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Peter Brandt is known as a legendary trader with 43 years of experience in trading the financial markets using classical models. For Bitcoin in particular and the cryptocurrency market in general, he also pays special attention, he often gives crypto technical comments on his personal twitter page. Here are some extremely valuable experiences he shared when participating in the crypto market.
Following the 30 lessons learned from part 1, we will send you the remaining 32 lessons learned by legendary trader Peter Brandt in part 2:
thirty first. The daily trading volume of crypto accounts for only 3/10 of 1% of the daily fiat trading volume. Crypto’s share of the world’s total volume of currencies will increase, but true crypto geeks are daydreaming of a time when crypto will replace fiat.
32. If you don’t understand what the market behavior is, you should keep your capital and not trade.
33. Experience teaches me that smaller positions are generally more profitable in the long run than large positions that are very prone to stop loss in a stop loss hunt.
34. One of the big lessons all inexperienced traders need to know: Profitable trading is different with a high win rate. Correctly predicting a trade that is being overvalued.
35. Here are the realities of trading based on classic price patterns:
- A pattern is always a “potential” model until it’s complete
- Finished models have a very high failure rate
“That’s why risk management and order management are more important than identifying entry opportunities.”
36. I’m only interested in probability, not prediction.
37. Losing money trading is much easier than making money trading.
38. Trading rule: Your worst drawdown rate is the one that never appeared. This rule will help you use leverage properly. It means that you can completely lose more than the maximum amount of capital ever lost, do not use too high leverage.
39. It is extremely important for a trader to understand himself. If you don’t understand yourself, don’t trade.
40. Fear of loss has led a lot of novice traders to look for pathetic systems that promise 80% or more win rates.
41. The two greatest virtues of life are patience and wisdom. You can see them clearly in life, especially in financial investments.
42. A big mistake of novice traders is that their bet size is too large, often they risk 5%, 10% or more on each trade.
43. Technical traders make money by “living in the moment” and understanding what the charts are saying. Drawing meaningless lines that you expect the price to follow on the chart won’t do any good.
44. Two ingredients for successful trading:
- Be patient
- Please regret short
45. Worry or concern that an order might be lost is a major obstacle to profitability.
forty six. There is an idiom from the early days of trading about Bear markets:When the police entered the brothel, everyone was arrested, including the piano player.“If you don’t understand what this means, you haven’t been trading long enough.
47. Have you ever in your trading career that you completely forgot what it feels like to have a winning trade? If so, welcome to the world of financial speculation. It’s a feeling everyone goes through.
48. The worst thing that can happen to a swing trader or position trader (this type of trader usually surfs long waves, rarely enters and holds long positions) is stuck in a narrow range of price fluctuations, waiting. waiting for a breakout only to lose the necessary capital and anxiety while they could have entered a meaningful position when the breakout actually happened.
49. In fact, I am a rule trader. And rules cannot be fully established in just a few trades.
50. The patience and discipline to trade well with geometric price patterns, along with pre-determining risk and managing trades have provided me with an edge to face the market.
51. One characteristic that distinguishes a world-class trader is self-awareness, they know themselves well, their strengths and weaknesses.
52. I have no control over whether a trade will be profitable or not. My job is to enter orders, nothing more, nothing less.
53. Measuring a trade is not about making money or not. A “good” trade can completely lose money. A “bad” trade can be profitable.
54. Losing trades teach us more than winning trades.
55. During my years of trading, my biggest profitable trades have come from HOLDING, not continuous trading.
56. How a price pattern is formed is far more important than whether or not it completes.
57. There are many people who have their own favorite Altcoin, like a pet. It reminds me of the betting battles back in the days of old — and most of these pet coins will eventually end up in landfills and forgotten.
58. I prefer breakouts that force traders to scratch their heads and lament.”What is it?” .
59. Chart analysis is only useful when it provides a clearer view of risk management.
60. Daydreaming has never been a strong fundamental factor in a market.
sixty one. Speaking of RSI, Stochastic, and MACD, the market can stay overbought for much longer than the Bears can afford to pay off a losing short. Overbought/oversold is only good for trading sideways markets. A heavily oversold market is usually about to reverse.
62. Jesse Livermore is a mountain of wisdom, everything he says is true to this day:
“The desire to make trades regardless of current market conditions is the cause of so many Wall Street losses even for the pros who think they have to take something home every day. day, it’s like working for a salary.”
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