The 5 Virtues of a Quality Crypto Trader

I recently decided to pack all of my belongings into my van and move across the country from North Carolina to the Silicon Valley region of California. For those that have never made the drive, its a long one, 41 hours to be exact. My journey spanned across an entire week, which is equivalent to a month in crypto currency time. The trader I was when I pulled out of my driveway in North Carolina and the trader that I am now on the coast of California are like night and day, and I owe it all to the time spent studying on my personal pilgrimage.

On the road, I made it a point to let my mind settle away from any of my personal trades and focus on digesting as much trading material from professionals in the trading worlds of the past. This included books on tape, podcasts, YouTube videos, and hardback books when camping along the way. With my brain packed full of trading secrets and tips from the legends of wall street, I arrived in Death Valley National Park, California, my last stop before the final stretch. That night I knew I had to transfer this new plethora of enlightening knowledge from my head to paper before I got back to trading in my old ways. Here is what I wrote down:

“Today, October 6th, marks a new era in my trading career.

An era of (1) patience, (2) discipline, (3) focus, (4) grit, and (5) self awareness.

(1.) PATIENCE

  • Do not over trade. A single trade a week that is a guaranteed win and a familiar setup is all you need.
  • Let trades come to you, and when they do, go big.
  • Take time to thoroughly evaluate the trade setup, play devil’s advocate and set up your risk management.
  • Your level headed trading plan before your money was involved in the market was a trading plan for a reason, let it ride out. It may not work every time but over a long span of time the wins will heavily outweigh the losses.
  • The power of compound interest. If you make a trade with just a 1% profit return, everyday, for a year, starting with just $3,000 dollars, by the end of the year you would have over $100,000 dollars.

(2.) DISCIPLINE

  • Do not FOMO, there will ALWAYS be another trade.
  • Do not trade tired, mad, drunk or sad.
  • Do not envy other trades/traders.
  • No matter how great the trade looks at the moment do not jump into it without knowing where your stop loss and take profit are before hand.
  • Always protect your profits, in the same manner you would if you were losing money. (If you are having trouble taking profit, picture your current profit margin like it was a loss and realize the damage it would do to your portfolio. Humans have a higher emotional threshold for gaining than they do losing, causing you to have a lesser emotional response to a winning trade.)

(3.) FOCUS

  • Meditate daily.
  • Be present when trading.
  • Trade the market, not your bias. Point out the reasons why your trade could fail and weigh them against the reasons you originally thought it would succeed.
  • Reduce trading time and go outside. Human brains have a specific amount of energy they can devote to decision making per day before those decisions becomeless than optimal.
  • Sleep/exercise more. You might as well be trading drunk if you are functioning on 5 or less hours of sleep.

(4.) GRIT

  • Just like with anything in life, you can do this.
  • “3 feet from striking gold, don’t turn back now.”
  • Pay your tuition to the market. This is a profession just like a surgeon or a lawyer is. Studying is an absolute requirement.
  • Trading is war, someone is victorious and the other defeated. Embody a warrior mentality (don’t give up).

(5.) Self Awareness

  • Observe your emotions before, during and after a trade.
  • Use your emotions as indicators, and sometimes even counter indicators.
  • Breathe.
  • Watch what you eat, drink more water.
  • Figure out your strengths and weaknesses. Triple down on your strengths, avoid your weaknesses.
  • Analyze every trade after closing. (Document them)
  • Read #s 1–5 above.”

Since jotting my thoughts down into my journal on that night, I have looked back at those pages repeatedly to remind myself what I need to do to elevate my trading. Being unaware of how to be successful is often not the problem. Listening to the advice and actually acting on said advice is the issue. We have access to more information than any other generation to have lived before us, we know what we need to do. Its just a matter of putting in the work and making the sacrifice. When I look down and see my own personal handwriting in my journal I remember the place I was in and am more moved to act on it than I would be if it was advice from anyone else. So, I challenge you to make your own list. No one knows you better than yourself.

-Hornhairs