Crypto Trader’s Mindset & Markets Psychology Training | Bitcoin Lifestyles Club

Crypto Trader’s Mindset & Markets Psychology Training | Bitcoin Lifestyles Club


Caleb Wright here from Bitcoin Lifestyles
Club, and today I’m going to provide you with training that will help you achieve a winning
traders mindset as we take a careful look at the psychological aspects of the market
and trading, that you surely can’t ignore, if you want to survive and have real success
with the crypto markets. Of all the crypto educators I see out there,
I don’t see enough of them covering this all important topic before getting onto the more
advanced training. So without further ado, welcome to the most
competitive arena in the world. Crypto, an emerging financial market that
the world’s top institutional traders and investment bankers are just starting to dip
into, you have to quickly realize that your up against some of the sharpest, fastest,
most intelligent, well informed, inexplicably irrational, and in many cases, unethical minds
in the world, who are all aiming to win your money in the zero sum game we call the ‘crypto
markets’. Your everyday competition includes, computers,
servers, and automated bots that are reacting to the market faster than you ever could. Traders who have more skills, knowledge and
experience with financial markets than you. Banks, investment funds and whales who have
more funds and resources than you. Many of these same entities have inside information
that you don’t. Traders who are spreading misinformation online
to the benefit of their trade positions, so they can win over you. And of course, last but not least, the voice
in your head that has you second guessing yourself and trying to get you to stray from
your original trading game plan. Before you can learn how to win, you gotta
learn how to survive, because its a jungle out there. It’s absolutely essential to learn how to
stay in the game, by avoiding the mistakes that so many noobs make that end up REKT. Which is a term created and popular within
the crypto community for describing a trader who has lost a lot of money on a trade, REKT
his portfolio or otherwise. So how do you survive in the crypto market? You learn the lay of the land, by understanding
market psychology and having a solid entry and exit strategy in place. In other words, once you develop and understanding
of how the various actors and levels of traders and the masses think and act in the various
situations that you encounter in the market, and you have a solid game plan in place that
you stick to. You ready to master these life changing skills? Lets get started. Next we’re going to go over, the 90-90-90
rule, that’s 90% of traders will lose 90% of their money in 90 days. Yes, the financial markets are absolutely
merciless. For all the winners, there are an equal amount
of losers. The majority of people who try their hand
at trading without proper education and training will end up failing or becoming REKT. So obviously the key to your success is to
not follow in the footsteps of the majority. And to carve your own path to success by doing
virtually the exact opposite of them. The majority is selling, you want to be buying. The majority is buying, you want to be selling. Does that make sense? We’re going to talk a little bit more about
that. So how does the majority of noob traders fail,
it’s because they have a ‘Losing Trader’s Mindset’. It’s because the majority of traders out there
are new, inexperienced, uneducated and have what we call, ‘The Losing Trader’s Mindset’. It’s what the majority think and do. Like buying too late when the price is already
rising or pumped. They’ve already missed out on the best profit
by not being in position before the pump. And they are also increasing the risk of going
into the negative when the price corrects. They sell when the price has been falling
and dumping. They already missed the best time to take
profit, when it was going up. And they may even be losing money on this
trade. Another thing a newbie trader will do, is
they’ll buy too early when the price is falling or dumping. They end up entering the trade, and then it
dumps down another level in price, and many of them end up just selling it at a loss. And then you’ll have when they sell too early,
when the price is pumping. This kind of newbie trader is really fearful
of missing out on the profits, and wasn’t having confidence in his position in the first
place. So he jumps out of the trade the moment he
makes a small percentage and then the next thing you know, the coin moons to higher levels,
and he misses out on a major profit. Then you have the traders that hold onto losing
trades and positions too long, when they should have exited and reallocated their resources
to a higher probability trade. They hold onto winning trades too long, and
the trades end up turning negative. And this is just a result of greed taking
over, when someone is winning. A lot of newbie traders will just hold on
thinking it will never go back down. Then you have the new traders that are taking
on big position sizes and too much risk per trade. They could literally blow their account with
a few bad trades. With trading its all about staying in the
game to trade another day. And this brings us to the next problem that
a lot of newbie traders think they need to trade everyday. And so they try to. They try to trade as frequently as possible. And will even find themselves forcing trades,
where there are no opportunities, and they shouldn’t be making any moves at all. Then you have the newbie traders that think
that they are always right. you can’t think that your always right. Sometimes you need to pivot and move in another
direction. And the three major mindsets that most commonly
lead to the above mistakes and leave uneducated traders REKT are… The mindset of getting rich quick, of which
the big position sizes and risking too much at once is a symptom of that mindset. Then you have FOMO, which is another crypto
community term, that means ‘Fear Of Missing Out’. That’s when these new traders will see coins
that are pumping and they’ll buy into the pump when they should have already done their
research and bought when it was low. And then of course you have impatience, and
that’s where you have those traders that are selling too early before they get the real
profit. Or their buying in too early before a coin
has fully corrected. And so they end up in the red, and possibly
even losing money when they sell the trade that they don’t even have confidence in. Maybe they haven’t done research on the asset
or whatever, and they just took advice from some talk on social media like Twitter. So now we’re going to get into a little bit
more detail into each of these things that we just went over. It’s already too late as the price is taking
off in either direction in both of these scenarios. By the time you buy in, it’s potentially already
at or near the top of it’s potential gain. By the time you sell, it’s potentially already
at or near the bottom of it’s correction. So do not chase exact tops and bottoms. You have no way of knowing exactly what they
will be. It’s not an exact science. And as you ponder these ill fated kind of
trading decisions, the longer you wait, the less percentage you will make and the higher
risk you will end up taking on, with a very high potential of getting REKT on the trade. The key to success is to be in position for
these market moves before they happen. It’s best not to be chasing profits after
significant price movements have already happened. Next we have ‘buying breakouts’ and ‘selling
breakdowns’. As a rule of thumb, you should not universally
buy breakouts or sell breakdowns. Some breakouts and breakdowns will completely
fake you out. They need to happen with good trading volume
to complete the movement higher or lower, depending on which direction that it’s going. Understanding the phase of the market you
are in, will help you to better understand the level of probability, of whether the potential
breakout or breakdown you are looking at is going to complete it’s impulse or reject. It’s commonly taught in trading courses to
buy breakouts and sell breakdowns, but there is more context to making these decisions
with successful results. It’s not that simple, or black and white. And again if the majority of traders are doing
it, then it’s an area you can gain an edge against them, by just being in position with
your trade before these moves happen in the market. And then you end up winning over them, when
your selling and they are buying. So instead of buying breakouts and selling
breakdowns. You can buy into weakness and sell into strength. When the price is falling and the crypto community
is in panic mode this is a good time to buy the dip. Or buy a low position of whatever asset your
looking at. I usually watch social media like Twitter,
for this kind of behavior. When the price of an asset is moving sideways
on support, while in the early phases of a bullish trend, and people are sleeping on
the coin… this is the best time to buy. When the price takes off, and tests former
highs, or creates new all time highs, or at least breaks through the resistance level…
this is the best time to sell. And of course for an educated trader, there’s
more to it when it comes to reaching these decisions through proper market analysis. And of course I’m sure all of you know Warren
Buffet, one of the most famous and wealthy investors in the world, and this quote here. Warren Buffet says, “We simply attempt to
be fearful when other’s are greedy and to be greedy only when others are fearful…
when we are looking at maximizing our investments and trades in the market. So a big tip here. Don’t always run with the crowd. There’s value in being counter intuitive and
doing the opposite of the majority. And just to sum up this section, when markets
are crashing to new all time lows, YOU are buying. When markets are going parabolic, you are
implementing on your exit strategy to maximize on your profit. And being a successful trader can be just
as simple as that. So the next thing that so many newbie traders
do, is they hold onto losing trades and positions. With the cryptocurrency spot market. You can just hold your positions for the long
term. No matter what happens to the price in the
short term. But that is called investing, not trading. And you want to learn how to trade and actively
profit. That’s why your looking at this training. If you end up holding onto a position that
goes into the red. You need to be patient, many people give up
and sell before it comes back into profit. When you hold onto positions that go into
the red, it locks up your trading capital, so you don’t want to let this happen often
or at all if possible. But of course as a trader, your going to experience
wins and losses. And that is for sure. There’s no way to escape that. So be careful which coins you trade period. Stick to quality. Because some coins just die, and never come
back into profit. Development stops, they exit scam, or it just
gets de-listed due to a lack of interest and trading volume. Something for you to remember, is that the
pain of losing is always greater than the pleasure of winning. So with that you have two paths here. You can cut your losses quickly and methodically. Or be mentally and financially prepared to
hold for an indefinitely long period of time, until your position comes back into profit. Hence why you need to be really careful, which
coins and assets that you decide to trade, and only stick to the coins with the strongest
fundamentals in the market. That way you can hold in confidence when you
do get into these situations. Then the next mistake that people make, is
they sell to early when the price is pumping. When people do this, they are clearly lacking
confidence in their trade entry and strategy, and perhaps even the asset they are trading. Perhaps they bought on hype and have done
no research of their own. So they miss out on a good opportunity, as
the price continues to rise. Then you have FOMO, Fear Of Missing Out. They fear missing out on the profits but end
up actually losing a lot of profit by selling too soon due to fear of missing out. Educated traders will have a better idea of
what is possible for profit, on each particular trade. And have an increased rate of success by using
a proven exit strategy that works for them every time. Once you have a game plan, you have to stick
to it. It’s the only way you can maintain consistency
in your trading strategy, your winning probabilities and maximize your overall results. The next mistake that people make, is holding
onto winning trades too long, until they turn into losers. It’s most often a result of greed, and the
lack of a specific trading game plan. Uneducated Traders and moon boys will tend
to think that the price will just keep going up forever. But that’s false. Markets never move in a straight line. They always have to correct. Again these traders lack a proper exit strategy,
and when the price turns down on them, they refuse to exit the market until the price
bounces back, because for whatever reason they absolutely ‘know’ that its going to bounce
back, they trust themselves too much, because ‘they can never be wrong’ for example. But then it never does within the time frame
that they were hoping, and they will end up selling at a loss when they could have ended
up exiting the trade break even or at a small loss. Because they setup a proper stop loss. But of course so many traders don’t do this. The majority of these noob traders will have
bought as the price was pumping near the top into over hyped coins like Ripple XRP for
example. Or even into legit currencies like Bitcoin
at any time they are peaking and FOMO is taking over in the market. And many of these same traders will wait until
the market is back to lows before they give up and sell their holdings and capitulate
to the market. The key to winning consistently in the crypto
trading game is to take the money that is in front of you, as profitable trading opportunities
arise. You never know exactly where markets will
find their tops and bottoms. An educated trader can use technical analysis
strategies to speculate upon the potential price levels of tops and bottoms. Maybe not exactly, but definitely within reason. And according to that data, they buy or sell
profitably in levels as the price moves towards the potential speculated tops or bottoms according
to their analysis. The next classic mistake that new traders
make is they start trading with big position sizes. And they take on too much risk. This can end up being an up and down strategy
for inexperienced traders, especially as emotion more easily comes into play in ways that you
don’t want when you’re risking a lot of money. It’s best to be avoided and work your way
up with smaller positions sizes and compound your winnings as you gain experience and confidence. Yes, large gains are possible with this strategy. But so are large losses, they are just as
easy to stumble into. The larger the position size, the more likely
you are to get emotional about it. Which impairs your logic, and ability to stick
to your trading game plan. If you never risk more than you are willing
to lose, you will be doing yourself a huge favor long term. Consistently compounding smaller wins into
a larger sum over time, is a better long term strategy. Because remember, bubble markets eventually
come to an end by stabilizing. These 10 to 100X gains in the cryptocurrency
market with altcoins will not always be ‘a thing’ in the future. The less fear you have to deal with, the easier
it is to think logically in regard to your trading strategy. And then you have the traders who think they
need to trade everyday. Or as frequently as possible, often forcing
trades where there are no opportunities. They are trading for the sake of trading. More trades does not necessarily make more
profit. It can increase your fees paid to the exchange
per trade. Especially if you are using a scalping strategy
where your profits are already small to begin with. Instead, you should take your time to look
for trading opportunities that have a higher probability of success and profitability. And do not overtrade, this is one area where
‘less is more’ rings true. This keeps you out of stupid trades, like
after you profited in a good trade and then you decide to jump back in too soon. Do not do that. Don’t overtrade. And then lastly, to break even or not win,
is better than losing. By entering less trades and sticking to higher
quality setups, you set yourself up to make less mistakes. And even though you are not winning more often,
you are also not losing. So your preserving your trading capital, for
more valuable trades that will be coming up next. Then of course we have the mindset of ‘Impatience’,
new and inexperienced crypto traders are impatient and can’t wait for their coin to moon. People who are destined to lose, rush into
trade entries without a game plan. Don’t be in a rush, be calculated, have a
proper entry and exit strategy. A famous quote by Warren Buffett, says that
the stock market is a device for transferring money from the impatient to the patient. And the next mindset that leads to disaster
is thinking that you are always right. A lot of new traders will just have too much
confidence in their own skills and abilities, and they’ll end up in a number of situations. Like believing that it’s going to just moon,
no matter what, anytime soon. Factors in the market change, but their mindset
does not. They also do not have a gameplan for when
things do change. Instead they just, block it all out, until
sooner or later, they are very deep in the red. They attributed it to FUD or reasons that
may or may not have played a role in the meantime. In order to make up an excuse in their mind
to help them justify why the current situation has them losing. You need to be prepared to adjust as new information,
and or price movements come into play. You don’t want to be a coin fan boy. They think that a particular coin is the best
thing ever and don’t take into account negative information and/or the technical aspects of
markets. They don’t look at the full picture. A successful trader looks at the full picture,
of any given trading situation. Next we’re going to go over the four main
fears of a Crypto Trader. The first fear is that of being wrong. This can cause you to miss out on trades,
or lose money, because you didn’t sell when you should have. Fear number two is that of losing money. But what you have to understand is that every
trader loses trades, its a part of the game. There are wins and there are losses. Next we have FOMO, Fear of Missing out. This is when a lot of newbie traders will
end up just buying into pumps or breakouts. And then next thing you know, the market corrects,
and they’re in the red. Then you have the second form of FOMO, where
they fear missing out on higher profits. So the result of this, is that the trader
will not sell when the price is going up or peaking even. And this is attributable to 100% to greed. Thinking that it’s only going to keep going
up. You can master these common fears by changing
how you think about them. The following principles are taken from the
book “Trading in the Zone” by Mark Douglas, which I recommend as one of the MUST HAVE
books in your trading education library. His principles state that; Anything can happen. And yes anything can happen, on any average
day in the market. He says ‘You don’t need to know what is going
to happen next to make money. He says there is a random distribution between
wins and losses for any given set of variables that define an ‘edge’. An ‘edge’ is nothing more than an indication
of a higher probability of one thing happening over another. And every moment in the market is unique. So the first principle, ‘Anything Can Happen’,
real or fake, also known as FUD news could come out and affect the price. A whale could pump and / or dump the market
at any given time. An exchange hack or a denial of service on
any major exchange could affect cryptocurrency prices. A 51% attack by malicious actors on a coin’s
blockchain, could certainly affect the price on a given day. And of course you have the random red days
where your altcoins or bitcoin that are bound to happen for cyclical reasons. An effective approach, is to trade the situations
as they arise, letting the market guide your logical trading decisions. And of course don’t let emotion come into
play. The next principle from Mark Douglas’ book
is that ‘You don’t need to know what’s going to happen next to make money’. When you have a proven strategy that has worked
for you time and again, and when you stick to it, you don’t need to know what is going
to happen next in the market. You just act according to the situation at
hand, according to your gameplan. When you are implementing consistently with
a higher probability approach, your probabilities of winning will also increase significantly. It’s all about setting yourself up for success! And when you have a successful approach you
an easily master your fears, by just sticking to the game plan. And next Mark Douglas says ‘There is a random
distribution between wins and losses for any given set of variables that define an edge.’ So given you have a winning trading strategy,
which would be your ‘edge’, the more losers you have the closer you are to experiencing
your next winning trade. As long as you stick to your gameplan and
let the probabilities work for you, don’t let the fear of losing stop you from taking
that next trade with your strategy, or you could watch yourself miss what could have
been your next big winner. It’s all about consistent implementation when
you have a winning strategy. Because it’s impossible for any strategy to
win every trade over time, but if your consistent with taking your opportunities as they come,
it should work out majorly in your favor over time. It’s just as easy to go on a winning streak
as it is on a losing streak. And when you are using a consistent strategy. So you just have to keep trading through your
downtimes to reach the gold. When you understand this concept, it helps
you to reduce your emotional attachment to any one trade, as you are ready to move onto
the next trade, despite your results with the last one. Now according to Mark Douglas ‘having an edge
on a trade, is when you have an indication that there is a higher probability of one
thing happening over another…’ So stick to your entry criteria, once you
have found your edge. When you stray from your gameplan, it’s really
easy for you to lose your edge and lose more trades. An example of this is when you use certain
technical indicators to help you make your trading decisions. And then all of a sudden you use a different
indicator, you were not using before to analyze and make a trading decision. Using too many indicators in your analysis
can result in mixed signals anyways. So it’s best to stick to one strategy, with
2-4 quality indicators that work for your trading style. And don’t let other factors like social media
distract you from your gameplan and eliminate your edge. And according to Mark Douglas, ‘every moment
in the market is unique’. And I definitely have seen this for myself,
with my own experience. Because you lost last time to a similar trading
setup, does not necessarily mean you will lose this time and vice versa in regard to
winning. Different traders will be trading against
you in every trading situation. So this reduces predictability. You do not know what is going to happen in
this regard. But don’t let fear stop you from taking a
valid entry according to your trading game plan’s standards. If you do not take a trade, in a series of
trading opportunities… you could be missing out your next big profitable trade. Just based on the probabilities. From these truths we have discussed, Mark
Douglas created the 7 principles of consistency in your trading, that we’re going to go over
right now. One, I objectively identify my edges. This is your trading strategy. So in your crypto education moving forward,
your going to need to find an effective trading strategy, using certain indicators, whatever
works for you, this is going to be your ‘edge’. Principle number two, is I pre-define the
risk of every trade. What this means, is don’t just focus on your
entries, know your exits ahead of time, have a game plan, and stick to it. Principle number three, ‘I completely accept
the risk or I am willing to let go of the trade.’ So if your not really feeling great about
a trade, stay out of it. Wait until the next one comes along. And this goes back to the piece of advice
I gave you earlier, don’t over trade. Principle number four, I act on my edges without
reservation or hesitation. So what this means is don’t let fear come
into play. It’s an emotion that will help you to lose
more money. Principle number 5, ‘I pay myself as the market
makes more money available to me. So this means take profits whenever possible. Whenever the market puts money in front of
you. So this means to make a habit of taking profits
whenever possible, whenever the market provides the next opportunity. Principle number six, I continually monitor
my susceptibility for making errors. To do this you could review your trades in
a journal or trade tracking app. Like Cointracking. Principle number seven. I understand the absolute necessity of these
principles of consistent success and therefore I never violate them. What this means is if you take a trade out
of emotion rather than your proven game plan, that is ultimately bad for you, when it comes
to the game of probabilities and having them in your favor, according to your ‘edge’. So it’s important to not form bad habits and
stick to your game plan religiously. So you don’t put yourself on unnecessary losing
streaks. If you do this, you will surely come out on
top in the long run! And all the information by Mark Douglas that
have just gone over, is actually from his incredibly powerful written work on trading
education, called “Trading In The Zone”. I would consider this a must read for all
traders, whether crypto or other financial markets, it’s not going to matter, just get
it and read it as soon as possible. And if you are more so the audio book type,
you can also find it very affordably on Amazon’s Audible. And you can literally listen to the whole
thing in about 8 hours, whether driving in your car, or going about your day, you should
be able to absorb this valuable information quickly and easily. And it’s well worth your time. You will find traders talking about this book
all over the internet, because it’s helped so many people to shift their mind from their
former approach, and turn around and start winning. And personally, all of the serious top traders
that I know, follow and respect have read this book and highly recommend it. So there is obviously a good reason for that. If you take your success seriously, you need
to absorb the information contained in this book. And I know that you’ll end up thanking me
later. Just covering some of the last details and
areas for your approach. Here’s a little life mindset for crypto traders,
that I really believe in and practice myself. It’s all about education. Be willing to keep your mind open to new information
and skills that could be learned on a daily basis. This is a big part of developing your overall
edge as a trader. Surround yourself with like minded individuals
who are practicing and honing the same skill sets in trading. This will accelerate your learning process,
and help make you more successful faster. Join a mastermind group that focuses on trading
the crypto market to amplify your edge as your daily markets information flow increases
in quality, quantity and timing thanks to the teamwork of the group. Don’t listen to people who talk about crypto
and know nothing about it. There are a lot of people that talk without
any type of expertise, like they know everything. And they will project a lot of fear and uncertainty
unnecessarily and you can’t take them seriously. They need help too, they just don’t know it
yet in most cases. So don’t let what people spout off affect
you. Stay positive and watch your negative self
talk, as it can lead to self fulfilling prophecies that you probably don’t want. If one of your positions is down, go do your
own research to find out whats going on with the project. If you still believe in the fundamentals,
it may just require some patience and you’ll be back in profit eventually, as we move through
the market cycles, as long as your pick was fundamentally strong. And remember just like Mark Douglas said,
anything can happen 24-7 any day, so be tapped into your resources and be ready for it. It could mean the difference between hitting
on or missing your next big trade. So in closing, the key to your success with
the crypto markets is education, which will provide you with a proven consistent trading
strategy or ‘system’ that you can leverage for profit. Once you have the education you need to avoid
all the newbie mistakes we have discussed in this mindset and market psychology training,
you can challenge yourself to master your emotions and stick to your trading system
through thick and thin. Mindset and market psychology are not exactly
rocket science. If you can learn and understand the market
from this perspective, you’ll be well on your way to becoming fully educated as a trader
and enjoying the success you have always dreamed of. Caleb Wright here from Bitcoin Lifestyles
Club, and I hope you found massive value in your FREE Crypto Trader’s Mindset & Psychology
training. If you are ready to dive head first and immerse
yourself in the world of cryptocurrency trading, investing and mining. and Set yourself up
for the best results possible, its all about taking your education as a trader seriously,
you owe it to yourself to take a good look at my cryptocurrency trading, investing and
mining mastery course. And my 24-7 running mastermind chat group
on Slack. Because it’s also equally important that you
surround yourself with other people who are having success in the area that you are working
at having your own breakthrough, like the cryptocurrency markets. The next thing you know you could be writing
your very own crypto markets success story, with us at Bitcoin Lifestyles Club. You can get more info about the education
and mastermind at my website, www.BitcoinLifestyles.club. And you can also click the link right below
this video for more information and get started. And of course, since you have access to this
training, that means you also should have the ability to either send me an email or
ping me with a message on Facebook. Feel free to contact me if you have any questions,
I am here to help. Caleb Wright, signing off, and I will surely
catch you soon, be prosperous until then.

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