There are a couple of reasons why stock trading is hard. First, most people zoom in way too much. They're looking at five-minute or at one-day charts; and watch social media when Bitcoin jumps six or 7% in a day up. It's like, "oh, it's over, quick, buy before you miss out." But no, Bitcoin fell from 69,000, and it's kissing 20,000 right now. 5% is nothing and it’s not a change in trend. So,...
There's a spectrum on every investing. On one end, the big Wall Street funds have huge supercomputers and trade ultra-high frequency thousands of times a day. On the other end, you are buying a good stock and holding it forever. And in between, there's a whole bunch of different ways of doing it. As individuals, we can't do this high-frequency thing; you can't compete. We can do the long term...
Let me demonstrate the correct way versus the wrong way. Let's say I've got specific rules which might be a bit technical but doable. One thing we do in technical trading is moving averages which is you take the price today, yesterday and the day before, you add them up, and take the average. If the price today is above that average, then it's probably trending up. If the price is below the...
Why You Should Read Quotes About TradingSmart traders understand that the wisdom of others can provide valuable insight and direction. That’s why quotes about trading are so powerful — they offer lessons in mindset, trading strategy, trading psychology, risk management and more that can guide you toward trading success. Consciously learning from people that have gone before you, who are already...
There are good years and bad years. There are easy years to make money, and there are more challenging years. But what you do is you start with broad market behaviour. The market can either be the stock market, crypto, commodities, or any market you want to trade, it can only do certain things. It can go up, sideways or down, in the broader sense. And within those three things, that trend can...
If you think about money, it's emotionally charged. So if you make some money, you would feel great but if you would lose money, you'd feel bad. If someone steals money from you or you get ripped off, you feel sad and angry. We all have this emotion. We also have all the baggage in the past that money things have happened to us. And we have all the fear and greed about these things happening...
Adrian Reid: Hi, Adrian Reid here for Enlightened Stock Trading, and today I can't tell you how excited I am, because I've got a special guest, and I'm speaking today with Peter Castle, who is a longtime trader and a really cool guy who focuses on... He's a systematic trader but also focuses on the psychological side of trading a lot more than what I do. So I'm keen to learn and keen to...
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The best way for most people to succeed in trading and crypto trading is to adopt a systematic approach. A systematic approach means you have absolute objective rules that tell you when to get in, how much to buy and when to get out. So if A and B, and C happen, you buy. If D or E happens, you sell. This is important for a couple of reasons. The first one is when you have objective rules that...
Volatility is a big one. If you took the S&P 500 index and we've got decades of history, you compress that by about seven because the cycles are much quicker in crypto, and we go through bulls and bears like they're going out of fashion. Thus, you take the S&P and compress it by a factor of seven so that the cycles happen more quickly. Then you take it and stretch it to make the cycles...
Unless you are a systematic trader, the answer is mostly going to be my investment thesis is probably pretty shaky if you're truly honest with yourself. If you've just bought Bitcoin and you're a Bitcoin believer and holding forever, maybe that's a little different. However, if you're going to do that, you've got to be ready for your account to swing by 60-70% down before it continues up, and...
Stock and Crypto traders lose money for a whole bunch of reasons. In crypto, one of the biggest things is we don't know who the winners are yet. There have been some winners to date. However, if you buy a selection of coins or tokens, most of them will probably be worthless if you hold them forever. If you also purchased a bunch of new coins in 2017 when there was a big flurry of activity on the...