I’ll give you an example again going back to the strat trade I actually closed a majority a big percentage of my trade around 900 percent to a thousand percent gains so down here and at this time you know the charts kind of deceiving because at the time look this was about you know a thousand percent gain or so and what looks like a little move in hindsight was actually a massive massive gain so that’s why I’m still holding part of the position up here around ten dollars but again I took a significant percentage of the the position off the table because for me the market would have crashed after gaining a thousand percent and I didn’t take something off at the table I would have absolutely regretted that so again it’s everything is perfect in hindsight right but what you want to do is trade in a way manage your trades in a way that no matter what the market does you’re not going to have any regrets okay and then the fifth and final lesson here is don’t chase hype anticipate it okay so right now there is a ton of hype in Bitcoin so instead of chasing it and buying at all-time highs what you want to do is anticipate the hype right anticipate when the markets going to panic and that’s why if you go back and you know again $1,000 Bitcoin seems really cheap right now but if you watch the video that I did back here in the first part of 2017 where I was talking about is Bitcoin is it crashing or is it just a temporary bounce you know a lot of people were freaking out when Bitcoin was making these moves back here and my message was very simply like look guys don’t panic the trend is intact right and a lot of people are regretting selling too early down here around you know seven eight hundred and here we are close to 27 or 28 hundred today right so instead of buying all-time highs and instead of chasing the hype wait for a panic wait for the bounce and anticipate the moves you know I always say like trading is like chess right you want to try to anticipate all the future moves that your opponent’s going to throw at you in the case of trading and investing your opponent is the market right so again don’t chase the hype learn first and you know if you’re just getting into crypto currencies at this point you know the the most common question that I get is Chris where should I buy and my first response is always well look I’m not a financial advisor so I can’t tell you what to do but it any time that you’re going to buy a market that’s up a large percentage what you want to do is give yourself enough room in your position size that if the market does pull back strong if the market does crash and put in like one of those parabolic reversals that you can add back lower or you’re not going to get hurt too bad but there was recently somebody on reddit that posted I think it was somewhere up here that he took a mortgage out on his house to buy Bitcoin I don’t know if that story was real or not but that kind of stuff will get you crushed you know there were several people whenever I put my warning out in 2013 around $900 my first blog post ever for those of you that don’t know it was actually negative about Bitcoin you can find it on my blog where basically I said look guys like I think bitcoin is overvalued here at 900 and I think it’s going to do a deep pullback and I got a lot of hate for that but I also got emails from people they were like Chris I put my entire retirement savings in here because I believe in Bitcoin but you know they knew they were chasing and thankfully some people saved themselves and some people got stubborn and actually sold at the bottom here where we were buying so you know again just think about height think about the herd mentality and again guys the most cliche saying that I’ve ever heard in my 15 plus years of trading is buy low and sell high but again guys well over 90% of people do the exact opposite you know it’s often times in investing the stuff that sounds the easiest that’s the most difficult to execute because of one word emotions right fear and greed cause people to do crazy things to go against what they naturally know is what they should do right but again guys if you have any questions about this feel free to leave a comment below I do try to get to as many questions as I can and again I’ve been trying to get back in the habit of doing regular YouTube videos but the markets have just been so insane that my entire life has just been wrapped up managing a lot of these big trades that we’ve had so I’m also going to link up the Bitcoin basics course if you’re just getting into this and you want to learn the right way to trade and invest the stuff you can also get a free copy of my book there and yeah like this video up share it if you know anybody that you think would get value from it and I will talk to you real soon take care

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