This newsletter is sponsored by PHEMEX, the world's best crypto exchange for both spot and leverage. They are currently offering up to a $1200 bonus for depositing! Sign up with this link and get some free Bitcoin. IF YOU HAVE ANY ISSUE WITH THE NEWSLETTER OR YOUR SUBSCRIPTION, PLEASE CONTACT: PREMIUMSUPPORT@GETREVUE.COBecoming A Full-Time TraderPeter Brandt (who I am bringing on my channel for a livestream tomorrow) is a trading legend, regardless of what you think about his awkward and often abrasive interactions with the crypto community. When he speaks about what it takes to be a trader, it’s a good idea to pay attention.I think that his list of things you need to be a full-time trade is a good start, but that it is actually an underestimation. Let’s go through his points and add a few more. Trading capital (FROM PROFITS) equal to 2X what you need to make each year to liveAll too often I see traders attempting to trade full time without enough cash to support themselves end up trading short term and taking higher risks. This only results in making trading decisions based on the need to derive an income rather than on good trading techniques. Consequently, they end up exiting trades when they should hold or entering trades in the hope of a quick profit. You should never place yourself in the position of relying on emotional decisions as this is a trader’s greatest downfall.I agree that your bankroll should come largely from trading profits earned as an amateur or part-time trader. There’s less emotional attachment to money made in the market than money made from hard work, although the value is the same. That said, I think 2X is a very low estimate and would suggest at least 4X. If you need to make 100K to live and your bankroll is only 200K, that means you need to do 50% on the year just to pay bills and not build your bankroll further. 50% is extremely hard to achieve. In my mind, aiming that high is likely to make someone push harder than necessary on trades. I would suggest AT LEAST 4x what you need, as earning 25% over the year on your entire portfolio is more realistic, but still very difficult.The best way to set yourself up if you want to trade full time is to follow the golden rules of trading and investing - allocating 70 percent of your capital to a medium to long-term portfolio that will perform year in year out, holding 15 percent in cash allow for flexibility and buying dips, and allocating the remaining 15 percent to short-term trading to generate cash flow. This ensures you are protecting your capital by not subjecting the majority of it to high-risk trades. You can play with the numbers a bit, depending on the market, but this is a good starting point.A year’s worth of living expenses saved (separate trading $)Yes. Conventional wisdom is that everyone should have 3-12 months of money saved in case they lose their job. Those people have predictable and guaranteed income. Traders are likely to have major losing streaks and drawdowns, and income is nearly impossible to predict. For that reason, they need a much bigger safety blanket than the average person. 1 year is good, 2 years' worth would be better. Let’s actually make it 3 to be safe.2 to 3 yrs of trading successI think this is accurate. The more years of success before going “full time” the better. Here is another idea.Plan To Lose For 1-2 YearsI know this sounds brutal, but it’s essential that you plan for the worst if you are going to become a professional. The game is completely different when you forego your other income to trade full time. It’s VERY HARD to win consistently, especially when you feel it necessary to be in the market all the time because it is now “your job.” Everything changes when you need to live on the money from trading because you are constantly pulling out funds to pay bills. The reality is that a “full-time” trader is a misnomer. It’s very hard to work 40+ hours a week on trading - once you are good, you can easily identify trades that you want on the chart, set alarms, and walk away. I have found that being a part-time trade with additional streams of income (or even hobbies) is far better both economically and emotionally.Do you think you have what it takes, based on the ideas above?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!In This Issue:Becoming A Full Time TraderBitcoin Thoughts And AnalysisAltcoin ChartsLegacy MarketsChart RequestsThe Pareto Principle The Wolf Of Wall Street Wants Crypto RegulationInflation Is Poised To RiseBlockfolio Is No Longer BlockfolioRobinhood IPO TodayBitcoin Leaving Exchanges In Record NumbersThe Wolf Of All Streets Podcast Ft. Landon CassillMy Recommended Platforms And Tools
The Wolf Den #296 - Becoming A Full-Time Trader
The Wolf Den #296 - Becoming A Full-Time…
The Wolf Den #296 - Becoming A Full-Time Trader
This newsletter is sponsored by PHEMEX, the world's best crypto exchange for both spot and leverage. They are currently offering up to a $1200 bonus for depositing! Sign up with this link and get some free Bitcoin. IF YOU HAVE ANY ISSUE WITH THE NEWSLETTER OR YOUR SUBSCRIPTION, PLEASE CONTACT: PREMIUMSUPPORT@GETREVUE.COBecoming A Full-Time TraderPeter Brandt (who I am bringing on my channel for a livestream tomorrow) is a trading legend, regardless of what you think about his awkward and often abrasive interactions with the crypto community. When he speaks about what it takes to be a trader, it’s a good idea to pay attention.I think that his list of things you need to be a full-time trade is a good start, but that it is actually an underestimation. Let’s go through his points and add a few more. Trading capital (FROM PROFITS) equal to 2X what you need to make each year to liveAll too often I see traders attempting to trade full time without enough cash to support themselves end up trading short term and taking higher risks. This only results in making trading decisions based on the need to derive an income rather than on good trading techniques. Consequently, they end up exiting trades when they should hold or entering trades in the hope of a quick profit. You should never place yourself in the position of relying on emotional decisions as this is a trader’s greatest downfall.I agree that your bankroll should come largely from trading profits earned as an amateur or part-time trader. There’s less emotional attachment to money made in the market than money made from hard work, although the value is the same. That said, I think 2X is a very low estimate and would suggest at least 4X. If you need to make 100K to live and your bankroll is only 200K, that means you need to do 50% on the year just to pay bills and not build your bankroll further. 50% is extremely hard to achieve. In my mind, aiming that high is likely to make someone push harder than necessary on trades. I would suggest AT LEAST 4x what you need, as earning 25% over the year on your entire portfolio is more realistic, but still very difficult.The best way to set yourself up if you want to trade full time is to follow the golden rules of trading and investing - allocating 70 percent of your capital to a medium to long-term portfolio that will perform year in year out, holding 15 percent in cash allow for flexibility and buying dips, and allocating the remaining 15 percent to short-term trading to generate cash flow. This ensures you are protecting your capital by not subjecting the majority of it to high-risk trades. You can play with the numbers a bit, depending on the market, but this is a good starting point.A year’s worth of living expenses saved (separate trading $)Yes. Conventional wisdom is that everyone should have 3-12 months of money saved in case they lose their job. Those people have predictable and guaranteed income. Traders are likely to have major losing streaks and drawdowns, and income is nearly impossible to predict. For that reason, they need a much bigger safety blanket than the average person. 1 year is good, 2 years' worth would be better. Let’s actually make it 3 to be safe.2 to 3 yrs of trading successI think this is accurate. The more years of success before going “full time” the better. Here is another idea.Plan To Lose For 1-2 YearsI know this sounds brutal, but it’s essential that you plan for the worst if you are going to become a professional. The game is completely different when you forego your other income to trade full time. It’s VERY HARD to win consistently, especially when you feel it necessary to be in the market all the time because it is now “your job.” Everything changes when you need to live on the money from trading because you are constantly pulling out funds to pay bills. The reality is that a “full-time” trader is a misnomer. It’s very hard to work 40+ hours a week on trading - once you are good, you can easily identify trades that you want on the chart, set alarms, and walk away. I have found that being a part-time trade with additional streams of income (or even hobbies) is far better both economically and emotionally.Do you think you have what it takes, based on the ideas above?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!In This Issue:Becoming A Full Time TraderBitcoin Thoughts And AnalysisAltcoin ChartsLegacy MarketsChart RequestsThe Pareto Principle The Wolf Of Wall Street Wants Crypto RegulationInflation Is Poised To RiseBlockfolio Is No Longer BlockfolioRobinhood IPO TodayBitcoin Leaving Exchanges In Record NumbersThe Wolf Of All Streets Podcast Ft. Landon CassillMy Recommended Platforms And Tools