How to Become Financially Independent With Trading— 3 Shortcuts to Turning Pro in Record Time

Daytradejeffrey
Aug 31, 2018 · 7 min read

Introduction

Trading is perhaps the most exciting and lucrative statistical game that attracts people in the hopes of becoming financially independent.

Do you want to know why I like it so much?

For one, trading is a game of skill and it offers plenty of chances to win.

Secondly, it is a popular game with massive amounts of different trading products, volatility, and opportunities with which people can win large amounts of money by finding a statistical edge.

If you want to enjoy the rewards of trading at a professional level, you need to put in a lot of time and effort.

With the right amount of practice and experience, even the weakest of traders can turn into successful professionals.

In this article you will learn 3 main things you must do to become a professional trader and one of the key concepts that changed my results forever.

Are you ready to get into it? If so, keep reading.

I love grabbing some sushi before starting a trading session.

Why Most People Will Never Become Pros

You’ve probably wondering what these shortcuts are all about and I’ll get into them in a second but first I want to tell you a story…

A while back I was playing poker in a local Casino, and this kid joined our table who literally had 0 experience in poker.

He joined the table and started asking all these questions: “What does this card mean?”, “How much can I raise?”, and “What do you mean by flop?”

Basically, he didn’t know how the rules worked, he didn’t know what cards meant what, and most importantly, he didn’t know how to win.

He started off by raising, and soon enough he went All-In against a poker PRO.

Do you know what happened?

The guy who had 0 experience won the poker PRO.

It was so funny.

After he won, he got extremely joyful, he was high-fiving everybody and he had a big happy smile on his face.

After that we continued to play, and soon enough, it he wen’t all in again. But only this time, he ended up losing everything against another player who had a better hand.

The moral of the story?

At the start the player got lucky. He won a little bit of money and he was happy about it.

Nothing wrong with that.

But he wasn’t aware that he was surrounded by poker professionals, so he just kept on playing, and eventually the inevitable happened: he lost all of his money.

It reminds me of what Warren Buffet said:

“If you’ve been playing poker for half an hour and you still don’t know who the patsy is, you’re the patsy.”

You must always be aware of who’s the “patsy” in the room.

If you’re trading Bitcoin, you should be the one playing the statistically better hand, not the person FOMO’ng in on some random market action.

Do you want to find out how you can get to the other side of the table?

Here’s how.

Simulate The Future

If you are new to the world of trading, the first step is to learn all that you can about trading and how to do it.

The internet is filled with informative guides and articles about different trading variants, the rules, and strategies for winning, but you must stay focused.

How do you stay focused? Here are 3 main things you must focus on before learning anything else.

· Learn the rules

Trading without knowing the rules will be of no use when you want to become an expert in trading.

Once you understand the rules, fair and unfair, and get an idea about how to “play the game”, you can move on to the next step, which is to trade for a small amount of money.

· Practice

The nuanced skill of trading cannot be mastered with theory.

While reading about it can give you a fair idea of what it is, actually trading the markets helps you get clear insights into the real game and the strategies used in it. It also allows you to build the necessary habits you need to succeed.

How to practice without any risk?

If possible, deposit a small amount of money on an exchange like BitMEX or Deribit, and practice the skill of trading with actual liquidity by trading with a few dollars.

Alternatively, you can practice trading with a free simulator that are offered by numerous services like Tradingview or BitMEX testnet.

· Managing Your Capital

Capital management is one of the key things that you need to know in order to trade at a high level.

The exchanges you choose and the positions you want to use should depend on your skill level and your budget.

It is best to avoid trading with high stakes in the beginning while you are still learning the basic skills.

Also, trading with a small amount of money, will enable you to practice more, while keeping the losses to a minimum.

I know what you’re probably thinking because I’ve been there too.

“Why should I do this when I can start making money instantly by jumping in on a trade signal from Telegram?”, but it’s kinda like what Sun Tzu said:

Plan for what is difficult while it is easy.

You don’t want to be the person who’s learning the skills in the poker table, you want to be the PRO who already knows the rules and has thousands of repetitions under his belt when he’s playing with real money.

Can you already see how preparing for things before actually doing them will help you?

Borrow The Map

If we want to get anywhere quicker than the next person, then the best approach is to seek out someone who has a map and borrow it.

You don’t want to be the person testing your own strategies when you’re starting out.

It’s kinda like my mentor used to say:

“You can recognize a pioneer by the fact that they have arrows in his back and their face in the mud.”

It all comes down to this simple thing what Tony Robbins said:

If you want to be successful, find someone who has achieved the results you want and copy what they do and you’ll achieve the same results.

Watching the very best traders in the game talk you through their decision-making process is golden, and this is why you should invest heavily in online coaching when you first get into trading.

What are some practical things you can do?

· Watch videos, tutorials and even get private lessons.

· Then spend more time analysing your trading than starting at charts or social media discussions.

Until you get into the swing of things I would suggest splitting your time 75% analysing and 25% trading.

I know what you’re thinking, “Why should I pay $500/ hour for online coaching when all the information is already online?”

Trust me, I’ve never heard a person say “Oh no, I just invested all my money on this online coaching and didn’t cut my learning curve”, but hearing things like “Oh no, I just lost $200,000 because of I FOMO’d into a trade” is much more common.

Investing in your skills and knowledge is the only easy 10X investment you can make.

Make Every Decision One Based on EV

Everybody knows that there is some luck involved in trading.

However, despite what some people think, there are also plenty of things traders can do to control their own destiny in the markets.

And this mainly comes from making trades with positive expected value.

If expected value (EV) is a totally new concept to you, then here is an example that might make it clear how important expected value is.

Expected Value Defined

The literal definition of expected value is how much money you stand to win or lose on an average trade.

Obviously the better you are at trading, the more positive your EV will be.

To put expected value into illustration, let’s say that you and another person picked a random number from 1 to 10.

If the number is 5 or less, you would win $1; if the number is 6 or more, the other person would win $1.

Since the odds of getting a number on one particular side is 50%, your EV would be 0.

However, let’s assume that you are now making $5 each time the number ends up to 5 or less while the other person is only making $2 for 6 or more.

You are getting major positive EV here while your trading opponent is getting a negative EV.

Conclusion

At the end of the day, you’ll want to look at every decision you make through these principles. Ask yourself, do I know what I’m doing? Am I following a proven roadmap? What’s the expected value of my actions?

Anything ranging from when you’re eating your breakfast to when you’re setting up a trade or even buying an asset.

If you’re looking to raise your EV and borrow my roadmap I’ve developed for over 5 years..

👉Check out our free training here.

Welcome to a place where words matter. On Medium, smart voices and original ideas take center stage - with no ads in sight. Watch
Follow all the topics you care about, and we’ll deliver the best stories for you to your homepage and inbox. Explore
Get unlimited access to the best stories on Medium — and support writers while you’re at it. Just $5/month. Upgrade