The Wolf Den #81 - The Weekly Howl, First Edition!
This week is one of exciting launches at The Wolf Of All Streets. I am pleased to announce that The Wolf Of All Streets website is now officially live! Check it out at TheWolfOfAllStreets.io.
This website will serve as a central hub for all things WOAS – I will constantly be adding new content and resources to add value for all of you. As a special thank you as part of this milestone launch, I am giving three lucky winners a one-year paid subscription to The Wolf Den newsletter. These three winners will receive investing insights, education, and trade ideas, delivered straight to their inbox at least twice a week.
To enter the contest, all you have to do is drop in your e-mail address at https://www.thewolfofallstreets.io/contest/. I will be announcing the winners on August 7th.
Without further ado, let’s dive into the week in review…
Paid members received some exclusive trade ideas in the newsletter recently. Several of these ideas and entries were extremely profitable for subscribers. If you want access to these exclusive trade ideas and more, you can sign up here for just $15 per month.
We have had numerous coins (and stocks) do many multiples over the past few months, including over a 10X on ERD. In the past week I chose to share VERY few alt setups. DUSK hit its target for almost a 10% gain. I was a couple of weeks ahead of the curve on XRP, and ETH has done exceptionally well. COMP has failed to trigger yet, while SXP made an 18% gain and hit its target.
There are ideal moments to trade alts, and some times where it is better to be on the sidelines - this week was largely the latter. Not trading alts has saved me a lot of money. I try to help members identify the right times to trade and the right times to sit it out.
Bitcoin
Bitcoin was sideways for weeks, with no clear direction. There were opportunities to trade the chop, but I identified 2 trades that I was looking to take and patiently waited for many weeks. As I said with the chart above on the 21st (for probably the 5th time), I would take a long above the top blue line on the weekly chart or a short below the lower blue line. I took the long above the upper blue line.
This trade went well! As you can see, price broke the top blue line with real volume and has continued up. I also added to this long at $10,800 (the above chart is from Friday). I exited the entire position in steps with an average sell price of $11,500.
Please note, this was just a TRADE. I am ALWAYS net long bitcoin, with most of my portfolio in cold storage.
TUP (Tupperware Brands)
This setup was shared in the newsletter on 7/21. I was looking for a clean break of resistance at $7.98, which happened in spectacular fashion.
As you can see, it broke out and more than doubled in price in a matter of days. You rarely see this type of gain on a large company stock in such a short period of time. It is presently consolidating for another potential move up.
You can see the results below.
It was an incredible week on The Wolf Of All Streets Podcast, brought to you by Blockworks Group. I talked to Peter McCormack and Zoran Kole. In case you missed either conversation, below are the key takeaways from each. Tune in next week, as I feature Anthony “Pomp” Pompliano and Andrew Elliott, CEO of RoundlyX.
The Wolf of All Streets Podcast – Ft. Peter McCormack
Peter McCormack is the host of 2 unique podcasts and a TV show with topics covering everything from bitcoin to politics to pressing global issues. In this episode, we covered his career in journalism, traveling to Venezuela to film, and bitcoin’s role around the world.
Key Takeaways:
“Bitcoin is an example of monetary defiance” - Peter
The risk of hyperinflation is something everyone should consider
“The masses may have to go through the pain of tyranny to understand bitcoin” - Peter
The market is not a good representation of the economy
“Bitcoin’s most important use case is a hedge against corrupt governments” - Peter
Watch on YouTube: https://www.youtube.com/watch?v=c0A7QT6zwJQ
Listen on Spotify: https://open.spotify.com/episode/3Q7uWCcksOpbn5yZo4LiRF
Listen on Apple: https://podcasts.apple.com/us/podcast/the-wolf-of-all-streets/id1500066831
The Wolf of All Streets Podcast – Ft. Zoran Kole
Zoran Kole is a recent college graduate turned professional derivatives trader and crypto millionaire. We covered how he became a crypto trader, why 99% of his net worth is in bitcoin, and how he plans to acquire 100,000 bitcoin.
Key Takeaways:
Day trading crypto, especially derivatives, is risky
Becoming a better risk manager is more important than trading
Trading is an extension of you, it exposes one's strengths and weaknesses
Everything leads back to acquiring more bitcoin, which is why altcoins exist
Bitmex is best suited for experienced traders who understand leverage
Tools of The Trade is available for anyone who wants to learn how to trade crypto
Watch on YouTube: https://www.youtube.com/watch?v=8TEgMDFRZu8
Listen on Spotify: https://open.spotify.com/episode/48DHkrdeeDKrHvzzkxpHkc
Listen on Apple: https://podcasts.apple.com/us/podcast/the-wolf-of-all-streets/id1500066831
Visa and Mastercard Moving Into Crypto
It's a race to the finish, as a slew of major institutional payment companies are releasing public statements on their progress exploring digital assets. This week, Visa and Mastercard took center stage. For the masses who haven’t picked up on crypto, seeing the world’s largest payment processing network move first will aggressively drive conversion to the crypto space.
Visa released in a statement, “We believe that digital currencies have the potential to extend the value of digital payments to a greater number of people and places. As such, we want to help shape and support the role they play in the future of money.”
The writing is on the wall.
Florida Teen Behind Massive Twitter Hack
The 17-year-old is one of three people charged Friday in the July 15 hack of Twitter.
Add this to the “Florida Man” list. The hack was allegedly perpetrated by a 17-year-old from Tampa. At first sight, what may have been bad publicity for bitcoin has potentially turned out to be the opposite. Once again, centralized systems failed from one single point of attack - bitcoin’s decentralized nature highlights why we can’t trust centralized systems.
For those who are still skeptical, Jack Dorsey the CEO of Twitter has one word in his bio - “#Bitcoin.”
Many of you know that I was one of the accounts targeted in the hack and was without Twitter for a few days. In an even more interesting twist, the State Attorney in Hillsborough County (Tampa) who is investigating and prosecuting the case is my best friend from childhood, Andrew Warren. What were the odds of that!?
In addition to the podcasts, I moderated a panel in the Cointelegraph Crypto Traders Live event on the role of emotions in trading and participated in a Phemex livestream. A few key insights from each are summarized below. I learned a lot speaking with these brilliant traders.
Cointelegraph Crypto Traders Live
I moderated a panel during Cointelegraph Crypto Traders Live, which was REALLY FUN. This was the world's largest live event, fully dedicated to crypto trading. The panel was entitled “Keep Calm and Trade: How Not To Fall Into Emotional FOMO and Analyze Market Sentiment.” You can find the video 6 hours and 38 minutes into the linked video above. The artwork is also amazing.
Key Takeaways:
Crypto sentiment moves at a fast pace
Fade the media headlines, they are almost always late
Market cycles exist and will play out whether we want them to or not
The bitcoin run this time is more largely driven by institutions than retail
Setting stop losses and taking profit are musts for long term survival
Social media is a powerful tool that is moving the crypto market
This major crypto cycle is still very much in the beginning
Phemex - The Secrets Of Being A Successful Trader
I participated in a livestream with some impressive traders to cover “how to be successful and make money trading crypto." This was presented by Phemex, one of our amazing sponsors! Joining me were Koroush AK, Josh Rager, and Ryan Sperin, known on twitter as "CanteringClark."
Key Takeaways:
Crypto trading is almost entirely technically driven
Have a trading plan, start simple, find what works, and then build on it
All that matters is managing risk and emotions and avoiding losses
A life outside of trading can improve your trading
No amount of money is worth losing sleep
Risk management is knowing when to size up and down on a position
Almost every market in history trends up
The most impressive people in the world all share one thing in common: they are constant learners. We should all strive for the same. With that in mind, here is your quick financial education lesson of the week.
Derivatives 101
By Sahil Bloom:
The term "derivatives" is often used in the world of finance. But for most people, it is just another example of complicated financial jargon. Often used, seldom understood. Let's fix that. Here's Derivatives 101!
A "derivative" is just a contract with a value that is based on something else. Its value is DERIVED from something else. If I create a contract called the SB that is linked to my # of Twitter followers, that is a derivative. The contract value is derived from my followers.
In financial terms, derivatives are a security that is tied to an another asset - called the "underlying asset." The underlying asset could be: Stocks; Bonds; Commodities; Currencies; Interest Rates. Really anything can be an underlying asset. Get creative!
Derivatives can take on many different forms. The most common are: Options; Futures/Forwards; Swaps.
Derivatives are widely used by investors. The most common use cases are: Hedging - offset/protect a position; Speculation - bet on price moves; Leverage - amplify a position. Naturally, using derivatives for a hedge is less risky than using them for leverage.
This was a very basic, 10,000-foot overview on derivatives, their common forms, and their use cases. I will cover the common forms in additional detail (with simple examples, of course!) in future threads. So that's Derivatives 101! I hope this was a helpful primer.
This newsletter is sponsored by 2 amazing companies: VOYAGER and PHEMEX.
I use Voyager for my spot trading and investing (and to compound interest) and I use Phemex for trading with leverage. Sign up to both with the links above and get some free Bitcoin. I really encourage you to check them both out - you know that I never endorse a product that I do not use!
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My Recommended Platforms And Tools
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This is where I trade with leverage and can also trade spot with no fees.
I use RoundlyX to buy small amounts of Bitcoin every single day. They automatically round up my credit card purchases (with 10x multiplier) and invest them in crypto. Absolutely brilliant. Passively invest money you don’t need without a thought. Further, they have integrated with Voyager (see above) to offer commission-free purchases.
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This is where I spend my days teaching and learning! Our Discord group is a one stop shop for everything you need to learn to trade and control your emotions. Feel free to DM me on Twitter or respond to this email for questions.
Self-Directed IRA for Americans - allows you to invest in Bitcoin and any other asset for your retirement, with all of the tax benefits of a normal IRA.
Concierge Phone Service for Americans that protects your from SIM Swaps and other phone related hacks. I cannot stress enough how amazing this service is.
A new crypto rewards debit card that I have been testing and loving. I use both the virtual card online and the physical black card at actual retail (I will do this more after COVID!). They offer 6.38% cash back in crypto, which is really astounding.
Bitcoin Thoughts And Analysis
BlockFI is where I personally store part of my long holdings. They offer up to 8.6% annually, compounding, depending on the asset (BTC, ETH or GUSD), which is much better than any legacy savings account or investment.
Follow me on Twitter at @scottmelker. This is where I am constantly updating my trades and sharing ideas.
That’s it for this week’s Weekly Howl. We hope you have a great weekend. As always, if you or any of your friends are interested in subscribing to receive exclusive trade ideas and content, you can SIGN UP HERE for just $15 per month.
The views and opinions expressed here are solely my own and should in no way be interpreted as financial advice. Every investment and trading move involves risk. You should conduct your own research when making a decision. I am not a financial advisor.