Today's newsletter is sponsored by my friends at BITTREX GLOBAL!Bittrex Global is offering all of The Wolf Den's readers the ability to trade DeFi tokens without paying trading or gas fees through the end of 2020. Bittrex Global is the safest and most secure place for you to trade DeFi tokens like Compound, Aave, Balancer and all of the rest of the top tokens. Use the code WOLF to get free trades and no gas fees now.Sign up HERE: http://global.bittrex.com/discover/defiI have discussed the Pareto principle (also known as the 80/20 rule, the law of the vital few, and the principle of factor sparsity) many times and it feels relevant again now. It states that, for many events, roughly 80% of the effects come from 20% of the causes. If you are patient, many of you reading this will probably profit more this year than you have in a while hence, 80/20.The original observation was in connection with income and wealth. Pareto noticed that 80% of Italy’s wealth was owned by 20% of the population. He then carried out surveys on a variety of other countries and found to his surprise that a similar distribution applied.As a trader, it is likely that 20% of your trades will result in 80% of your profits - so focus on riding winners and cutting losers. Learn to implement a proper position sizing methodology to your trading, ensuring that you can withstand a string of consecutive losses without going bust.Traders tend to fail to cut losers and then impatiently take profits too soon. It doesn’t matter if you have multiple losing trades over the past several months as long as your overall risk on each trade is less than 2%. The Pareto Principle will even out your results in due time, assuming you have developed a known expectancy on your system and employ risk management (position sizing).Ride the winners and cut the losers and never be discouraged that more often than not, your trades will be losers or will be a wash (smaller winner or small loser). It is the small minority of trades and investments that will make you a consistent winner at the end of the year and over the course of a lifetime. Trend trading is boring and will probably give you a home run every one in ten trades with a couple of doubles and triples in between. Be patient, you will be rewarded.It is equally important to consider the 80/20 rule in investing. Not all asset classes and sectors will give you the return you seek, and many will likely flop. The key to taking advantage of the 80/20 rule for investing is being exposed wide enough to catch the gains of best performers. I believe crypto will be that winner but haven’t placed all my eggs into that basket.This concept is especially important at a time when we increasingly see friends and public figures going "all in" on cryptocurrency. It's never a good idea to be all in on anything.Here is more information from wikipedia: https://en.wikipedia.org/wiki/Pareto_principleNOTE: the newsletter is now daily, so the content is spread out. You will still get all of the educational content, trades, news and analysis as before, in a shorter and more palatable form. That said, today's newsletter is long! I share trades as they are relevant and education always on Fridays.If you do desire to get this email more often, you can join the paid version!The paid version is only $15 a month and goes out every single weekday. It is just like the issue you are currently reading! Composing this newsletter is how I spend the majority of my time, and I take the fact that my members are paying me very seriously. I would love to have you become a more frequent part of this community.https://www.getrevue.co/profile/TheWolfDen/membersIf you cannot pay with a credit card, please respond to this email and we can get you setup with crypto. If you do want to pay with crypto, I can offer 7 months for the price of 6, or 14 months for the price of 12 for the inconvenience!I will be LIVESTREAMING paid members' chart requests today on YouTube at 2PM EST!Don’t miss it! Here is the link.https://youtu.be/FjEBF3anlE0In This Issue:Bitcoin Thoughts And AnalysisEthereum 2.0 Blows Past Staking Deposit Target By IntoTheBlockAltcoin ChartsVIDYA OverviewThe Grayscale Commercial ReturnsVisa Launches Bitcoin Rewards Credit CardVoyager Adds Desktop PlatformDow Has Best Month Since 1987UK Authorizes Covid VaccinePhemex Is Giving Away A Tesla!Defi Tokens From Bittrex GlobalMy Recommended Platforms And Tools
The Wolf Den #127 - The Pareto Principle
The Wolf Den #127 - The Pareto Principle
The Wolf Den #127 - The Pareto Principle
Today's newsletter is sponsored by my friends at BITTREX GLOBAL!Bittrex Global is offering all of The Wolf Den's readers the ability to trade DeFi tokens without paying trading or gas fees through the end of 2020. Bittrex Global is the safest and most secure place for you to trade DeFi tokens like Compound, Aave, Balancer and all of the rest of the top tokens. Use the code WOLF to get free trades and no gas fees now.Sign up HERE: http://global.bittrex.com/discover/defiI have discussed the Pareto principle (also known as the 80/20 rule, the law of the vital few, and the principle of factor sparsity) many times and it feels relevant again now. It states that, for many events, roughly 80% of the effects come from 20% of the causes. If you are patient, many of you reading this will probably profit more this year than you have in a while hence, 80/20.The original observation was in connection with income and wealth. Pareto noticed that 80% of Italy’s wealth was owned by 20% of the population. He then carried out surveys on a variety of other countries and found to his surprise that a similar distribution applied.As a trader, it is likely that 20% of your trades will result in 80% of your profits - so focus on riding winners and cutting losers. Learn to implement a proper position sizing methodology to your trading, ensuring that you can withstand a string of consecutive losses without going bust.Traders tend to fail to cut losers and then impatiently take profits too soon. It doesn’t matter if you have multiple losing trades over the past several months as long as your overall risk on each trade is less than 2%. The Pareto Principle will even out your results in due time, assuming you have developed a known expectancy on your system and employ risk management (position sizing).Ride the winners and cut the losers and never be discouraged that more often than not, your trades will be losers or will be a wash (smaller winner or small loser). It is the small minority of trades and investments that will make you a consistent winner at the end of the year and over the course of a lifetime. Trend trading is boring and will probably give you a home run every one in ten trades with a couple of doubles and triples in between. Be patient, you will be rewarded.It is equally important to consider the 80/20 rule in investing. Not all asset classes and sectors will give you the return you seek, and many will likely flop. The key to taking advantage of the 80/20 rule for investing is being exposed wide enough to catch the gains of best performers. I believe crypto will be that winner but haven’t placed all my eggs into that basket.This concept is especially important at a time when we increasingly see friends and public figures going "all in" on cryptocurrency. It's never a good idea to be all in on anything.Here is more information from wikipedia: https://en.wikipedia.org/wiki/Pareto_principleNOTE: the newsletter is now daily, so the content is spread out. You will still get all of the educational content, trades, news and analysis as before, in a shorter and more palatable form. That said, today's newsletter is long! I share trades as they are relevant and education always on Fridays.If you do desire to get this email more often, you can join the paid version!The paid version is only $15 a month and goes out every single weekday. It is just like the issue you are currently reading! Composing this newsletter is how I spend the majority of my time, and I take the fact that my members are paying me very seriously. I would love to have you become a more frequent part of this community.https://www.getrevue.co/profile/TheWolfDen/membersIf you cannot pay with a credit card, please respond to this email and we can get you setup with crypto. If you do want to pay with crypto, I can offer 7 months for the price of 6, or 14 months for the price of 12 for the inconvenience!I will be LIVESTREAMING paid members' chart requests today on YouTube at 2PM EST!Don’t miss it! Here is the link.https://youtu.be/FjEBF3anlE0In This Issue:Bitcoin Thoughts And AnalysisEthereum 2.0 Blows Past Staking Deposit Target By IntoTheBlockAltcoin ChartsVIDYA OverviewThe Grayscale Commercial ReturnsVisa Launches Bitcoin Rewards Credit CardVoyager Adds Desktop PlatformDow Has Best Month Since 1987UK Authorizes Covid VaccinePhemex Is Giving Away A Tesla!Defi Tokens From Bittrex GlobalMy Recommended Platforms And Tools