Do you feel overwhelmed by the risks of investing in Altcoin Opportunities? Don’t worry, you are not alone! Cryptocurrency trading in 2023 is risky and requires discipline, a solid plan, and a set of rules to follow.
In this article, we will discuss how to navigate the risks of cryptocurrency trading using risk control rules from Art Simpson’s book, “Phantom of The Pits” and trading strategies from Jesse Livermore’s book, “Reminiscences of a Stock Operator.“
Part 1: Rule Number One
Assume you are wrong until proven correct
In a losing game such as trading, we shall start against the majority and assume we are wrong until proven correct! This is rule number one from Art Simpson’s book, “Phantom of The Pits.” The first step to controlling risks is to create a plan for being wrong. This is a difficult task for new traders, especially those who practice price prediction technical analysis. They might believe that they can predict the market’s direction. However, this is a dangerous mindset that can lead to bigger losses.
The first lesson from Jesse Livermore’s book, “Reminiscences of a Stock Operator” is to “never lose more than 10% of your capital on one trade.” This means that you should always use stop-loss orders to limit your losses in case the market goes against you. A stop-loss order is an order to sell a security or exit a trade when it reaches a certain price, which limits your potential loss.
Part 2: Rule Number Two
Press your winners correctly without exception
The second rule from Art Simpson’s book, “Phantom of The Pits,” is to press your winners correctly without exception. Once you have a winning trade, you need to capitalize on it by letting it run. This means that you should not take profits too early and should avoid cutting your winners short. In Jesse Livermore’s book, “Reminiscences of a Stock Operator,” he says that “the big money is made by the sitting and waiting.”
Part 3: Crypto Trading Plan Example
To implement these rules , you need a solid trading plan.
The trading plan should include your entry and exit points, stop-loss orders, and profit targets. It should also outline your risk management strategy, including how much capital you are willing to risk on each trade and how many trades you can take at once.
Here is a Free Crypto Trading Plan Example PDF.
This plan includes a set of rules for entering and exiting trades, as well as guidelines for managing risk. You can use this plan as a template and modify it to suit your needs.
Part 4: The AltSeason CoPilot
Now that you understand the importance of risk management and trend following in cryptocurrency trading, it’s time to discuss the practical steps you can take to implement these strategies in your daily routine. One tool that can help you achieve more success with your cryptocurrency portfolio management is The AltSeason CoPilot.
The AltSeason CoPilot is a trading system that focuses on trading the ALT/BTC spread during altcoin seasons. This system utilizes a simple daily routine that anyone can follow to stay on top of AltSeason trends.
Next, you’ll need to stay up-to-date on the latest market trends and price movements. This is where cryptocurrency analytics tools like Glassnode can be extremely helpful. By using these tools, you can track the performance of different cryptocurrencies and identify potential trading opportunities.
Finally, it’s important to have a disciplined approach to trading.
Trading Discipline Is Not About Willpower
Being disciplined in your trading is effortless when you believe in your methods.
This type of discipline is rooted in a set of beliefs and a practiced skill, and it is not at all the same as teeth-gritting willpower.
In fact, if FEELS GOOD to follow your trading plan when you believe in it!
Trading cryptocurrencies in 2023 can be a highly rewarding endeavor – and it should never be done by guesswork. By incorporating the principles of risk management and trend following, you can increase your chances of success and minimize your losses. Whether you are a new trader just starting out or an experienced investor looking to improve your strategies, following the principles from Art Simpson’s book, “Phantom of The Pits” and trading strategies from Jesse Livermore’s book, “Reminiscences of a Stock Operator” while using tools like The AltSeason CoPilot can help you navigate the risks and reap the rewards of the crypto market.