The Fool Who Got Rich Trading
Based on a true story. Names have been changed to protect the privacy of individuals.
Meet Larry. He's 24 years old.
Larry dropped out of collage a few years ago to work on his "tech startup" in his parent's basement.
He read that Bill Gates had dropped out of college, and thought it was a great idea. Like the famous founder of Microsoft, Larry wanted to get rich, too.
Unlike Bill Gates, however, Larry isn't particularly bright or hardworking. He also didn't have wealthy parents, or any backup plan in case his startup failed.
Taking $40,000 of "seed money" from his parents, Larry tries to build his dream business.
After 18 months of trying, however, he isn't making any progress and gives up. He now spends of his time in between part-time jobs and playing World of Warcraft.
He's waiting for the next big business idea to come along.
It's now November 2015.
Suddenly, out of nowhere, Larry learns of this new exciting thing called Bitcoin.
As a self-proclaimed "cultural rebel", Larry loved the idea of cryptocurrencies. He saw this new asset class as a way to opt out of the mainstream financial system.
Most of all, he wanted to give the middle finger to the big banks that got away with crashing the economy in 2008. And if he could get rich along the way, all the better!
Now of course, Larry didn't understand the math behind how Bitcoin worked, nor did he care. All he knew was that he hated those dirty bankers, and that the price of Bitcoin was going up by the day.
So he gathered the remainder of his business startup capital, which came to about $20,000, and put it all into Bitcoin.
X months later, Larry becomes a millionaire. His initial $10,000 had turned into $XXXXXX. It's the easiest money he's ever made.
Giddy with excitement, he refuses to sell any of his Bitcoin. He believes the price will shoot up to $200,000 per coin. HODL!!
Another X months go by, and the price of Bitcoin halves to $XXX. Larry is devastated. He's still rich of course, but he's no longer a millionaire.
Unable to stomach the pain of all that lost profit, Larry sells all his Bitcoin.
With $XXXXX in the bank, Larry is now a rich man.
He feels horrible about leaving all that money on the table, but for now, at least, he is wealthy.
Why that idiot is rich and you're not.
Regardless of how you feel about Larry, consider this...
Despite not having much of plan or doing anything productive, Larry still ended up making more money than the vast majority of retail traders.
He might have been a fool... and he might have gotten lucky... but there must have been something he did right.
How did Larry manage to make money trading, while most other traders -- who are much more intelligent and much more hardworking -- fail?
Did it all really just boil down to plain luck?
Or is there something more?
Continued: What Larry got right
The hidden secret in plain sight
The secret to this trading approach is
Behind the scenes, there are a number of sophisticated trading principles and processes that allows me to stay profitable.
HThe Deep Trades system is designed to system scans the 28 most-traded currency pairs for
analyzes a series of fundamental and technical elements (data points) to determine the top 3 - 5 trades to take each day, among the 28 most trade-able currency pairs. The exact details, of course, is proprietary.
I then personally go through each of these shortlisted trades, and pick out the best one to enter on my trading account.
Why This Works
Unlike 99% of retail traders out there who focus on their trading strategy, Deep Trades
This is the first key to why we are profitable while most retail traders aren't.
Mistake #1: 99% of traders have it backwards
The vast majority of retail traders are focused on their trading method.
They start with, say, a trend trading system, and then try to apply their system to markets that look like they're trending.
Now here's the secret...
In a strongly trending market, practically all trend trading systems will make money. The exact trend system you use won't matter, because almost ALL trend systems will end up being profitable.
If the GBP/USD is in a strong uptrend for example, just close your eyes and press buy. 8 times out of 10, you'll make money. The type of trading system you use is not nearly as important as the condition of the market you're trading.
Think about what this means.
All trading systems are only as effective as the market they're being applied to. You can have the best trend system in the world, but if you apply it to a low-volatility market, you're still likely to lose
Choose the right market, and trading becomes easy. Choose the wrong market, and trading becomes a struggle.
With Deep Trades, we look for the markets where it's EASY to win. Where even morons are winning at it. And we do this every day.
[mindmap: fundamentals + technicals > filter out decent opportunities > pick the best one
NEXT: Why just 1 trade a day >