Popular within the crypto community, trader and analyst Peter Brandt celebrates fifty years of work anniversary. In honor of this milestone, he shared with his followers life lessons he had to learn.
The list comprises 17 points. It can be seen as recommendations shared by an experienced trader with his colleagues.
Peter Brandt is an active participant in the #crypto community, who has consistently been able to accurately predict market movements. For instance, he forecasted the crypto winter of 2018.
Among all cryptocurrencies, the trader highlights Bitcoin. In his view, #BTC is the best store of value in the market.
He considers other coins as scams.
Here are the life lessons that might be useful for traders, extracted by Peter Brandt throughout his career:
A trading plan is incomplete if it does not account for unforeseen circumstances for all known possibilities.
A trading plan is incomplete if it does not involve promptly cutting losing trades and allowing profitable trades to grow in number.
I may think I know where the market is going in the near future. In reality, nobody knows.
Trades I'm most eager to believe in are often the ones I least want to participate in.
A trading plan may be considered useless until you repeatedly commit to acting according to it. If you can't do so, perhaps something is wrong with you, not with the plan.
Depending on circumstances, I may become a captive of the activity of the left (responsible for logic and analytical abilities) or right (responsible for imagination and creativity) hemisphere of the brain. Often, the battle of hemispheres occurs when trading brings the most disappointments and when I can delve deeper into myself.
Self-awareness through trading is extremely important because successful trading allows preventing self-sabotage.
You can encounter both old and bold traders in the market, but old and yet bold traders are extremely few.
Until you learn to lose gracefully, forget about the constant pursuit of winning.
It's better not to pay attention to the account balance during a truly profitable period.
The profit from open trades does not belong to me, so, except for filing tax returns, there's no need to track this data.
Return on investment and Sharpe ratio are the two most meaningless metrics.
Returns of 10X, 20X, and so on, while working with crypto, are a unique experience. Novice traders shouldn't constantly expect to replicate these results.
Trading rules, including indicator peculiarities, cannot be optimized.
It's best to approach trading as a marathon, not a sprint.
For a trader with less than five years of experience, the worst drawdown is the one that hasn't happened yet.
In reality, there are far more life lessons than listed.
Members of the crypto community thanked Brandt for deciding to share his experience with them. And you?