This newsletter is sponsored by PHEMEX, the only exchange that I use to trade crypto with leverage. Sign up with the link above and get some free Bitcoin. I really encourage you to check them out - you know that I never endorse a product that I do not use!Phemex is now offering my subscribers a $120 bonus for signing up! If you are not already trading there, give a try. Here's the link...https://phemex.com/a/ScottMelkerMaking great calls and being able to actually trade them for profit are vastly different skills.This may seem like a confusing statement, but it should be very obvious to those of you that trade actively. A great analyst can make million of dollars a years at a hedge fund without ever executing a trade. You can find amazing chartists, fundamental experts and technical analysis wizards on Twitter and beyond. Great analysts are valuable, can have an incredible feel for the market and its direction. They are great advisors.Most of them STILL lose money as traders.Like everyone else, they are emotional beings who fail when ego and money are on the line.Analysis and trading are worlds apart with regards to the skill set and discipline required to be successful. A great trader is far less concerned with their analysis, understanding that they are likely to be wrong. They are far more concerned with maintaining a zen like emotional state while executing their trading plan, cutting losing trades quickly and letting winning trades run. A great trader is defined by one who has a plan and sticks to it, come hell or high water. They plan their losses without day dreaming about potential gains.Success comes down to the trader, not the strategy that they employ to analyze trades. A good trader can make any analysis method work.Analyzing an asset is generally about identifying a likely direction and making a general prediction about price action. Trading is a far more in depth pursuit. Not only does a trader have to accurately predict direction, they also have to manage a stop loss (not get stopped out before the trade goes their way), decide when to take profit, how much to risk on the position and when to enter. Traders lose money all of the time, even when their idea is “right” because they have a misplaced stop loss or take profit order, have entered at the wrong time, or have sized their position incorrectly to accommodate for volatility.Eliminating ego and the inherent human compulsion to be “right” are invaluable skills for a trader. Right and wrong are meaningless in trading - what matters is profit, which comes as a result of strong conviction in a strategy and plan and iron-clad ability to stick to it once the trade is active.Great analysis is the first step to being a profitable trader, but is barely the tip of the iceberg. It is how you manage the risk based on that analysis that matters. Almost anyone can draw lines on a chart.Paper trade your butt off, find a system that works, then stick to it without emotion. Gauge your performance over years, not days. Be a robot. Protect your money at all costs.Chart Requests stream tomorrow on YouTube: https://youtu.be/hhWPZabxvYAIn This Issue:Bitcoin Thoughts And AnalysisAltcoin ChartsLegacy MarketsImportant Ethereum 2.0 UpdateAnother Hedge Fund Exploring CryptocurrencyGrayscale Continues to Accumulate BitcoinHedge Funds Are Shorting Robinhood FomoTesla Joining The S&PThe Wolf Of All Streets Podcast Ft. Trevor JonesMy Recommended Platforms And Tools
The Wolf Den #116 - Traders Vs. Analysts
The Wolf Den #116 - Traders Vs. Analysts
The Wolf Den #116 - Traders Vs. Analysts
This newsletter is sponsored by PHEMEX, the only exchange that I use to trade crypto with leverage. Sign up with the link above and get some free Bitcoin. I really encourage you to check them out - you know that I never endorse a product that I do not use!Phemex is now offering my subscribers a $120 bonus for signing up! If you are not already trading there, give a try. Here's the link...https://phemex.com/a/ScottMelkerMaking great calls and being able to actually trade them for profit are vastly different skills.This may seem like a confusing statement, but it should be very obvious to those of you that trade actively. A great analyst can make million of dollars a years at a hedge fund without ever executing a trade. You can find amazing chartists, fundamental experts and technical analysis wizards on Twitter and beyond. Great analysts are valuable, can have an incredible feel for the market and its direction. They are great advisors.Most of them STILL lose money as traders.Like everyone else, they are emotional beings who fail when ego and money are on the line.Analysis and trading are worlds apart with regards to the skill set and discipline required to be successful. A great trader is far less concerned with their analysis, understanding that they are likely to be wrong. They are far more concerned with maintaining a zen like emotional state while executing their trading plan, cutting losing trades quickly and letting winning trades run. A great trader is defined by one who has a plan and sticks to it, come hell or high water. They plan their losses without day dreaming about potential gains.Success comes down to the trader, not the strategy that they employ to analyze trades. A good trader can make any analysis method work.Analyzing an asset is generally about identifying a likely direction and making a general prediction about price action. Trading is a far more in depth pursuit. Not only does a trader have to accurately predict direction, they also have to manage a stop loss (not get stopped out before the trade goes their way), decide when to take profit, how much to risk on the position and when to enter. Traders lose money all of the time, even when their idea is “right” because they have a misplaced stop loss or take profit order, have entered at the wrong time, or have sized their position incorrectly to accommodate for volatility.Eliminating ego and the inherent human compulsion to be “right” are invaluable skills for a trader. Right and wrong are meaningless in trading - what matters is profit, which comes as a result of strong conviction in a strategy and plan and iron-clad ability to stick to it once the trade is active.Great analysis is the first step to being a profitable trader, but is barely the tip of the iceberg. It is how you manage the risk based on that analysis that matters. Almost anyone can draw lines on a chart.Paper trade your butt off, find a system that works, then stick to it without emotion. Gauge your performance over years, not days. Be a robot. Protect your money at all costs.Chart Requests stream tomorrow on YouTube: https://youtu.be/hhWPZabxvYAIn This Issue:Bitcoin Thoughts And AnalysisAltcoin ChartsLegacy MarketsImportant Ethereum 2.0 UpdateAnother Hedge Fund Exploring CryptocurrencyGrayscale Continues to Accumulate BitcoinHedge Funds Are Shorting Robinhood FomoTesla Joining The S&PThe Wolf Of All Streets Podcast Ft. Trevor JonesMy Recommended Platforms And Tools