The Wolf Principles:
How To Become A Millionaire Trading
Crypto, Forex, & Stocks
By
Cameron Fous
2
The Wolf Principles: From Sheep to Wolf
by Cameron Fous
Table of Contents
INTRODUCTION
6
CHAPTER 1: HOW TO RIG THE MARKET LIKE THE PROS
10
CHAPTER 2: WHY DO 98% OF TRADERS FAIL?
13
CHAPTER 3 - THE PROBLEMS TRADERS FACE AND HOW TO OVERCOME THEM
16
Unrealistic Expectations
17
How To Overcome “Small Account Syndrome”
19
Using Leverage - The Good and the Bad
20
Chapter 4 - Get a Funded Account First Before Anything Else
22
How It Works
24
Chapter 5 - Trading For a “Living” vs. Trading to Build Wealth
27
Chapter 6 - The Wolf Routine - Building a Habitual Life of Discipline
31
Your Personal Relationships
32
Your Relationship with Your Phone and Social Media
32
Your Relationship with Your Body
My Schedule
The Baseline for Getting and Maintaining Abs
34
35
37
CHAPTER 7 - THE POWER OF ENVIRONMENT
42
CHAPTER 8 – MENTOR + COMMUNITY: THE CLOSEST THING TO GET RICH QUICK THERE IS
44
Otto von Bismarck once said, “Only a fool learns from his own mistakes. The wise man learns from the
mistakes of others.”
45
3
How to Pick a Mentor?
1. I read their book.
2. Have they personally achieved results for themselves?
3. Are they notable on social media?
4. What are other people saying?
5. How long have they been doing this?
46
47
48
48
49
49
So, That’s How You Choose a Mentor
50
CHAPTER 9 - THE BASIC TERMS
51
Day Trader
51
Swing Trader
51
Retail Trader
51
Institutional Trader
51
Technical Analysis
51
Fundamental Analysis
52
HODL
52
WAGMI
52
FUD
52
Long or “Going Long”
52
Short or “Going Short”
52
Short Squeeze
53
Spot Account
53
Margin Account
53
Futures Account
53
Time Frames
53
CHAPTER 10: WHAT’S A TRADING SYSTEM?
57
Watch Out for Scam Systems or Get Rich Quick Passive Income Schemes.
57
What is a Real Trading System?
58
4
CHAPTER 11 - TECHNICAL ANALYSIS IS A LIE! PYSCHOANALYTICS IS THE TRUTH
60
What Technical Analysis is From My View - “Psychoanalytics”
60
How and Why Does Technical Analysis Work?
62
Support and Resistance aka Supply and Demand Explained
63
CHAPTER 12 – A DEEP DIVE INTO CLASSICAL TECHNICAL ANALYSIS FROM MY VIEWPOINT
72
Technical Analysis - Support & Resistance
72
How Strong is Support and Resistance? And When Does It Become Less Relevant?
78
Technical Analysis - Trend Lines
How To Draw Trend Line Support
How To Draw Trend Line Resistance
81
81
83
Technical Analysis - Moving Averages
Simple Moving Average (SMA)
Exponential Moving Average (EMA)
87
88
88
94
95
97
97
99
101
105
Technical Analysis - Chart Patterns
Ascending Triangle - The King of Bull Market Breakout Patterns (Bullish)
Descending Triangle - The Panic Sell Off (Bearish)
Price Targets
107
108
110
112
Falling Wedge Breakout - Fast Pass to Pro its (Bullish)
Rising Wedge Breakdown - The Last Spike that Ends the Rally (Bearish)
Head and Shoulders - The Man in the Mirror (Bearish)
Inverse Head and Shoulders - Drunk Man in the Mirror - (Bullish)
Symmetrical Triangle - The Confused Tourist (Bullish and Bearish)
113
115
117
120
122
Double Top - The Golden Arches McDonalds Special (Bearish)
Double Bottom - The W Booty (Bullish)
Triple Top - “One Last Song” (Bearish)
Triple Bottom - DJ KHALED! Another One! (Bullish)
Ascending Channel - It’s Bullish Until It Isn’t
Descending Channel - It’s Bearish Until It Isn’t
125
128
130
133
136
138
f
Technical Analysis - Trading Indicators
RSI
Bearish Divergence Signal Example
Bullish Divergence Signal Example
MACD
FEAR & GREED INDICATOR - My Alternative to RSI
Degenrshift - The Ultimate Momentum Shift Indicator
5
Continuation Patterns - The Show Must Go On
Bullish Continuation Patterns
Bullish Flag Reversal Patterns
Bear Flag Continuation Patterns
Bear Megaphone Continuation Pattern
Bear Flag Reversal Patterns
142
142
144
145
147
147
CHAPTER 13 - HOW TO VIEW EVERY TRADE FROM TOP DOWN
150
CHAPTER 14 - HOW TO MAKE LIFE CHANGING MONEY
154
CHAPTER 15 - THE WOLF PRINCIPLES
157
Why 95-98% of Traders Fail
157
Trading Income vs. Wealth
157
Long Term Success in Trading is Not Derived From Becoming an Expert at Winning Big, It’s Derived
From Becoming an Expert at Losing Small.
158
Lottery Ticket Trading - Life Changing Swing for the Fences vs. Learning to Trade
159
Being Wrong On a Trade Only Matters If You Don’t Use a Stop, Either Physically or Mentally
159
New Data? React to it, Never Ignore It
159
Market Swing and Windows of Opportunity
160
WAGMI vs. PVP
160
Copycat Traders
161
If/Then Statement Trading
161
Predicting vs. Reacting
161
HODL vs. Trading
161
Calling the Bottom
161
Avoiding Competitive Personality and Revenge Trading
161
Get Rich Slow vs. Get Rich Quick
162
Spotting Fake Gurus
162
Losing Everything is a Rite of Passage
162
6
Rules of the Game
162
Capital Preservation in Bear Markets
162
Who Creates the Big Moves That Makes Pro Traders Rich? You do.
163
No One Can Predict the Future
163
Acknowledging the Bear
163
You Have to Be Willing to Fail For an Extended Period of Time to Finally Win?
163
Big Moves Usually Mean the End, Not Just the Beginning
163
Becoming a Lone Wolf
163
Right Idea, Wrong Trade Size
164
Avoid Biased Gurus
164
If Your Account is in New Highs, It’s Time to Lock in Gains
164
Losing in Trading is Only a Problem If You Don’t Use a Stop Loss
164
Moving On From a Losing Trade
164
Everything You Read or Hear Has a Bias
164
Slow Times
165
MIC DROP…
165
Introduction
Spoiler: I’m writing a whole other book about my entire 20-year journey as a trader which is
going to blow your mind, so I’ll save most of “My story” for that book and keep this intro short
and sweet. With that said. This book is about the principles I used to make millions of dollars in
trading and what I learned from all my failures and success.
I dedicate this book to my family and my 20-year-old self, who blindly entered the world of
trading and investing, and paid the ultimate price for our ignorance. I always knew that I wanted
to be a stockbroker from a young age, after watching finance movies like Wall Street and Boiler
7
Room. At 12 years old, I remember being at my best friend’s house and their dad came back
from work in a brand-new cherry red BMW Z3. This was the new hyped-up BMW that just came
out and was debuted as the new James Bond Car in the movie Golden Eye (yes, this was back
in 1996). He was a broker at Solomon Smith Barney (now known as Morgan Stanley). When I
saw him get out of that car, dressed to the nines, I wanted to be him…. and I definitely wanted
his car!
And by 20 years old I too had a shiny BMW M3! Unfortunately, I didn’t earn it and I still had
learned nothing about how to make money and, more importantly, manage it, keep it, and grow
it. So, how did I pay for it? Inheritance from my great uncle.
He’d recently passed away and left my family with $500,000. Did me or my family have any
experience in trading or investing? Most definitely not. (I mean, I went out and bought that car.)
The only thing we all shared in common, and something we likely share with you, in common
with you as well, is that we all wanted to get rich and get rich fast.
Around the same time, my family got a “hot stock tip” from a friend of ours about some gamechanging, up-and-coming biotech company. Our family friend said, “This could be a big
opportunity to get rich if you invested now.” Famous last words. The year was 2005. I was 20
years old as a sophomore at Oregon State University, and this moment marked the beginning of
my trading career. What I didn’t know was that I was about to go on one hell of a ride learning
exactly what NOT TO DO in this game.
At the time, I was living an image like I was wealthy, but I surely wasn’t. I had a negative
balance in bank account and I’d spent everything I had on my BMW, that was actually a beat
down salvage title M3 that I got for about 50% lower than its actual value. A salvage title means
the car was totaled and then repaired, so you can get a big discount on these. So, my car, while
it looked nice from the outside, was just as secretly and internally damaged as I was personally.
I was going into debt while living off $400/month and student loans.
The problem we all face when we’re young is that we’re all broke, and we don’t know how the
hell we’re going to get rich. And when we see a life changing opportunity, we love to fantasize
about finally breaking free from the chains that hold us down. We dream of finally getting that
car, money, girl, watch, house etc. The problem is that we don’t want to put in the years of hard
work and discipline to get it. When you’re 20, like I was at the time, 25 felt 20 years away. I’d be
old and gray by then. I couldn’t think that far ahead. I could only think about now. HOW CAN I
GET RICH NOW. Now, I’m 39, and it feels like it happened in a blink of an eye. I could’ve been
so much further ahead in life right now if I could have just focused on my future instead of
focusing on the “now” when I was young and dumb.
But, back to my 20-year-old self. When I saw a get rich quick opportunity, I was eager to jump
on board and pray for the best. And that’s exactly what my family and I did when we got that
8
stock tip. I sold my BMW M3 for $10,000 so I could have some money to start trading.
Meanwhile, my family dumped the $500,000 inheritance into this get-rich-quick stock tip. We
had zero fucking clue what we were doing. But everyone around us was hyping up how big this
was going to be, how rich we were all going to be. Even our other friends, family, and my
girlfriend bought in! This is the viral mind virus of “bullshit fantasies” spreading. And it happens
all too often over and over again to people just like me and you.
Within six months? That $500,000 was gone. Everyone who we’d told about this stock tip, their
money was gone. The company released a news report saying the phase two trial of their
experimental drug didn’t work and the stock dropped 90% in one day. It never recovered. Just
like that, this life-changing inheritance was gone, just as fast as it took for the wire transfer to hit
the accounts to begin with. Instead of life changing wealth, we got life changing damage to our
mental states and thoughts about investing. Although, in the long run, it also ended up an
extremely important life lesson.
In today’s world, this is the equivalent to all these fucking loser crypto bros hyping everyone up
to buy some shitty memecoin, or even Bitcoin maxxies trying to convince everyone that “$BTC
is going to $500k this year, don’t sell!” Only for everything to come crashing down 90% and
everyone who bought at the top loses everything. Punch yourself right now if you have fallen for
this trap (lol).
Somehow, by luck, I had sold my shares of this biotech company for a small profit before the
crash. I was bored of holding it. I wanted to learn how to actively day trade and swing trade! I
wanted to feel the rush of getting in and out for profits and hunt for the next big thing! And, oh
boy, trade I did. I traded my way straight to fucking $0 in my account (lol). I didn’t have a clue
what the hell I was doing. In fact, for my first trade ever in 2005, I opened up an account at
E*TRADE and found the cheapest stock on the home page. I had no idea what it did or what the
chart looked like. In my head, this was the cheapest stock, which meant that it had the most
potential to make me rich quickly if it went up. Surely, this plan did not work and I sold it for a
loss shortly after.
Little did I know, it wouldn’t be another four years and three blown up trading accounts before I
ever made any money trading on my fourth account. My family? They gave up and never came
back to trading or investing after that loss. If someone would have told me it was going to take
four fucking years of pain, misery, stress, and losses before I would ever make any money, I
surely would have quit right then and given up. But I didn’t give up. I wish I could say it was due
to optimism and commitment to my trading, but really it was just out of pure ignorance and being
stubborn enough to keep going, no matter how many times I failed or how much money I lost.
The purpose of this book is to give you a clear path and foundation to how I have now made
millions of dollars trading crypto, stocks, and forex consistently, which allowed me to live a
world-wide life I never imagined was possible. I hope that I can be the mentor for you that I
never had. I hope that by reading this book, I can help mitigate all the pain and misery that I
suffered, so that you don’t have to. I hope that you can start making money within your first year,
9
not your fourth year like me. And, most importantly, I want to teach you The Wolf Principles that
can get you started on the right path and truly create life-changing wealth for you and your loved
ones.
By reading this book, I can’t promise that you will get rich. But I can promise that you will have
the framework and knowledge that would have made me a millionaire MUCH faster if I had it
when I first started back in 2005. I personally can’t make you rich, but I can surely show you
how to get rich. I will give you the tools you need and show you which door to open. Ready?
Let’s step inside.
10
Chapter 1: How to Rig the Market Like The
Pros
We are about to embark on an epic journey to gain a deep understanding of how the markets
work. I’m about to reveal to you exactly how to manipulate the markets in your favor so that you
can pull consistent gains and steal everyone's money. Yes, you heard that correctly. You are
going to literally steal everyone’s hard earned cash. They will lose everything, go broke, and
claim the markets are a scam and that no one makes money. Sounds a bit harsh, eh? It is… But
that is the nature of this game. In order for one person to win, a lot of other people have to lose.
The popular crypto term “WAGMI” (We’re all going to make it), is about the farthest thing
possible from reality when it comes to trading. If we are going to call anything a scam, it might
as well be all these people who are preaching WAGMI. Because they’re just literally
psychopaths feeding you false dreams and lies. Why are they psychopaths? Because they
actually believe what they’re telling you.
Have you ever heard people talking about “the markets are manipulated,” “rigged,” or “you can’t
win against the banks, institutions, and hedge funds because they control the markets?” Well,
then you would be correct because these things are actually true because they do have enough
money to influence the market’s direction. But it’s not in the way you think. It’s not like they have
a magic wand and make money. What they do have though is a deep understanding of the
nature of price action, supply and demand, and human psychology. They make the right
decisions when everyone else is making the wrong decision. They understand what I call ’‘The
Wolf Principles.” Think of this book as your beginner’s guide to start comprehending this way of
thinking and understanding of the markets.
You must understand that “they” institutions, banks, and hedge funds are not making money in
the market simply by influencing the price of an asset. They are just patient and disciplined
enough to wait for the right time and the right opportunities to enter and exit the market when
you’re too scared to buy, or when you’re too greedy to sell. They understand how to anticipate
upcoming moves, calculate the highest probability scenarios, and look for contrarian views of
potential outcomes before anyone else sees it coming. By doing this, they’re taking advantage
of the masses by “manipulating” or “rigging” everyone's stupidity, fear, greed, and FOMO in their
favor. The “rigging” or “market manipulation” is mostly just preying on uneducated traders' fear,
greed, and emotions.
This, in turn, results in them being on the right side of a trade and stealing everyone's money
who’s on the wrong side of the trade. And this is how the big boys “rig” the market. They simply
just outsmart you, because you, and everyone else, are unfortunately, as of right now, really
fucking stupid, greedy, and emotional when it comes to trading. The smart get richer, and the
dumb stay poor and give their money to the rich. But fear not, by the end of this book you will
11
not be stupid. Your view of how to interpret the market will shift 180 degrees and be completely
opposite of what you’re thinking now.
You will become a wolf. One of “them” who rig the market and steal everyone’s money, leaving
the opposition broke and in despair. If you feel “bad” about doing that, please close this book
and find a different career path, because I assure you, you’ve already lost, and will never make
it in this game.
This approach to understanding market movements and trading psychology, aka the wolf
principles, can be done by anyone. While banks, hedge funds, and institutions do it at a much
larger scale, regular people, just like you and me, can use these same approaches in the
markets to manipulate and steal money from the masses. In order for you to learn this approach
to the markets, you must erase everything you think you know about the markets, trading, and
investing. I'm sure if you’re reading this, you’ve either lost all your money already at least once,
already started and are losing money, or are just getting started and you have no idea what's
going on but you probably saw some stupid tweet or TikTok about some piece of shit memecoin
and you want to get rich quick! Ugghhh… Please ignore all memecoins... get that shit out of
your head now before we even continue. Memecoings are sheep fantasies…
In the markets there are sheep… and there are wolves. About 98% of traders who participate in
the markets lose. These are the sheep. Only about 2% are wolves who consistently pull money
out of the markets every day. So, as you can see, a lot of people need to lose in order for those
2% to win. Every day new traders (sheep) are opening accounts and donating “new” money to
the markets. They open live trades with absolutely zero clue what they are doing and start
competing against the big boys, the wolves. They end up on the wrong side of the trade and,
literally, just donate their money to the wolves. It’s like stealing candy from a baby for the
wolves, while the sheep's small-minded brains are just following the herd, trying to chase the
next big thing they see in the headlines or what people are tweeting about.
If a crypto coin, or stock, is already in the headlines or trending on Twitter (now X) for the
massive gains it just made, you’re already too late. The wolves are now selling and taking
profits because they got in first, or they’re shorting because they know this is coming to an end.
All the while the sheep are buying the top thinking that this is their big chance to finally get rich.
They tell all their friends to buy. Even Grandma is asking if she should buy in too! Everyone is
hyping each other up about how high this thing is going and not to sell, EVER, only to soon be
down 80% on their trade wondering what the fuck just happened and why did all their friends tell
them this was going to 100x from here?! Meanwhile, the wolves locked in profits near the top
and then got short to make money on the crash. So, while you’re down 80% on your trade, the
wolves also made money on the way down. This example has nothing to do with markets being
rigged. It’s just simply how the markets work, which is mostly pushed up and down by emotions
like fear and greed by over-emotional market participants. To be on the right side of the trade,
it’s simply a shift of your mindset and a deep understanding of how price action, supply and
demand, and human psychology work.
12
In order for you to become a wolf, you must go through a deep transformation of mind, body,
and soul. You must become someone different than who you are today. Your routine must
change. Your habits must change. The people you get advice from and talk to must change.
Your friends might even have to change. The way you view the world must change. As of right
now, you are not a wolf. You are a sheep. Everything you have been doing in life has been with
a sheep mindset, sheep friends, and a sheep approach to life. And this is okay, we are all sheep
in the beginning, as too was I nearly 20 years ago when I placed my first trade in 2005. I too had
to change everything about my life and go through years of “sheep behavior-induced failure” to
transform into the wolf I am today.
By the end of this book, I promise you will have a 100% clear path to make this transformation.
But it’s important to know that this will not happen overnight. What I will teach you in this book
will give you the beginning foundation and framework to make the transformation from sheep to
wolf. But after reading this book, you will only have knowledge. And knowledge does not equal
experience or success. You’ll basically be a sheep in a wolf’s clothing. You can only truly
become a wolf once you’ve gone out in the real world and spent years mastering the framework
I teach you by trial and error and proving to yourself with “actual results” that you have become
a wolf. Most people approach trading like sheep. They try to get rich quick. Ironically, this is the
fastest way to go broke. Wolves, on the other hand, take the alternative. They take the get rich
slow approach, which allows them to not only make money, but also, more importantly, keep the
money they make and compound its growth.
13
Chapter 2: Why Do 98% of Traders Fail?
“Shiny object syndrome” affects 98% of Traders who join the markets. They see some clickbait
headline like… “If you would have invested just $100 in $XYZ X years or days ago you would be
a millionaire today!” This is basically the equivalent of winning the lottery. It’s just not realistic.
So, don’t read some bullshit headline like this and think you will EVER do something like that.
Because you fucking won’t… Period. I’ve been in this game for 20 years, and I don’t know a
single person who actually has a real story like that. NOT ONE.
The other 2% of traders who win? These are the wolves who enter the market and seek
guidance in order to learn the way of the wolf first before even considering to make a trade. By
reading this book, I’m happy to say that you are now one step closer to becoming the 2% of wolf
traders in the markets.
Trading is nothing more than a wealth transfer. The poor stay poor. The rich get richer. This isn’t
because the markets are rigged. It’s simply because one side is “in the know” and the other side
is “not in the know.” This is true for life across the board and why most people don’t find success
in life, business, trading, etc. Hanging out with rich people makes you rich because you’ll learn
the tactics they used to get rich. The same goes for trading. Hang out with wolves and you will
learn how to become a wolf.
Ask yourself now: Who are you hanging out with? Are you in a bunch of “crypto bro” groups
talking up your favorite shit coins and how high they’re gonna go? Have any of them made
money and actually kept it? Are you looking up to a bunch of guru forex traders who never post
a full year of actual trading results? No? They aren’t? Yeah, that’s because they don’t make shit
trading and never have. Guess what? That Lambo didn’t come from trading. They know how to
make money in the “forex industry”, not in forex trading. I know all the guys in the forex space.
99.9% don’t make shit trading. So, beware of who you are looking up to for “trading education”
and mentorship.
But I digress…
A big reason for the 98% failure rate is simply just how one actually “gets started” in trading.
Most of the 98% of failures in trading are a result of starting to trade with a combination of zero
knowledge and zero experience. (As seen in the example below shortly.)
Both wolves and sheep participate in the markets, open up trading accounts, and place open
trades on the live market. When they do that their money is now in what I call the “Money Pool.”
Once a trade is opened, it is now up in the air for grabs for who will receive a portion of this
money, aka the difference between buy and sell price, when the trade is closed. Every time you
buy crypto or stock, someone on the other side is selling that asset to you either for a profit or a
14
loss. And every time you sell, you are either selling it for a profit, or loss, to someone who is now
buying.
The reality is that, most often, it’s sheep selling to sheep, and both are making the wrong
decisions. You (sheep) could be buying from another sheep that is now selling for a loss. You
think you’re making the right decision here to buy, but you can also eventually sell this for a loss
later to possibly a wolf who is now buying, who will eventually sell it to a sheep for a profit. Then
that sheep will then sell it for a loss later again to a new sheep who is probably going to lose
later as well.
The losses that occurred here all end up in the money pool to be taken out by the wolves. The
sheep just continue donating their money to the pool while the wolves slowly pull money out
over time. No money ever disappears. Money is just transferred between traders at different
prices. The only money that actually “exits” or disappears from the money pool is commissions
and fees by the brokers, which can also stack up heavily against an already losing trader and
accelerate their inevitable failure.
Sheep exit the market and give up calling it a scam, or rigged, as they tried to get rich quick by
taking high risk bets. All the while, wolves focus on survival, defense, and contrarian viewpoints,
while they manipulate the sheep’s emotions and psychology to profit slowly over time. The
wolves are conservative, thus allowing them to continue playing the game. And this is all that
matters at the end of the day. The key to becoming a successful trader long term is not winning.
It’s surviving so that you can continue to play the game, so that you can continue learning, and
eventually “earning.”
15
Now, unfortunately, you can’t be taught experience. So, even once you gain the knowledge and
principles of the wolf, there is still a high probability that you’ll actually fail and end up donating
money to the wolves, losing all your money like a sheep.
Sound unfair or discouraging?
Sure, it is. But guess what? Life is not fair. And just because you want something doesn’t mean
you’ll get it. You also have to factor in that 1000s, well, millions of other people just like you also
want the same thing. It’s up to you to outperform them, outsmart them, and, at the end of the
day, steal their cash.
Most of you might be thinking, “Man, I can’t wait to get to Cam’s ‘secret trading strategies’ that
will turn me into a winning trader. Once I have his trading indicators and secret patterns I will be
able to win against all these other traders!” While, yes, this could be possible. But it’s not a
trading system, indicator, or pattern that makes a winning trader. Yes, I have a winning trading
system that I can teach you, that can handle any market environment, and still come out
winning and surviving, and has personally made me millions of dollars. But it’s not actually the
system that makes you money. It’s your uncanny ability to actually follow it and not break its
rules. And this is where most traders fail.
Let me be clear with you. My system has made me MILLIONS. But you know what else I have
done? Lost MILLIONS. And many times I’ve lost way more than I should have by sometimes
breaking trading rules within my system, betting just sligggghtly bigger on this trade or just
moving my stop a little bit, or forgetting to even place a stop at all and going to sleep because
I'm too tired since I live in Asia and most big movements happen on the American Time zone. A
profitable year trading for me isn't just me making $1.7m in 2021. The reality is more like I made
$3m, but also lost $1.2m that year, coming out on top with $1.7m at the end. While I have 20
years of experience, I still make mistakes every year that cost me hundreds of thousands, if not
millions. I never put myself in a career-ending situation, but, every now and again, I bend my
rules slightly, which can sometimes result in bigger wins but also bigger losses. Now, this isn’t
something I should be doing at all. But I’m human. And while I have 20 years of experience
under my belt, I'm not perfect and I still fuck up quite a lot.
16
Chapter 3 - The Problems Traders Face
and How to Overcome Them
You must understand that trading is a game. It’s just like a sport. In sports and games there are
rules that you must follow in order to not only play and survive, but also, more importantly, to
win. A breach of those rules will result in your failure and disqualification from the game. A
trading system is simply a set of rules created for you to follow so you can participate, survive,
and, eventually, win. Any breach of those rules can result in your catastrophic failure. And I
mean even just one…tiny…baby fucking slip of these rules can turn one larger-than-usual loss
into an emotional nightmare that snowballs into a string of losses that will make you so down on
your account you think your only hope is to just bet it all on one lottery ticket trade, only for that
to fail also, and, before you know it, your account is zero and you are now part of the 98% of
sheep who just donated all their money to the wolves.
The majority of sheep who enter the markets and meet their inevitable demise are mostly a
result of either of two things:
1. Not even having a system of rules to follow at all and just joining circle-jerk telegram
groups and buying shitcoins/stocks and swinging for that life-changing win, which never
happen, and then losing everything. These sheep try to get rich quick, which will NEVER
actually happen.
2. Going through proper training like reading this book and even taking my more advanced
training courses as well. Now, they have the knowledge of a wolf but still have no
experience. Once trades are live, reality sets in. They lack discipline. Emotions are
running wild, stress is peaking, and in the heat of the moment of live trading, they FOMO
in and chase a trade that's already made its move. They don’t stick to their stop losses,
don’t lock in profits when they have them, and they take position sizes that are way too
big for their account. Simply put, they have a winning trading system based on a strict
set of rules, but they just simply can’t follow those rules. This inevitably results in their
failure.
I hope that this second situation is where you fall.
Now, I want to be 100% honest with you. It’s highly probable that you could blow up your first,
second, and even third trading account. (That’s what I did from 2005-2009.) As humans, we love
to bend the rules and see how far we can push things before they break. Because of that t’s
going to be extremely difficult for you not to test the boundaries of any trading system you use. I
can tell you all day long “DON’T DO THAT, IT WILL CAUSE YOU PAIN.” But, at this point, if you
haven’t personally felt that pain, you really don’t understand what I’m talking about.
17
It’s like the first time you see fire, a candle, or a lighter. Someone probably told you “Don’t touch
that, it’s hot and will burn you.” But we haven’t felt it for ourselves and we’re curious. “Really?
It’s hot? What does ‘hot’ feel like? Hmmmm, I MUST TOUCH THIS FIRE AND SEE!” How many
of you have put your hand close to a candle/lighter/fire flame so you can test for yourself?
Where you get close to the point of feeling that pain and you rapidly pull your hand or finger
back because it started to hurt?
You’ll probably go through this same exact experience in trading. So, it’s actually important to
feel this pain as early as possible in your trading career and get it out of the way. It’s better to
get these types of mistakes out of the way with a small account before you build up a big
account and then lose it all later. The faster you fail the sooner you will learn how to succeed.
So, let’s breakdown all the major problems new traders face in the beginning and how to
overcome them.
Unrealistic Expectations
This is one of the biggest faults traders face when they get started. They see someone like me
post a $50,000 profit trade and they want the same thing. But, when they do this, they fail to
acknowledge that I’ve been trading almost every day for 20 years. I’m fuckin TOP G and I didn’t
get here overnight. So, obviously, you won’t either. But the issue is that most new traders will
expect, or try, to get results like this overnight, which eventually turns their strategy into a “get
rich quick” scheme where they try to find the next memecoin and hit a 100x gain on 100x
leverage. Simply put, this is just fucking stupid and doesn’t work. If they do this anyways, they’ll
soon find out themselves and feel that pain. But this is the mentality of most new entry-level
sheep traders. Listen, I get it. I was right there with you in 2005 trying to do that same damn
thing on the OTC market, trying to hit it big on pump-and-dump penny stocks. But, after three
years of trying, I realized that this simply wasn’t a long term a winning strategy, no matter how
many rules I set or followed. Get rich quick schemes only work for the ones who created the
coin or pump that pushed it up so they could sell it to losers like you who were trying to get rich
quick. In other words, get rich quick only exists if you are the one scamming people, launching
shit coins or doing penny stock promotions, of which is illegal and could eventually land you in
jail. Now, I don’t know about you, but I’d prefer to be able to sleep at night knowing that jail isn’t
a possibility of if I get “caught” tomorrow.
The moral of this story? If you see any headlines about “If you would have bought $SHITCOIN
with just $100 30 days ago you would be a millionaire Today!” RUN….. Ignore... DO NOT
CHASE this fantasy. It DOES NOT EXIST.
“But if I’d have bought Bitcoin with $100 ten years ago I’d be a millionaire today!”
Who fucking cares!
18
That was ten years ago when NO ONE was talking about or gave a shit about Bitcoin. That
opportunity is long gone. It’s not happening again. And the probability of you repeating this is
EXTREMELY low. Ask yourself if you know anyone who’s actually living one of those stories. I
don’t. And I’ve been in this industry for nearly 20 years. Everyone who made it successfully long
term and is still in this game today got here, and stayed here, the only way you can: by making
superbly risk calculated smart decisions consistently over the long run. They didn’t make it on
one swing for the fence home run life-changing trade or investment.
Listen, these headlines are designed to spark an emotional trigger inside of you to get you to
click and read for engagement, nothing more. It’s not a call to action for you to go and try to find
this situation again and make it big for yourself. Or it could be written by people/sources who
are already in an investment and are trying to use the masses to drive up price action so they
can sell to idiots who are now FOMO buying the top. This is all a mind game for headlines and
attention. DO NOT BUY INTO IT. It's not realistic and it's not going to happen to you. Just like
winning the lottery, you can try, but guess what, that shit isn’t happening.
And guess what happens to people who do win the lottery? Essentially, 70% of them go
bankrupt within a few years. Why? Because the way in which they earned this money required
no money-making skills. And this is the same for people who try to hit lottery ticket trades like
memecoins. Sure, you might get lucky on one. But what happens next? Most likely, you never
sold because all your friends jerked each other off in your insanely irrational Telegram groups
saying … “Bro, it's going to 100x your stupid for selling here and taking profits!” And even if you
did take profits, you will take that same approach on the next trade, and the next trade, and the
next trade until all your money is eventually gone trading coins that are literally designed to USE
YOU to pump price action so the founders can dump on you. So, please… Dabble if you want,
and touch the fire just so you can learn this lesson, but if you think this is going to be your
approach to trading, you’ve already lost.
If you do take this approach, the positive side is that you’ll at least learn a valuable lesson about
what NOT to do and how fast you can lose everything. You have no idea how many people I
know personally, not traders, just friends or people around Bali who know me because of social
media, and approach me and talk about all the bullshit they are trading like “cumrocket or
Elonsperm.” I try to tell them how stupid it is and that it’s not going to work out. But they are lost
in delusion as “crypto enthusiasts.” And guess what? They’re all still broke. What they were
doing is simply just not the way.
Again, every trader who has big boy daddy accounts in the millions of dollars and consistently
makes money trading, got there by “getting rich slowly.” It took a lot of time and EXTREME hard
work and discipline.
So, grow the fuck up. Let’s get to work and think realistically about our future. Not, how we’re
going to get rich “this year.” This year, you aren’t doing shit but learn how to survive so that in
19
the future you can be rich like me, having gotten rich slowly like the rest of the rich people out
there.
How To Overcome “Small Account Syndrome”
The other problem in this category of expectations is that most traders start with very small
accounts. I recently ran a poll and the results were that 75% of traders had accounts under
$25,000, with the majority of them under $10,000. This creates a big problem in the sense of the
“you need money to make money” idea. And it's also true. You do need money to make money
trading.
Even if you earned a 100% return on, let’s say a $10k account in a year. Now, while this would
be an absolutely phenomenal performance, you still only earned $10,000 in a year. This is
pennies. It’s only $27/day. Now, obviously, if you start compounding this growth this account
could grow fast in years to come. But, is a 100% return every year realistic? Probably not.
The problem is when people do start out with smaller accounts, such as $10,000 or less, they
also think, “Shit, even if I double this that's not like a HUGE amount of money. A 100% gain in a
year is too slow! I need to double this account in the next month or two! What's the latest
memecoin in the headlines to go all in?! I need to find that secret telegram/discord and find the
next big 100x play early!”
This is a sad and unfruitful approach to trading. And it's a shame that so many people throw
away all their money doing this. But, I get it. I was there too, many times, back in 2005-2008
throwing away cash on false dreams. The most important thing for me to make clear here is that
success in this game is going to take a lot of time and patience. It’s hard for us to think longterm. But the older you get, you realize just how fast time flies. And every “next year” that
becomes comes “today,” you realize shit…. ”that time is here, I should’ve planned better.” I’m
about to turn 39 in a few months and I remember my 30th birthday like it was just a few years
ago… but it was fuckin nine years ago! So, as bad as you want, do not get rich this year. It’s not
going to happen. But, if you utilize everything I teach you, you will get rich, slowly over time. And
that age, which is five years ahead of you now, that seems like 100 years away, will soon be
“today.” I promise that you will be so happy and grateful your “getting rich” plan was for five
years ahead, and not for five months.
For example, let’s say you earned 100% per year on $10k. Your balance at the end of the year
would be:
Year 1 - $20k
Year 2 - $40k
Year 3 - $80k
Year 4 - $160k
Year 5 - $320k
20
So, you can see compounding can be a very powerful tool even if you start with a small
account. Now, 100% ROI per year might be unrealistic without taking some unrealistic gambles,
especially for a noobie sheep like you. But it certainly is possible to achieve this and more.
For example. I made and lost money from 2005 all the way to 2009 trading. I went through
every mistake in the book, learned every strategy and lesson I could, and had over three years
of real live trading experience, but I kept failing.
But, when you’re learning at the right place, at the right time, and you have a game plan to
approach the markets, you can make way more than 100% in a year. Now, I'm reluctant to tell
you this because it could give you false hope and expectations. But it’s also real and it has to do
with market cycles.
At the beginning of 2009, we had just recovered from the 2008 financial crisis. It was the biggest
meltdown of our lifetime. At this point, everything was a penny stock. Everything from some
piece of shit company to Bank of America were trading under $5. The stars were aligned for a
massive economic recovery. There were an abundance of a pattern, which I call Revival
patterns in the stock market.
After losing everything for a third time, I was on my fourth trading account, starting with $5,000.
From March until the end of the year, I had turned that $5,000 well into six figures. December
2009, alone, was a $50,000-profit month. I was home visiting my family in Oregon for Xmas in
Oregon and literally every day was a $5000-profit day. It was nuts. I ended up buying a 7 Series
BMW while visiting my mom and had it shipped back to San Diego to celebrate such an
amazing month.
Using Leverage - The Good and the Bad
Yes, I did start with just $5,000, but I didn’t make these gains by just using this $5k. I did in fact
use leverage through a prop firm that allowed 5x leverage on my cash. This meant that I
actually had $25,000 to trade with. The market conditions were perfect for an epic bull run. And
there were patterns galore that I was familiar with that all blew up. With that 5x leverage and
$25k, I split that up so that I would only bet about 10-15% of that $25k into any one stock. We
went through a couple of cycles and I killed it on the first round of trades. Now, that $5k was
$10k. And at 5x leverage I now had $50k to trade with. This snowballed to the point where that
$5k continued to pump into the $150k-ish range by end of December, and I had the CEO of the
prop firm offering me a job to manage a hedge fund account for them they were so impressed.
So you might be wondering: Should I use leverage?”
That’s a great question. Mind you, I only had three years of trading experience. The stars were
aligned with the market conditions and I nailed it. But, the thing is, this was an unrealistic goal to
repeat. This was a crazy market cycle that only happens every 3-10 years, maybe? So, to think
I was going to repeat that again the next year was highly unrealistic. I touch on market cycles in
some of my other more advanced training programs but they are extremely important to know.
21
But to the point of leverage and expectations. Too many times I’ve seen people posting
screenshots of using 50-100x leverage on some shit coin. Inevitably, they’ll blow that account up
shortly thereafter. Trading like this is stupid.. It’s insane risk and it’s “make or break” trading.
Meaning if you win, then you win big. But if you lose? You’re fuckin out… And that my friends is
not good risk management.
22
Chapter 4 - Get a Funded Account First Before Anything
Else
As of today, I'm a partner at what is called hydrafunding.io . Essentially, it's a funding platform
for traders to get access to pro-level trading capital. About 75% of traders have accounts under
$25k, with most under $10k. This small amount of starting capital makes it extremely difficult to
make any meaningful income.
I started with $10,000 in 2005, lost all that, started again with $5,000, lost all that, started again
with another $5,000, and lost all that. It wasn’t until three years in on my fourth trading account
where, putting all my tools and experience to work, with a small amount of leverage, I crushed it
after the 2008 financial crisis. The prop firm I worked with allowed me leverage, but I was only
allowed to trade stocks. This type of broker was a very “limited version” of what we can offer you
at Hydra.
Want to trade a $1,000,000 account? That’s possible with hydrafunding.io . Imagine the profits
you could make on a $1,000,000 account versus a $10,000 account. A 5% gain on $10,000 is
only $500, but a 5% gain on $1,000,000 is $50,000. Big difference.
I’m sure you’re wondering how the hell could you get access to $1,000,000 in capital to trade, or
how that would ever make any sense. I’ll explain. With hydrafunding.io you can trade stocks,
crypto, forex, indices like US30 & SPX500, and commodities like gold and oil. This opens up the
door to a lot more opportunities to trade different asset classes. Sometimes stocks are hot so
you can trade stocks. Then sometimes stocks slow down and crypto is hot, so you can migrate
to crypto. Or maybe gold is setting up for a big run, so you migrate there. Maybe currencies are
crashing, or pumping, and you can start trading your favorite forex pair. All under one trading
platform. This wasn't something that I had when I was younger and getting started but it sure
would’ve been a game changer.
Now, on the plus side, we only allow real liquid assets — the big boys like $AAPL, $BTC, $ETH,
$XRP, $US30, $XAUUSD, $USDJPY, and many more etc. In other words, there’s no access to
your fuckin shit coin cum rockets. This keeps you on a platform trading real, solid assets and not
those “enticing” pump and dumps your broke crypto bros keep telling you about. The downside
is that, yes, there are some major trading opportunities in crypto with smaller REAL coins that
you’ll only be able to access on platforms like my affiliated centralized exchange firms, for
example. Trading small cap coins on centralized exchange firms was where a big chunk of my
profits came from, turning $20k into $1.7m in the star-aligning 2020-2021 crypto bull market.
Though, I should point out that this is a little more uncertain, these days, with the SEC cracking
down big time. But this is why I have both types of accounts: accounts at Centralized Exchange
Brokers and an account with Hydrafunding. Eventually, you should have multiple accounts too.
But Let me tell you why I believe hydrafunding.io is 100% your best place to start.
I find that Hydrafunding.io creates the perfect environment for a new trader to get access to prolevel capital and trade real assets in the crypto, forex, and stock market exchanges. Let me
23
explain how the leverage works and how this approach can be much more beneficial than just
starting at a broker that has a headline on the front page that says “SHIT COIN $XYZ NOW
AVAILABLE TO TRADE!” Listen, that broker does not give a flying fuck about you. They bring
shitcoins onto the platform because a bunch of sheep will trade it, and the broker will earn
millions in commissions. At our funding platform, there will never be an asset like that, with the
exception of DOGE coin (lol). DOGEcoin is readily available to trade on our platform as the
liquidity is extremely high and tradable. But, moving on…
Let’s say you have $10,000 right now and you want to get started trading. There are two
options.
Option A. You open up an account at a centralized broker and test your luck with that $10,000.
Now, remember, there is a 98% chance you’re going to lose all this money. This is a statistical
fact. Even if you read this book, and go through my more advanced training courses,
unfortunately, chances of catastrophic failure are still high. The odds are not in your favor. I hate
to say it. Even if I teach you everything I know, you still won’t have any experience when you get
started. And you’ll likely fail on your way to learning the proper lessons you need to succeed.
This is where I think hydrafunding.io really shines. The question with option A is: Can you afford
to lose $10,000? Do you have more money on the sideline ready to start for round two if you
fail? Remember, it took me three years and four trading accounts before I ever even made
money trading, and finally learned all the lessons I needed to learn to become consistent.
So, that's option A. Sounds a bit scary, eh? It is. I’ve been there and done that many times. It’s
fuckin tough. It’s emotionally and financially draining. Now, with my help and training, I believe I
can dramatically cut down your time to eventually succeed in going with this route. But, I believe
there is a much better, safer, and more efficient way to go through this volatile learning process.
Option B. This is the option I desperately wish I had when I started in 2005. Option B is opening
up a challenge trading account with hydrafunding.io. When you do that, rather than risking your
entire $10,000 to test out the markets to even see if you have what it takes to become a trader,
you’ll only need to risk just a fraction of that.
At Hydra, you can choose between a $10,000 account to upwards of a $1,000,000 account.
Your fee is 4-10% of the account size depending on the options you choose. So, let’s say you
chose the $100,000 account. The $100,000 swing account currently costs $629 to start (subject
to change on industry standards). This means that even if you fail and blow up this account,
you’ll only lose $629. You’ll still have another 16 attempts (16 x $629 = $10,000) to become a
profitable trader before you’d actually lose that full $10,000.. Whereas with an account at a
Centralized exchange, you get one shot with just a $10,000 account and you risk it all. And
statistically, the odds of you succeeding on your first try is about 2% (lol). In other words, it’s
probably not going to happen.
24
As I’ve said before, just because you read this book and possibly join my more advanced
courses, you may have the knowledge of a wolf, which is your best starting point, but you still
don’t have the experience of trading the live markets. Until you go through some losses in
trading and learn from experience about what happens when you break the rules of a trading
system, you will never truly become a wolf. You need time and hours of practice implementing
the principles of the wolf with real live trades before you finally get the hang of it and become a
pro consistent trader.
How It Works
First, you pick what size account you want. It can between $10,000 and $1,000,000. The access
fee is 4 - 10% of the account size. For a $629 (swing trading account) or $399 (day trading
account) Assessment fee, you’ll get access to trade $100,000 on the hydra platform using a
demo account. With the demo account, you’re trading fake money. If you pass our performance
assessment, and don't break any of the trading rules, you earn the right to trade a live $100,000
real trading capital account.
So, let's break this down.
To get access to live trading Capital; on a demo account you must: earn a 10% ($10,000) profit
on demo to pass the challenge and get access to a live $100k account without first:
1. losing 6% ($6,000) on the account in total, or
2. sustaining a 5% ($5,000) max loss in a day on the account.
The above example is a $100,000 single phase (swing trading) challenge account for a $629
assessment fee. The same 6% loss overall and 5% max daily loss still apply on this live account
to protect the firm’s capital.
If you can complete this challenge, you’ve have just earned yourself a live $100,000 trading
account, and you can request payouts on the account anytime you want and keep up to 90% of
the profits! .
We also have the 2 phase Day Trading account option which operates a little different. This is
for people who don’t hold overnight and love the excitement of sitting at their computer and
trading in and out in the same day. I used to do this for almost 15 years. But i’ve personally
moved on to swing trading so I can sleep better at night. Im pushing 40 now, Day trading is
better suited for the young souls lol. I served my time haha.
To get access to live trading capital under a 2 phase day trading account you must pass two
separate profit targets.
Phase 1: Must earn 6% Profit Target without first going into a 10% overall loss or 5% in a day
loss.
25
Phase 2: Must earn 9% Profit Target without first going into a 10% overall loss or 5% in a day
Loss.
So you must pass a total profit target of 14% before you get live funding. The catch is you get
access to higher leverage with the day trading option which can result in big profits based on
much smaller intraday moves, which is why the rules and targets are slightly different.
It really just boils down to what type of trader you want to be. Do you want to be a day trader or
a swing trader? You might not know right now. And you will never know until you try each of
them and find out what works best for your personality, work life, and overall lifestyle.
Now, trading is unfortunately very hard. The probability of passing this challenge on the first try
is very low. But if you don’t pass on your first try, that’s no biggie. You properly managed your
risk and still have $9k+. You didn’t just lose everything. If you blew up your account on a normal
broker, you’d have potentially lost your entire $10,000.
If you failed the test at hydra, you have now experienced touching the ever so tempting flame
and got a minor burn. Think about what you learned. Go back to the drawing board and analyze
all your mistakes. Learn from them, and then you can go again when you’re ready. It takes pain
and losses to truly learn the lessons of trading. This is how it is for everyone. I can scream to
you hundreds of times and tell you “DONT DO *Insert lesson* or you will lose.” That likely won’t
be enough. As humans, we love to push boundaries. It’s important for you to learn and
experience these lessons for yourself. Losing as education is a right of passage in trading. It’s
part of the game.
But what if you lose 6% on A $100,000 live account and get disqualified? Do you lose $6,000?
Nope. When trading with a live account, you’re trading the firm's capital. The firm is taking a bet
based on your past performance that they will earn money from your profitable trading split
(10% of payouts go to them + commissions fee’s on the live trading platform once you pass the
evaluation). So, if you do end up losing $6k or 6% on the live account once you get funded you
still suffer no losses, rather the firm does.
Hydrafunding.io is essentially a learning platform that allows traders, like you, to access a firms
capital, learn all the mistakes they need early, without risking all of their money and losing it all
like I did from 2005-2009. I think it’s the perfect environment for new traders to learn. It’s so
easy to blow up on your account on a normal broker. When you trade on a live account on a
centralized exchange, you are free to fuck yourself as hard as you want. Likely, I’m willing to
bet, with almost 100% certainty you will fuck yourself, just as I did in the beginning. With Hydra,
there are strict rules in place set by the broker because you aren’t trading your money. You are
trading their money. This enforces and solidifies the positive trading/risk management habits
that you need to follow in order to become a long-term consistently profitable trader.
26
So if you really want to learn in the safest way possible without risking everything, and build the
proper trading habits you need to ensure long term success and survival in this game. A funded
account is without a doubt the best place to get started.
On top of that, if you really level your skills up you can get access up top $2,000,000 in trading
capital at hydrafunding.io . Imagine just making a 5% gain on that account! How much is that?
$100,000!!! Insane right?
So stop trying to do stupid shit like 2-5x a small account in a short amount of time just to make
$20,000 which is more likely that you will blow up your account eventually. Start operating like a
hedge fund. Get access to large amounts of capital, trade conservative, go for much small
feasible and consistent gains. And eventually if you get good enough. A simple 5% return on the
month, or year even if you really want to slow things down, could still be $100,000 at our peak
funding level.
I suggest you head to hydrafunding.io to checkout our current offers. Pricing/Plans are always
subject to change so just use what I wrote above as references. Prices/offers could be different
by the time you visit our site.
27
Chapter 5 - Trading For a “Living” vs. Trading to Build
Wealth
Are you trading for a living or to build wealth?
The answer really depends on your goals and expectations as a trader. A lot of people look at
trading as a potential exit from their current job or career. They want to quit their stupid job and
become a full-time trader.
While yes, this is possible. It’s not realistic to think this it’s going to be a quick transition.
Personally, I've never looked at trading as my income. For me, it’s a wealth-building tool. If you
keep taking money out of your account, you will never build wealth. You will never be able to
compound any growth. Once you add up commissions, taxes on gains, and trying to take
money out of your account to pay yourself, you’ll see how difficult it is to consistently make
money, let alone grow your account at all, if you’re consistently paying yourself from it.
On top of that, trading is extremely stressful if it’s your only source of income. It will weigh
heavily on your emotional stability. As a result, it will also weigh heavily on your ability to perform
as a trader. You don’t get ’re not getting paid for your time trading. The market doesn't give a
flying fuck how hard you work. You could spend 24 hours a day for 30 days strait trading crypto/
forex/stocks and end the month with a loss. If your only income is trading, what happens when
you have a losing month? What if you have two or blow up your account? Well, then your
fucked.
In my mind, trading for a living/income, is not a realistic approach to trading. To be honest, I
don't know if I've met anyone in my 20-year career who simply just trades and that's it. Why?
Again, it’s not realistic and way too stressful. If you’re stressed out all the time, I promise you
won’t be able to consistently make rational trading decisions, and you certainly won’t be a happy
person.
I find looking at trading as a means to build wealth to be a more sustainable and realistic option.
The market giveth and the market taketh. Your number one goal in trading is simply to learn how
to survive the market. Doing that is a phenomenal accomplishment in itself. Simply not blowing
up your account is amazing and something to be very proud of (lol).
A lot of people ask me about expectations. What's your daily profit goal? How much should I try
to make/month if my account size is $X?
Listen, none of that shit matters. NEVER have expectations in the markets. Never set specific
profit goals. Doing that is a recipe for disaster. Your only goal should be to follow your stop
losses and risk management system. The moment you start setting profit goals, or expectations,
you’ll end up in disappointment and failure.
28
See, I don’t get to determine how much money I make trading. The market conditions determine
this based on the current trading environment and how well I manage my emotions and stress.
Sometimes we’re bull. Sometimes we’re bear. Sometimes there's a spontaneous hyped-up
sector like The Metaverse or AI and we see a big 30-day run in those assets that we can take
advantage of, such as me banking six figures on $MANA during the Facebook Metaverse pump
when Zuck changed the name of Facebook to Meta and all the metaverse coins pumped for a
month then all came crashing down, destroying the HODL noobs who thought were going to
become billionaires holding these shit coins.
Sometimes we’re in a 90-day sideways boring action period where there is literally nothing to do
but jerk off and you’re better off not trading at all because there are no setups forming. The
market goes through cycles for short periods every year, where we see big pumps and dumps.
During these periods, probably 50-60% of the time we’re sideways, sitting on our hands. I call
this the grey area, and it’s where most people fuck up.
The problem is most traders try to continue to use the same strategy that worked in one cycle
into the next cycle. When this happens, they end up giving back all the gains that they made
during a good cycle. The people who do this the most frequently are the ones who are trying to
rely on trading for income, because if they don’t make any money trading, they’re fucked. This,
in turn, forces them to find a trade even if there are no good setups to be had. This, my friends,
is a recipe for disaster. It can end your career in trading. You should never be forced into making
a trade because you need the profit to survive and pay your rent. Good traders wait for the right
trades to come to them. At the end of the day, the market determines the conditions and
opportunities. All you can do is wait for those opportunities to present themselves.
My only goal as a trader is to be flat, or forward, on the balance of my account. Survival and
defense are my number one priority. I must preserve my capital during the bad times and
29
cycles, so that when the good times and cycles show their face again I'm not just trying to make
up for losses to get back to break even. When the good cycles hit, I want to be in a position to
actually making money and move forward on compounding my account. You do this through
discipline and patience, by waiting for the right trading opportunities to arise again and by not
being forced into trades because your life depends on it.
Most traders will go on a win streak during a good cycle. Then they’ll either not lock in profits or
they’ll try to use the same buying strategy after the market environment changes and give back
all their gains. Then by the time a good cycle where that first strategy worked is back again, they
are down big on their accounts and emotionally damaged from a long streak of losers and
“nothing is working” mentality. This is a terrible place to be at the beginning of a new cycle.
When your account is down, you’re going to be fighting back just to get to break even again.
You will no longer in be in a position of power and confidence because you’ll be entering the
new cycle on the tail end of a hot losing streak.
It’s of utmost importance in your first few years of trading that you have financial stability and not
that you do not try to rely on trading for that stability. No matter how good or bad your trading
performance is, you should not rely on it to survive. Your focus should be on survival in the
markets so you can eventually build your capital and overall wealth. So, whatever you’re doing
to sustain yourself right now, you should continue doing that while working on building your
wealth using trading as a tool.
For me, trading has also been what I’d call the tree trunk of my financial wealth. It served as the
foundation and freedom to explore other opportunities. I can trade and make money from
anywhere. I've made millions of dollars trading, and I’ve used this money to do a bunch of stuff. I
bought a Maserati GranTurismo MC Sportline, a Range Rover, and I wakeboard boat. I bought
several $60k Rolexes. I used my profits to pay from my taxes on my trading education business
income. I pulled out my profits to invest in a restaurant, land, villas, and a gym in Bali.
Typically, if I'm pulling money out of my account, I try to “mostly” make it be for something of joy
or to invest in passive income opportunities. Buying a Maserati paid for itself in marketing and
YouTube videos for exposure for my business. Buying watches are like buying an asset in gold.
They increase in value and are very liquid. Plus, they increase social status and confidence.
Using profits to pay my business income taxes allowed me to keep my money in my business,
which helped me grow. My Bali investments will all make me money and allow me to eat for free
(my restaurant), work out for free (my gym), live for free (my villas), and, on top of that, they all
pay me monthly dividends. My trading income has never been for me to pay rent or general
living expenses. It has always served as the tree trunk of my wealth tree that has branched off
to other investments that improve my quality of life and diversify and build my wealth. I believe
this is the best approach to take when trading.
As I said before, just because I made $1.7m in the 2021 Bull Market by no means determines I’ll
do it again the next year. That was a unique year and a huge bull cycle. In 2022, I made $500k
in the Bear Market as Cryptos dropped 80% from their highs. 2023 is still TBD. Tthe whole world
30
might go to shit and we’ll see price action like we’ve never seen before and none of current
strategies work. (Highly unlikely, but it's possible!) I might only make $100k. I might make zero.
Whatever happens doesn’t matter. All that matters is that I’m not losing money. As long as my
focus is on capital preservation and defense, all will be well. I am NEVER fantasizing about the
next bull or bear, or how much money I might make.
The only thing on my mind is “What is the worst-case scenario that could happen here?” and, if
it does happen, “Will I be okay? Will I survive this? Will I still have a healthy million dollar or
more balance in my trading portfolios for when things are good?”
THIS IS ALL THAT MATTERS.
Because if this is what my number one priority is, I still have my knowledge and skill set in
trading. I still have my account balance, which is like having an army at my disposal to go to
battle. And if/when the market presents a huge opportunity again, which it always does, I’m
crouched in the high grass like a fuckin’ lion, patiently waiting for the exact moment to strike and
feast upon my prey. As long as my focus is on capital preservation, and I keep my account
balance mostly intact, the market can do whatever the fuck it wants for whatever period of time
it wants to be in full chaos. I can wait until it’s time to hunt again with my army (trading account
balance) at my disposal ready to deploy.
This is why I never look to trading as my main source of income to rely on. There are some
cycles where you won’t make money for months, or even have a down year or breakeven year
for that matter, either due to market conditions, or sometimes just a string of poor decision
making that could also be triggered by external factors, such as breaking up with your girlfriend,
loss of your day job, divorce, illness, really anything. I’m always prepared for months of no
profits in trading, patiently waiting for the right cycle to hit and crush it. This is why I use trading
as a wealth-building tool to grow and expand my financial opportunities in all aspects of life and
not as a reliance on income to survive.
The way I trade now is mostly swing trading, meaning I’m holding for days to weeks on any
position. This allows me to maybe spend just an hour or two a day on research and setting up
my trade plans and the rest is on auto pilot if those plans work in my favor or not, as my stops
and profit targets are already set. All I’ve gotta do is sit and wait for me to either win or lose as
the stop or profit target is met. So, I have a shit load of time to do other things like write this
book, create content, focus on my health and fitness, personally design and build my dream
home in Bali that took two years of time and effort, and travel all over the world and experience
what most never get the chance to.
So, to sum this up: keep your day job, get a side hustle, or, ideally, find something that can
make you money online to maintain your monthly expenses, and use trading as a tool to truly
build your wealth and lifestyle for the long run. You’ll thank me in five to ten years when you
have a $500k+ trading account capable of huge annual returns and not a $20 -50k account
31
because you spent all your profits, or no account at all because taxes, commissions, losses,
and trying to pay yourself drained your account all the way to zero.
Chapter 6 - The Wolf Routine - Building a Habitual Life of
Discipline
As I’ve have stated before, successful trading all boils down to using a trading system that
works. A trading system is nothing more than a set of rules that tell you what actions you need
to execute in the market and the exact moment you need to take them.
Sounds easy, right?
Well, I promise you it's not. Learning a system and then identifying a pattern within that system
in the market, let's say on bitcoin, can get pretty chaotic. For instance, you set up a trading plan
for a trade on $BTC. Next thing you know El Salvador says they’re adopting Bitcoin and the
market pumps and you get excited and fantasize about how high this is gonna go… “Maybe I
should set my targets higher and not lock in gains here,” you say to yourself (GREED). But the
next day the SEC announces they’re suing Coinbase and the market dumps. Banks are failing
and the stablecoin $USDC depegs 15%. “FUCK WHAT DO I DO?! Maybe I should sell here on
the panic dump. I'm scared. Should I get out of my stablecoins? What if this collapses?” you
think to yourself (FEAR). Your head starts to spin and you question your position and everything
about your trade.
These are just examples I'm giving here, but there are always external influences, such as
news, massive volatility from unknown sources, friends, or gurus with opposite opinions of what
you’re doing with your current trade, etc. It’s a combination of all these things that make trading
hard. The emotional and psychological aspects of trading test you every day. They make you
question yourself, and they test your patience, willpower, fear, greed, and discipline to stick to
your rules no matter WTF is happening out there.
I can highly accurately anticipate what $BTC is going to do most of the time saying it could go
from point A to point B, for example. The hard part is that if I take a trade based on me thinking it
could go from point A to point B, there are still all the crazy things that can happen on the road
from point A to point B. These will test you every day, trying to convince you that you’re wrong.
And we, most definitely, could be wrong.
See, the market is run on fear and greed. It's your job to manipulate these emotional behaviors
of the masses, the sheep, in your favor and have enough emotional discipline to take advantage
of them like a wolf, not to succumb to them.
Discipline is the practice of training people to obey rules or a code of behavior, using
punishment to correct disobedience.
32
For us traders, this means having a set of rules for trading, and then actually following them and
building the habitual behavior of following those rules no matter what. And you will soon find out
what happens when you break these rules and how severe the punishment is for your
disobedience.
So, what can we do to better improve our discipline in trading and build a disciplined habitual
identity so that we can simply follow rules and do the things we tell ourselves that we are going
to do? What is it that actually causes us to change our minds and decide to break the rules that
can result in our failure?
Typically, it’s stress from both internal and/or external forces. This can be your job, girlfriend or
boyfriend, parents, friends, toxic relationships, the shame of your body or appearance, lack of
confidence, social media comparisons, social status, and financial status. All things that can
stress us the fuck out and bleed into our mindset while trying to make a rational trading decision
in a highly volatile and already chaotic trading environment.
Your Personal Relationships
So, what we need to do is identify all the stressors in our life and minimize or remove them.
Identify what relationships you have that you could do without. Are you having a tough time with
loved ones? It’s time to communicate with them that the current status of your relationship is
having a highly negative impact on your ability to stay positive and think clearly during the day,
and most importantly during your work time, thus decreasing your productivity and focus. Are
they not willing to support you in this? Maybe it’s time that unconditional love, is now conditional
for you, and you need to make that tough decision to relinquish a family member.
I mean, imagine how many times in your life someone you have a friendship, relationship, or
family relationship with has caused you to have a bad day. What were you able to get done that
day? Fucking nothing. You were pissed off and consumed by it. The good thing is that keeping
relationships like this in our lives is a choice. Although it’s not “easy” to break away from them, I
promise, it’s worth it. FUCK EVERYONE that doesn’t contribute to your goals. Fuck them hard
and never look back. Now, let’s be real, we don’t have to be an asshole about it. The most
important thing is communication and letting these people know that the relationship is affecting
your life. Give them a chance to see your side. If nothing changes lose all contact and go live
your life and see how much you level up without the extra stress.
Your Relationship with Your Phone and Social Media
We all have so many stressors in our lives daily that we simply don’t need. This includes
notifications on your phone and social media. What I want you to do right now is go on your
phone and go to the Settings > General > Focus > Work and setup a “Work Schedule” on your
phone where you receive absolutely NO NOTIFCATIONS for anything. If you have notifications
on your phone turned on for when someone likes your photo on Instagram right now, my man/
33
women… get your fucking shit together. I’m disgusted... TURN THAT SHIT OFF. I promise you
will thank me later.
Once upon a time, I had all notifications turned on my phone. I literally couldn’t get anything
done. I didn’t even realize it was happening to me. I was so consumed by distractions, and I
spent all my time one notification away from something I DID NOT NEED TO SEE that would
stress me the fuck out, trigger me, or piss me off and, before I knew it, my mind would be
consumed by something negative and I’d no longer be in a clear emotional state to make
rational trading decisions.
With work mode on I get nothing, no SMS, WhatsApp, or social media notifications. Nothing.
The only way for me to see if someone messaged me is for me to go into my apps and manually
check to see. But I even found this also to be a distraction, as I can just as easily get distracted
and consumed by the urge to check my Instagram or Twitter (now X) while in the middle of a
work session, such as writing this book.
There is nothing positive that comes out of checking these apps. It’s nothing more than a
distraction that either gives me that slight dopamine hit that I could really do without or, even
worse, I read or see something that triggers me in a negative way and throws my mind off
balance. One of the best things I ever did was turn off my DMs on Instagram and Twitter (now
X). I minimized the world’s ability to contact me with its negatively skewed influence. The
internet is a terrible place to hang out. Negativity is 10x’ed online vs. the real world. The
algorithm loves shock value and toxicity, and lies spread faster than the truth. I would avoid as
much “communication” as possible online and save that for the real world. Spread your thoughts
and positivity online. Communicate offline.
“But bro what if I’m missing a DM from a girl someday!?” Get fuckkkked mate… I’m a millionaire.
I have social status. I’m a world traveler. I’m in great shape. I’m decent looking. Not one time in
my life did I get a DM from some random girl “first” that meant anything to me. If a girl is
interested, she’ll like a photo, like back, DM her first, and quit being a bitch.
If you want to take it even a step further and have the financial resources to do so, buy a second
phone and put nothing on it other than things that are for productivity or are positively reactive to
your mindset. I have two phones. One phone is my productivity “Work Day” phone and the other
is my night/weekend phone.
Work Phone Apps :
●
●
●
●
Audible for Daily learning with audiobooks
WhatsApp for communication with my team, gf, friends, family (All notifications are off. I
reply when I choose to look and not when I’m working on something.)
Spotify for the music at the gym, podcasts, or study music when I'm in deep work mode
The default camera app if I need to shoot some content or photos
34
●
My trading apps if I need to take a live trade or monitor something in real-time
That’s it.
No social media. No email. No notifications.
When you do this, you drastically does several things. On the one hand, you reduce your screen
time and social media consumption, which typically doesn't inspire us, but rather makes us more
depressed due to comparison syndrome. On the other, it also increases your ability to achieve a
“flow state,” aka one's ability to achieve great focus and productivity without distraction. It also
gives us a daily dopamine detox to reset our brain. The most important thing a second phone
does is minimizes the chances that we are hit with an external force that causes us mental pain
or stress that could derail us from having a positively charged mindset that allows to operate at
peak performance. The state of our “mind” is the most important aspect of our success in life.
You must protect it at all costs. If you are constantly bombarded with the distractions that come
along with having a smart phone, you will never achieve greatness. You will constantly be
distracted and triggered. Protect your mindset wolves… AT ALL COSTS.
My play phone has everything on it… All the bells and whistles that are so distracting and can
ruin one's ability to get anything done in a day and/or cause so much stress that it can
drastically change the course of our happiness or success on any given day. I would highly
recommend working toward the ability to have a second phone. It’s not a cost. It’s an investment
in yourself. It will easily pay for itself with the increase in productivity, happiness, and wealth it
will curate. If you can’t afford this now and that's unrealistic, always turn on “work mode” during
the day on your phone.
Your Relationship with Your Body
The next step is to design a daily routine that revolves around several things. The first thing is a
body and mind wellness-focused routine. A happy body is a happy mind. You MUST have a
happy mind to have a productive mind. The second is having a structure that lets you get the
most important things done first, allowing you to use your brain power for the most highly
demanding things that’ll produce the highest ROI first, and not last. Our brains only have so
much strength, and as the day drags on it becomes more difficult to operate at peak
performance. Just like our muscles, our brains get tired.
For example, I’m an avid gym goer. When I set up my workout routine my first exercise is
always the most demanding one that has the highest ROI. For leg day, the most important
exercise is squats. So, my first exercise is obviously squats. It actually takes me almost 50
minutes just to complete this set when I include starting with five minutes of incline treadmill
walking backward, stretching, and then three warm-up sets before I even get to my five working
sets. I'm exhausted after squats are done, yet it was only the first workout of the overall routine.
But everything after the squats are other less demanding workouts that target different areas of
my legs. But if I did the other leg workouts first and squats last, my squat performance would be
35
much weaker, because I’d have already tired myself out and I wouldn’t reach my full squat
potential.
You must also do this for your brain. Put your most demanding, rewarding, and high ROI tasks
first before anything else. Many of us choose the mentally easy things first because, well…
they’re easy. But this is the wrong way.
Successful trading and a successful life, in general, both start with how you live and structure
your life in the first place. So, ask yourself: Are you a sloppy person? Do you just eat whatever
you want and get fat not caring about the consequences? Are you able to commit to a five to six
day per week workout routine and get to the gym no matter what? Are you able to tell yourself
that you’re not going to drink this weekend, and actually not drink?
Becoming a disciplined trader starts by having a disciplined life and routine that optimizes your
body, health, and sleep with the end goal of your mind being in a calm, clear, and confident
state so that you can wake up every day with the ability to make clear and rational decisions
and not succumb to the sheepish swings of fear and greed that will test you every day of your
life in the markets.
So, let me break down exactly what my routine looks like, and pretty much how every day looks
for me. It's structured so that I'm always focused on my health over anything else. Everything
starts with me taking care of my body. If I can do that, my endorphins get pumping, it's a natural
stress and anxiety reliever, and I physically look better. The better I look when I wake up and
look at myself in the mirror the more confident in myself I am. The more confident I am, the less
shame I feel, the fewer “I’m not capable” thoughts I have, and the more ability I have to go out
and fucking crush any obstacles that may arise today because I look and feel fucking great and,
ideally, I haven’t flooded my mind with distractions from social media or toxic relationships in my
life.
My Schedule
•
6 am – 9 am. I check play phone for five minutes, get a dopamine hit, and then put it in
my safe. I check my trades and see if there are any time-sensitive emergencies that
need to be addressed. I get out of bed and go to a cafe or my home office. I have cold
brew coffee and listen to “deep focus” playlist on YouTube music/Spotify. My goal here is
to enter a flow state and focus on my most important project that will create the highest
ROI for my trading or business. This could either be fine-tuning trading strategies,
analyzing what I did right or wrong to improve profitability, or focusing on whatever
project I'm working on that will best serve my future and needs to get done ASAP before
anything. The main goal of this window is to spend time on whatever task will produce
the highest ROI and better your future. This time window is my brain “squats” sets.
Everything else throughout the day supplements what I do here.
•
9 am - 9:30 am. I check my latest open trades and research any new opportunities.
36
•
9:30 am - 11:30 am. I go to the gym while listening to a self-help, business, or trading
audiobook. Sometimes I just some good tunes to hype me up for my workout. If I have
time after my workout, I’ll sauna and get some sunlight to tan and soak in some healthy
vitamin D at the spa. (My gym has a sauna, cold bath, and sundeck.)
My workout routine is as follows:
Monday. Legs (squat focused) and an afternoon walk.
Tuesday. Push day and an afternoon walk.
Wednesday. Hot Yoga in the morning and tennis with a coach in the afternoon.
Thursday. Pull day and an afternoon walk.
Friday. Glutes day and an afternoon walk.
Saturday. Hot Yoga.
Sunday. Golf practice with coach for two hours.
•
11:30 am – 1 pm. Lunch. Either a full keto lunch for mental clarity or caloric-restricted
macros to about 500-600 calories from a meal prep company.
•
1 pm – 5 pm. Content creation, then I check on WhatsApp/emails with the team about
my businesses and investments.
•
5 pm – 7 pm. My play phone is back in my possession. I check social media and get my
dopamine hits. My downtime varies from a 90 minute recovery massage, walks on the
beach with my girlfriend at sunset, or walks on the beach/treadmill listening to an
audiobook to increase my knowledge, in addition to trying to maintain 10,000 steps/day.
•
7 pm - 9:30 pm. I recheck my trading positions or new trading opportunities, followed by
dinner with my girlfriend or an occasional dinner out with friends, followed by spending
time with my girlfriend watching a new show and getting ready for bed. If at home my
blue light glasses are on.
•
9:30 pm – 10:30 pm. Screens are off and begin to wind down. I don’t follow this
religiously because sometimes life gets in the way. But it definitely helps my sleep big
time. I read a book on Kindle and or chat and spend time with my girlfriend. But let’s be
real, sometimes we binge a new show until we fall asleep.
•
10:30 pm – 11-ish. Zzzz.
This is basically on repeat for me 24/7/365. It’s structured, it's disciplined, and its focus is mainly
on my physical and mental health. This allows me to operate at a higher mental capacity. If
you’re not working on your physical health your mental health is going to be a disaster. Hot yoga
is probably the most therapeutic thing I do to manage stress. It's extremely physically and
mentally demanding. It's a workout, stretching, sauna, breath work, and meditation all in one.
There's really nothing else out there that can tick all these extremely important boxes in life. It's
been a huge part of my ability to manage the most stressful times in my trading career and life
in general.
37
My diet is a well-balanced diet. I used to be all about keto and low carb. On keto, I felt great and
got lean, but it led to me binging and purging because it was too extreme to one side of the
spectrum as my body craves carbs/sweets. I tried vegan, and to be honest I’d never felt more
energized. I “felt clean” and my girlfriend called me “The Green mannnn,” and I was even seeing
huge gains in the gym. However, it was also too extreme to one side of the spectrum and meat
is my favorite thing on the planet.
The most important thing you can do for your diet is simply to monitor your caloric intake. Right
now, I'm eating a well-balanced diet. I’m about 194 lbs., 6’1, 38 years old, and my only focus is
that I eat about 1 gram of protein/pound of my body weight. Other than that, I pretty much eat
whatever the fuck I want as long as it’s not some processed bullshit. I rarely drink. l don't smoke.
I don't do any drugs (anymore). From the age of 15-32 I drank, smoked cigarettes, and did
drugs almost every weekend (lo)l. Thankfully, I can’t physically do that anymore and I had to quit
everything. But I do love some treats! Every day I have some sort of treat in moderation that
typically accounts for around 250 of my overall calories in a day.
I eat about 2000- 2600 calories/day. For my abs to really peak, I have to be down to about 2000
calories/day but it's very difficult to maintain that low of calories. I pretty much have to be in a
hungry state all the time and have the discipline to NOT EAT when my body is still screaming I
WANT MORE! When I’m sticking to 2000 calories/day, I can rarely go out to dinner because it’s
too difficult to track calories and restaurants use a shit load of oil. So, while a side of vegetables
might look like its 50 calories, it could actually be 200 calories on your plate covered and cooked
in oils. This is why abs are so exclusive. Other than a small subgroup of humans who have an
extremely high metabolism who just “have abs,” it requires a level of discipline that only a very
small percentage of the world population can maintain. Abs are not revealed by going to the
gym. They are revealed by not eating food even though you want to. Keto, low carb, vegan,
carnivore, etc. None of that shit matters. The only thing that matters is your caloric intake vs.
caloric expenditure. I’ve tried every diet under the sun. The only thing that works is what I’m
about to explain below. And it is basically starving yourself (lol). It's not fun at all and it takes
discipline.
The Baseline for Getting and Maintaining Abs
First, find out what your base metabolic rate is. This is about how many calories you naturally
burn in a day, not including working out. Mine is about 2000 calories, give or take. So, basically,
if I REALLY want my abs to show and be in a caloric deficit aka burn more calories than I
consume, I have to maintain an average of 2000 calories/day per week. This can be very
difficult for someone who workouts six days/week and has a very mentally demanding work
schedule, especially when I want to have a social life and I enjoy going out to eat at nice
restaurants with friends and my girlfriend.
Have you seen Brian Johnson? He’s the most studied man on the planet and is attempting to
reverse aging. His daily caloric intake, for example, is 2000 calories based on his stats. What
38
about body builders when they’re cutting for a show? For instance, “Cbum” Chris Bumstead,
who has won Mr. Olympia four times, weighs between 230-264 lbs. and eats just 2177 calories/
day to get ready for his show to be on stage. This is an extreme caloric deficit for his bodyweight
and how much he’s working out. This is why he’s so shredded on stage.
Right now, my abs are okay. They’re great for small periods, as it’s way too difficult to try and
stay around 2000 calories/day. I even tried Ozempic to reduce my appetite, but the side effects
were bad. I was nauseous, couldn't focus, and couldn’t have a good workout because I felt like
absolute shit (lol). Ozempic is a peptide called Semaglutide. Elon Musk actually takes it, and
that’s how he lost weight. But my goal isn’t to lose weight. My goal is to help maintain a slight
caloric deficit so I’m more ripped.
The secret is to find foods that are enjoyable to eat, not processed, and to maintain a relatively
low caloric intake near, or at, your base metabolic rate. I will tell you this… restricting the foods
you enjoy is a recipe for disaster. Eat what you want. Just do it in moderation and track your
calories using an app like Myfitnesspal or Carbon.
You can find out what your BMR is on your iPhone by going to Health > Show All Health Data >
Resting Energy. You can see mine for the year is 1935 calories. So, I have to eat quite a low
amount of calories in order to have a body fat percentage low enough to see my abs. You will
have to test and see what works for you. It doesn’t matter what diet you choose, just find one
that is the most sustainable long-term and track your calories.
39
You will have to test and find out for yourself what works for you. But for me, even if I'm working
out six days/week and getting 10k steps/day, I have to be close to 2000 calories/day, which is
also my BMR, if I want visible abs. While logic would say if my BMR is 2000 and I’m burning
700/day in calories I’d be burning 2700 calories/day, which would let me eat 2600 calories/day
while being in deficit, this hasn't been the case for me. You also have to factor in the fact that
the tools available to measure your caloric burn and calorie counting are all very inaccurate. We
don’t really have very good tools to measure this stuff. You can really only guesstimate, test,
and adjust. A consistent 2000-ish calories are where I get to ~15% body fat and can see my abs
no matter how hard my workout routine is.
You can also go to the Fitness app on your iPhone and find out exactly how many calories you
have burned for the day as well. This calculates your combined calories burned based on BMR,
steps, and any workouts you tracked on your Apple Watch, if you have one. (Side note, did you
know that Apple is the largest watch company in the world? Pretty crazy.) So, for instance,
yesterday I got my workout done in the morning and walked 10,000 steps on the beach in the
afternoon. In total, its estimated that I burned 3166 calories for the day. I consumed about 2300
calories today. So, based on these estimates, I was in a caloric deficit and I will lose body fat,
and potentially even muscle too if I'm not consuming enough protein.
40
I will leave you with this when trying to eat a lower caloric intake. One thing that has helped me
is changing up my protein sources. Unfortunately, my two favorite meats are steak and salmon.
For a long time, I ate both of these almost every day. The problem is that these are two of the
most calorically dense meats available. This made it extremely difficult to maintain a caloric
deficit when eating these every day. To fix this, I limited myself to eating steak only on nights I
dined out, and I switched most my home meal protein sources to chicken, shrimp, and white
fish. By doing this, I cut my calories by 50% while maintaining the same amount of protein
intake.
Let’s look at the calories/100 gram for these protein sources.
•
•
100 Gram Ny Steak/Striploin (220 calories)
100 Gram Salmon (206 calories)
Compare this to…
•
•
•
100 Gram Shrimp (100 calories)
100 Gram Skinless Chicken Breast (120 calories)
100 Gram Ground Lean Pork (121 calories)
41
•
100 Gram Halibut (111 calories)
So, as you can see, just by making a simple switch to eating some still very delicious proteins,
you can cut your protein based caloric intake in by half. At least, that was the case for me, since
I was mostly eating beef and salmon as my protein sources. So, it’s good to know what you are
eating and how many calories are in the different foods you consume so you can better meet
your caloric intake goals.
Okay, end of Fous fitness and nutrition coaching (lol). But, again, this all comes together in the
end. An optimized body sets the stage for an optimized mind, and an optimized mind is
REQUIRED to crush life and trading.
42
Chapter 7 - The Power of Environment
What about partying, drugs, hookers, and alcohol? Isn’t that what we see in the movies like Wolf
of Wall Street? To be clear, from 15-32 I was a borderline alcoholic and I tried, and continually
did, just about every drug there was short of heroin/fentanyl (lol).
I made it to about 32 until my body just physically couldn't metabolize all these toxins I was
putting in my body. I simply had to stop everything. I could no longer function in this state of
hungover/recovery. A night out would result in a four-day recovery. The cons began to outweigh
the five hours of fun for a night out. I was exhausted, broken, and in an eternal “come down”
state of depression. My life was a mess. To be honest, for the first few years of my 30s, I was
mentally in a pretty bad place. I had to make the choice of continuing to party with my friends or
my mental health, business, and trading. I made the choice to stop partying and I never looked
back. I only wished I had done it sooner in my life. The problem was 100% my environment.
The group of friends I had was structured around drinking and partying, which would also lead
to cocaine and Molly in the late hours of the night. For a long time, I loved it and wanted to be
there, but then I just couldn't physically keep up anymore. Now, could I have just got new
friends? Kind of a hard thing to do. I loved my friends and still do today, but I was moving on to
the next chapter of my life and I needed to make a transition, which is always a difficult task to
undertake. Could I have just gone out and not drank and done drugs? Fuck that. I hate being
around wasted people when I'm sober. The easier thing for me was to just leave and go
somewhere else. Now, admittedly, this is a very dramatic and bold move, but it’s exactly what I
did. I sold all my shit, and left the country with my girlfriend at the time who didn’t drink, worked
online, and loved yoga. It was the best decision of my life. I found an opportunity for an exit, and
I jumped without hesitation.
Most of our bad habits that crush our ability to maintain discipline and achieve our goals are
made much more difficult by the environment we’re in. Let me give some examples where
you’re trying to stop a bad habit but are actually setting yourself up for disaster.
•
Trying to quit smoking but your friends and co-workers are always smoking in front of
you every day.
•
You want to reduce your caloric intake but you keep filling up your refrigerator with easygrab snack foods or your partner/roommate does because they are sloppy and don't give
a shit and could care less about what your goals are. The result is that every time you
open the fridge you’re faced with temptation.
•
You want to work out every day but your roommate and friends keep telling you to live a
little and come drink with them, so you skip tomorrow’s workout because you’re
hungover, all because you caved into their wants and needs rather than catering to your
own.
43
•
You want to become a disciplined trader, but you’re in these Telegram groups where
everyone is saying, “This is the best game-changing investment in the world and you
should buy in and HODL and never sell and we will all be rich soon!” Then you lose it all
as you watch everything come crashing down later because, as a part of the irrational
mind virus the group created, you held.
The point is, you become a product of your environment. You become a creature of habit based
on the people's behavior you surround yourself with. If you fill your refrigerator up with
processed snack foods and treats you’re setting yourself up for failure if you’re trying to get in
shape and lean. If you constantly surround yourself with people who don’t take your wants and
needs into consideration and tell you to “live a little” instead, ask yourself: Are they really your
friends or are they just using you for their own personal benefit? True friends should take your
wants and needs into consideration and support you in those endeavors. If they don’t then it
means you no longer have the same interests/goals in common and you should look to spend
less time with them. This doesn't mean you can’t still be friends, but if they’re enablers of bad
habits that stray you away from your goals, they are a toxicity in your environment that needs to
be taken seriously.
While we all need to take personal responsibility and learn to say NO, the most important and
easiest hack for building a more disciplined and successful life is changing your environment in
a way that's not set up with constant temptations that are not in support of your wants, needs,
desires, and goals. This might require a bold and unthinkable decision in your life, such as
moving, getting new friends, or telling your parents to fuck off, but I promise, if you want to
succeed over the competition, you must work toward setting up an environment that's designed
to help you win.
44
Chapter 8 – Mentor + Community: The
Closest Thing to Get Rich Quick There Is
“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.”
-Tony Robbins
The closest thing to a get rich quick scheme is finding a good mentor and community. Put
differently, controlling your environment, as we discussed in the last chapter, also includes the
people that surround you. A healthy community and a quality mentor can help you “get started”
with the proper foundation, vastly minimizing the “time to success” rate when compared to
learning on your own. With a mentor and a community, you’re learning from someone and their
community who’ve already found success using a system that works.
Remember when I said 98% of traders fail simply by getting started the wrong way? Well, I was
part of that 98%. When I first got started in trading in 2005, I didn’t have a clue what I was doing.
Hell, I sold my car for $10,000 so I could have some money to start. (Don’t do that.) I took that
money and opened a trading account on E*TRADE with a single goal in mind: GET RICH. My
strategy? I went to the homepage and bought the cheapest stock because I figured it had the
post upside potential. Within the year, my account was zero. I don’t say this out of a wild guess.
I say this out of my own personal experience, statistical facts, and personally watching 1000s of
traders fail in my 20-year career. When I first started, I took the approach of the sheep. I entered
the market with no knowledge or experience. I thought I could just “wing it” because, “who has
time for training and education,” right? I wanted to get rich, and I wanted to get rich NOW!
It wasn’t until I joined 3stocksonfire.com, which no longer exists, and paid them $50/month that
I, finally, started to learn anything useful that I could take and implement into my own trading.
There I also met a community of like-minded people who shared a one common desired
outcome: learn and make money trading. And, of course, there was the head trader and mentor
under the pseudonym “David Randolph,” which was a fake American-sounding name he used
because he was from Lisbon, Portugal with a very foreign-sounding real name. I suppose they
wanted to sound more American and welcoming, since most of their audience was in the USA
and we were trading US stocks.
Under his guidance and community, I was able to build the foundation and framework of a
winning trading strategy that I could build upon. Granted, he didn't actually have any sort of
guide or trading course to buy, all he did was provide trading alerts and detailed explanations of
why he was buying or selling. It was a “learn as you go process” as opposed to a detailed
trading course that came with a trading system and philosophy. (Remember this was back in
2005. Online courses weren’t really a "thing” yet. College was still “the thing.”)
45
Because of this “learn as you go” process, it took drastically longer for me to make money. This
delayed the time it took to ever make money trading drastically. It took me nearly four years of
“learning as I go” to finally build a trading system I could follow and use. No one had provided
me with one. I had to build my own from scratch. And that took time, time where I wasn’t making
money. I had a sort of “guide” at 3stocksonfire.com with “David,” but he surely wasn’t a mentor
who provided me a framework and a rule-based system to follow. No one taught me about
trading psychology, emotional management, risk management, or a framework for finding the
next trade, answering the golden questions of “Where and when to I buy?” and “Where and
when do I sell?” Rather, it took me years of trial and error to figure this out on my own.
Now, if someone told me back in 2005, “Hey, Cam, I know you want to trade and get rich but, if
you start today and take the path you’re about to go on, you won’t make any money until late
2009. In fact, you’re going to lose a lot of money along the way.” Well, I would’ve kept my car
and done something else with my life.
What I’m telling you now is me being 100% honest based on my personal experience and
watching 1000s of traders fail. If you don’t get a mentor and find a good community, then it could
easily be a three to five year process before you ever make money. Or, more likely, without a
mentor or community, you’d just never make money at all and give up.
With a good mentor, you can drastically cut down the amount of time to start profiting in the
markets to your first year. Is this guaranteed? Fuck no. Nothing is guaranteed. It’s up to you to
take that leap of faith and bet on yourself and see if you have the discipline to learn a trading
system and actually follow it. Mentors and coaches can teach everything they know about their
system, philosophy, and framework for success, but once that knowledge is passed on, it’s up to
the player's/trader’s own discipline to make it work while the mentor is there to continually
support and encourage the player. The reality? Not all players/traders have what it takes to win.
That’s just life. Life isn’t fair. Not everyone can, or will, win. But if you never try, you’ll certainly
never find out if you can succeed and be great. All great professionals who become the best on
this planet, in every industry, had a great mentor, coach, and/or team/community that they can
attribute a large portion of their success too.
Otto von Bismarck once said, “Only a fool learns from his
own mistakes. The wise man learns from the mistakes of
others.”
Again this is why funding an account with Hydrafunding.io can be so beneficial. Even after you
learn a framework for a trading system, there is going to be a huge learning curve for you to get
the hang of trading a live account. Your emotions will start running wild when you still haven't
46
figured out how to control them yet. You might have the knowledge, a mentor, and a community,
but do you have any experience?
Starting with funded accounts allows you to gain experience trading without risking and
potentially losing your entire trading account like I did three times over my four-year learning
process before I started to make money.
Though, there is an alternative I want to address that I’ve personally tried as well — a free paper
trading demo account. This is strictly fake money. We don’t provide this, but there are other free
paper trading “demo” accounts out there. However, I don’t recommend these. Why? Because
with paper trading you have ZERO skin in the game. You have nothing to lose. And when you
have nothing to lose there are no emotions involved in trading. And the biggest reason why
traders fail is that their “emotions” get in the way of them making rational decisions, disabling
their ability to maintain enough discipline to follow their own trading rules. So, trading a fake
money account, with nothing to lose, is not a realistic way to gain any real practical experience
in trading. If you lose nothing happens. You risked nothing, so you will have zero attachment
and zero emotions involved. This is not how trading works, and, if you do it this way, you will not
strengthen the muscle of emotional discipline that you need to succeed. It's a silly game that
doesn't teach you how to handle real-life situations. You can try and test this for yourself, but
you’ll soon see just how different trading an account with nothing to lose vs. trading an account
with something to lose. It's apples and oranges. It’s simply not comparable. When you are in a
live trade and all a sudden news comes out or you are nearing your stop level or profit target
level. Your emotions are high. Your heart rate increases. Your hands sweat. You’ll most definitely
drop some “FUCK!” or “DAMN IT!” or “SHIT” out loud when you’re on the edge of your seat,
wondering if your stop or target will be hit. You need to learn how to control these emotions if
you want to succeed at trading.
Now, I’m not saying just jump into a normal account. With a normal account, you could lose
100% of your account. With a funded account like Hydra you risk your assessment fee, such as
$1,000 for a $100k account. When you have money on the line, even if it’s a small amount, the
win or loss affects you both financially and emotionally, and you will be able to build the
discipline that’s required to succeed. This is why I recommend that your learning process should
start with a funded trading account. Then you can work your way up to having your own
account, once you’ve learned all the lessons you need to learn to trade on your own.
How to Pick a Mentor?
Now, obviously you’ve already somewhat explored the idea of having me as your mentor. You
bought this book. To be honest, the reason I'm writing this book is, yes, to teach traders the
principles of a successful trader based on my 20 years of experience, but also my end goal is
that you might be interested in my more advanced training programs to further accelerate your
trading career and potential profits, so that maybe one day you can make six figure profit trades,
travel the world, and use trading to build millions of dollars in wealth and invest in the things you
47
love outside of trading as well, just like me. You’re still going to learn some game changing stuff
in this book — as I’m sure you already have, right? — but, I still have a lot more to offer outside
of this.
Listen, I'm not going to sit here and write this section about why me. You can decide that for
yourself based on the value I provide in this book. But, what I will do, is tell you how I pick my
mentors. Personally, I’ve probably spent over $50,000 on online courses and mentor programs.
Maybe more? I lost track.
What I do know is that I’ve tried the winging it on my own strategy. Didn’t work. I tried the cheap
routes, like paying $50/month for 3stocksonfire trade alerts to try and copycat without education.
And, while I still succeeded, it took me nearly five years of failure before I ever had anything to
show for it with a nice big six figure trading account.
Now, I don't know about you, but I don't have five years to fuck off nor would I sign up for that if
I’d known how long it was going to take. The most valuable asset in our life is time. Every year
that goes by time becomes more limited and valuable. The older you get, the more you realize
this. I was 20 when I started trading in 2005. I thought I had all the time in the world. As I’m
writing this, I’m about to turn 39 in two months. These 19 years felt like the snap of a finger. So,
whoever says you have time, you don’t. It’s a lie. But what you do have is control of over how
you spend the time you have left. Wasting your, or someone else's, is the highest form of
disrespect. So, please, don’t disrespect yourself. When you do, you’ll always regret it later.
I’ve taken online courses in all different areas — from trading, YouTube, Instagram, dating,
Facebook ads, YouTube ads, online business strategy, graphic design, marketing, sports, and
many more. Whatever skill I’m learning I pay for them most efficient path to proficiency in that
skill because I value my time over anything. Most of the courses were well worth it. Some were
okay, but I don’t think I ever asked for a refund on any of them, mostly because I did my
research first, so I knew what I was getting myself into.
So how did I choose my mentors?
1. I read their book.
Typically, if someone has enough knowledge to write a book, they’ve been in the game for a
while and they know a lot. I’ve read countless books in all aspects of life and business. If it's
good, I'm usually interested in learning more, if they offer it. I recently just read someone's book
about YouTube after my channel was essentially shadowbanned for a year at 447,000 subs.
This was all because I made videos about the SEC v. XRP case. I felt a bit lost about what to do
with my broken channel. After reading this book, I had more clarity about how YouTube worked
but my channel was still broken. I then found out I could speak to him for $1000/hour. So, I did.
He literally told me that my account was shadowbanned and the analytics were the worst he'd
ever seen. He has clients like Mr. Beast, so I believed what he said. And it proved my suspicions
48
of something being wrong with my account to be true. He suggested I start another channel,
after 15 years of work on mine, as the damage on my channel after getting banned from
YouTube for making videos about the XRP v. SEC lawsuit might not be repairable as he told me,
“YouTube is very government sensitive.” My YouTube account was literally shut down. Now, I
eventually got it back, but it was still declining ever since then they reinstated it. Something was
clearly different/wrong. After talking to this mentor, and two separate employees at YouTube, I
got confirmation that my channel was indeed being limited in its reach. So, currently I'm still on
my channel, in case it comes back and self-repairs. But I’m also starting a new one with a
different approach. I then found out he offered a full program for $6000 for his more advanced
strategy and philosophy on YouTube. So, I bought that too because I continued to build trust
from the knowledge I was gained from him. Now to be clear, I've bought many courses from
people who didn’t write a book, but a book really let you get you to know that person more and
what kind of knowledge they possess.
2. Have they personally achieved results for themselves?
The best mentors are the ones who actually spent years achieving the results that you want to
achieve. This is important because they’ll have lived through all the trauma that you’re about to
go through to get to where they are. They’ll know what you’ll be going through and they can
relay the info that you’ll need. The opposite of this is kind of like when you see a “fat” personal
trainer at the gym. Ironic, right? Or you see someone selling “How to Grow on Instagram”
courses on IG, but the only thing they ever did was grow an account on Instagram creating
content on “how to grow on Instagram.” The problem is they have no personal experience
growing an Instagram account, other than one talking about how to grow on Instagram. Even
MORE ironic, right? So, when you’re evaluating a mentor, ask yourself if they’re showing results
that are personally relatable to you. If you see any of these forex guys out there who just show
their Lambo and a few odd profit screenshots with no consistent gain over time, you can pretty
much be 100% sure they don’t have personal results and the money for all their flashy stuff is
coming from other sources. I’ve personally made millions trading, and I've documented it all
over my social media since 2009. Have I made millions in course sales too? You’re damn right I
have! Maybe I’ll eventually make a million on this book too. Why should I be ashamed of that or
try to hide it? I love to make money. Don’t you? Trading is just one of many ways I make money,
and it’s my primary passion. Trading is definitely the most “exciting” way I make money.
Honestly, writing this book kind of reminds of college. It’s very tedious and not very exciting. In
fact, I can’t wait to finish it so I don't have to spend three hours a day on it (lol). I’m not a writer
at all. I hate writing. But I thought getting all this information out there and on paper would be
beneficial for both you and me.
3. Are they notable on social media?
What's their tone? Do you like them? Are you consistently having “ah ha” moments by the things
they say? Or consistently listening to what they say and being like “LOL … I like this guy/girl.” A
49
lot of great mentors don’t have a book, but they do have a great social media presence. So, if
they have a sizable following, while not required, it typically means they’re pushing out some
good information that a lot of people are finding valuable. That said, the only thing that matters
to me is if I personally found value in what they’re saying. If there is an option to pay to learn
more, then I’m much more inclined to pay for it if they have a good reputation on social media.
Just like in trading, if you have something on the line, such as paying for mentorship, you will
dedicate much more time. With FREE information you have nothing to lose, so you typically put
in less effort into learning what it is they’re teaching. On the other hand, if their feed is big simply
because of posting Lambos, no value, and no knowledge bombs? Sure, they found success in
some way, shape, or form, but I’d bet it wasn’t from personally practicing what they’re
preaching. I have no interest in buying from them. Unfortunately, most lower-income people,
who lack knowledge, buy from the Lambo guy because what they really want is a Lambo, not
what they’re saying they’re teaching. These people want to get rich quick. News flash… not
happening. If you go with these people, you’re not getting that Lambo and your mentor
“investment” is going to be thrown in the trash.
4. What are other people saying?
Now, obviously, one of the most important things is what are others saying about this person
and their mentor program/course. Typically, I try to look around this person's community and see
what the comments section looks like from long-time fans referencing things like “Another great
piece of content!” I’m look to see if people confirm that they’re consistently “good.” I also look at
text/video testimonials and case studies. I posted a Twitter post asking my audience what they
thought about me as a trader and mentor after following me over the years. There are hundreds
of positive comments from people all over the world. (It’s pinned at my twitter.com/cameronfous
account now.) There are students like Tradelikemike who quit his job in finance, went through
my program, was crushing it, eventually worked for me as part of my team, and then went off to
build his own trading community. He’s now made millions of dollars trading, and he owns
Tradeclub in Down in Florida, which is essentially a co-working space for traders. There’s also
all these video testimonials from students who recently went through my Crypto courses HERE.
5. How long have they been doing this?
There's something called the 10,000 Hour rule. This means that it takes 10,000 hours to truly be
an expert at something. For instance, let's say someone spends four hours/day mastering
something for a year straight. Now, this is kinda unrealistic in itself. That would be 1460 hours/
year. To reach 10,000 hours at that rate would take 6.84 years. So, when I look for a mentor, I
look for someone who has been in the game for MINIMUM of five years before I consider
investing my time and money with them. This doesn't mean that they can’t be really skillful and
knowledgeable people that only have a year or two of knowledge, experience, and results. But
when we’re looking for mentors we’re looking for the absolute best, with the most real-life
experience and knowledge. Personally, I’d imagine I have somewhere around 25,000 hours of
50
time practicing the skill of trading. I’ve been through bull markets, bear markets, economic
meltdowns, and everything in between. If a trading mentor has only been around a few years,
they will have no idea how to react to a major shift in market behavior, which will typically result
in them getting crushed, because they haven't been around long enough to personally
experience it yet. This is why I was able to make $500,000 in the 2022 bear market, while most
people were down 70-90% or completely wiped out.
So, That’s How You Choose a Mentor
So, that's it. That’s what I look for before I invest in any sort of mentor in any skillset I’m
learning.
1.
2.
3.
4.
5.
Do I like them?
Do I trust them?
Are they showing real results consistently over time?
What are others saying?
How long have they been doing this?
If they meet these requirements then take my money and teach me to be better at this skill in
the most efficient way possible!
51
Chapter 9 - The Basic Terms
I want to briefly cover some very basic vocab and concepts for the true beginner here. This is so
you have a better idea about what some of the words mean — long vs. short, spot vs. futures,
order types, etc. If you already have some trading experience and understand these concepts, I
think it’s safe for you to skip this chapter and move along. But for the beginner trader, it’s
important to know these terms and what they mean.
Day Trader
Someone who buys and sells within the same day to earn a profit.
Swing Trader
Someone who buys and holds for more than one day and later sells later hopefully for a profit.
Retail Trader
A retail trader is an individual, or small business, that trades securities intending to earn a profit.
Retail traders typically trade in smaller amounts than institutional investors, and they often use
different strategies. Here are some of the key characteristics of retail traders:
●
●
●
●
They trade for their own personal accounts, rather than on behalf of an institution.
They typically have less capital than institutional investors.
They often use different trading strategies than institutional investors.
They may be more likely to be influenced by emotions than institutional investors.
Institutional Trader
An institutional trader is a trader who trades on behalf of an institution, such as a pension fund,
hedge fund, or insurance company. Institutional traders typically trade in large volumes and
have access to sophisticated trading tools and resources. Here are some of the key
characteristics of institutional traders:
●
●
●
●
They trade on behalf of an institution, rather than for their own personal accounts.
They typically have more capital than retail traders.
They often use sophisticated trading tools and resources.
They may be more likely to use quantitative trading strategies than retail traders.
Technical Analysis
Technical analysis is a method of analyzing financial market data to forecast future price
movements. It’s based on the idea that market prices reflect all relevant information, and that
past price movements can be used to predict future movements. Technical analysts use a
52
variety of tools and indicators to analyze price charts, including trendlines, moving averages,
and candlestick patterns.
Fundamental Analysis
Fundamental analysis is a method of evaluating the intrinsic value of an asset, such as a stock
or a bond. It involves analyzing a company's financial statements, management, industry, and
economic conditions to determine its true worth. Fundamental analysts believe that the market
price of an asset will eventually converge to its intrinsic value over time.
HODL
HODL is a term used in the cryptocurrency community to describe the practice of buying and
holding cryptocurrencies for the long term, regardless of market volatility. The term originated in
2013 as a misspelling of "hold" in a forum post by a user named GameKyuubi. The post was
titled "I AM HODLING," and it explained that GameKyuubi was not planning to sell his Bitcoin
investments, even though the price was falling.
WAGMI
WAGMI is an acronym that stands for "We're All Gonna Make It." It’s a term used in the
cryptocurrency community to express confidence in the future of cryptocurrencies. WAGMI is
often used as a rallying cry to encourage people to stay positive and not give up on their
investments, even during periods of market volatility.
FUD
FUD stands for "fear, uncertainty, and doubt." It is a propaganda tactic used to influence
perception by disseminating negative and dubious claims, or false information. It is a
manifestation of the appeal to fear.
Long or “Going Long”
This means that you’re buying an asset, stock, or coin with anticipation that you are going to sell
it at a high price later.
Short or “Going Short”
This means you’re selling an asset, stock, or coin with anticipation that you can buy it back later
at a lower price for profit. This enables you to make money when prices are crashing.
Essentially, it works like this: Behind the scenes your broker takes out a loan for you on margin
and borrows shares or coins for you to sell, of which you can buy back later, hopefully for a
profit. However, all you really need to know is that you can just click a button that says “Short”
53
or “Sell” on the trading platform you’re using and hit “buy” when you want out. Your broker will
handle all the behind the scenes borrowing/buying back stuff. When you exit a short position,
this is called “buying to cover,” aka buying to cover your loan.
Short Squeeze
This happens when an asset, stock, or coin makes a huge move to the upside that is caused by
a bunch of people who were shorting and betting that it will crash, only the asset keeps pumping
to the upside and all the shorts get stopped out or forced out. When shorts exit a position, this is
the equivalent to buying it, creating even more buying pressure and higher prices.
Spot Account
This is your basic “cash” account, meaning that if you buy a stock or crypto in a spot account
there is no leverage being used, or interest being paid on your position, because you own it.
This is similar to if you paid cash for your house vs. putting a down payment on the house and
taking out a loan on the rest. You have to pay that loan back. If you hear of anyone HODLing
they’re most definitely using spot and fully own the asset. Long term investors invest on spot so
they can hold for long periods of time and not pay interest, or be forced out of a position
because their loan has time limits.
Margin Account
A margin account is a spot account with the option to use “margin,” or small amounts of
leverage of 1-5x, or so, to trade bigger positions. You can also short in margin accounts, but the
process is much more difficult and is not typically automated.
Futures Account
Futures accounts are a different kind of leverage account where you’re trading contracts of a
particular asset. In these types of accounts, you can get leverage of 20-100x, which is extremely
risky. You also have to pay a small funding rate fee while your position is open. Futures
accounts are my preferred type of account to trade. They’re the most streamlined and efficient
way to both long and short with any asset for short to medium term hold times. You don’t have
to use leverage on futures either, you can simply change the settings to just 1x, which is
basically trading it like spot, yet now you can easily long and short more efficiently with the click
of a button. The danger here is that new overzealous traders see the ability to 50-100x leverage
with the fantasy of a lottery ticket trade and blow up their account in the first week.
Time Frames
Typically, when we look at a chart of an asset, we’re looking at a candle stick chart (I’ll explain
this later in this book.) More importantly, what we need to know is that there are different time
54
frames to look at in a chart. The concept sort of works like the movie Inception, a dream within a
dream. But with candle sticks, it’s a timeframe within a timeframe which tells a story within a
story.
Below is a weekly time frame chart. This means that for every candle displayed on the chart,
there is actually a full week of price action within that candle. If we break that down into a daily
chart (the most commonly used) we’d see the entire weeks price action displayed as seven
candles, for instance on $BTC below. We can break that daily chart down even further to a one
hour chart, which would be 24 one hour candles, and so on. So, as you can see, there’s always
a story within a story.
Weekly Chart. Each candle tells the story of one week of trading action.
Daily Chart. Each candle tells the story of one day of trading action.
55
Intraday One Hour Chart. Each candle tells the story of one hour of trading action.
It’s important to note that the longer the time frame the more power a signal or pattern will be. In
my early years I used to only swing trade. Then, when I got really deep into trading stocks, I
56
started to use more intraday charts and focused only on trading the stock market open for the
first 90 minutes. Today, I focus mostly on weekly and daily charts for swing trading. This allows
me to not be stuck to my computer all day. Most of my time is spent monitoring what’s
happening from my phone, which allows me a lot more flexibility and freedom.
Everything you’ll learn in this book can be applied to any time frame. All patterns and theories all
happen on their own individual timeline and time frame. My favorite time frames to use are
weekly, daily, four hour, two hour, one hour, and 15 minutes, but you can even break it down to
one second time frames if you want to.
57
Chapter 10: What’s a Trading System?
So, what exactly is a trading system?
Trading systems can vary wildly from trader to trader. There are countless different ways to
make money trading. Honestly, it can be easier to say what a trading system is not. A trading
system is not an automated system where you just make passive income using some bot and
don’t have to do anything. To my knowledge, no such system like that that exists and is
accessible to retail traders like me and you. Now with that said… what’s behind closed doors in
the quants department at Blackrock, Goldman Sachs, and other Hedge Funds, I have no idea.
They could very well have devised some quantitative algos with AI, that they spent 100s of
millions on, that could possibly find consistent profits in the markets that constantly have to be
updated and adapted to the markets ever changing environment.
The point is, when looking for a trading system…
Watch Out for Scam Systems or Get Rich Quick Passive
Income Schemes.
In recent years, as I expanded outside of stocks when I left America in 2016, I was approached
by some guys in the forex industry who showed me their trading bot. They asked, given my
sizable audience, if I wanted to partner with them for marketing. They showed me the results of
the bot for the past six months, which were wildly impressive. However, before agreeing to
anything, I still wanted to test this out myself first.
The problem was that they were using a system called the “Martin Gale” system. If used
correctly and you’re willing to accept losses and set a max % risk before entering, this is actually
a good strategy. So, a Hybrid Martin Gale system can work, but, most “automated trading bots”
you see being promoted out there are all Martin Gale bots, which DO NOT WORK.
The problem with this system was that there were no stop losses, other than an emergency
circuit breaker for taking a 50-75% loss on the ENTIRE account. A Martin Gale system
continually adds positions and increases the position size as the trade goes against you. So,
this strategy will always eventually work out in your favor, the problem is you need infinite
money to cover the losses/margin until the market eventually reverses and swings in your favor.
So, with a Martingale Bot, it would work great for, let's say, six months pull profits every day. But
then, one day, when the market swings heavily in one direction, and the bot continues to add
bigger positions on leverage until your loss is so big your account is eventually margin called
and the broker shuts you down and you lost everything, it’s no longer looking so good.
This is exactly what happened to the account I tested with the bot. It worked amazing for
months, just as they had shown me, until one week the market made a huge swing in one
58
direction with no reversal. I lost $72,000 in a day. I documented the whole thing on YouTube.
You can look it up. Funnily enough, Coffeezilla got wind of this story and decided to try and
throw me under the bus, calling me a Forex scammer lol. His videos are actually great, and I'm
a big fan of Coffee, despite being featured on his YouTube (lol).
I’d talked shit about forex and bots for years prior to this, but these guys showed me some
results and I was convinced to try it out. Was it an intentional scam? No. It was me testing a
trading bot with my own money and documenting it on YouTube. I lost it all and showed
everyone exactly what happened. But what I did do was uncover how these trading bots
worked, develop a deep understanding of the Martin Gale system, and show that what they
were selling was, just as I’d had figured, a pipe dream scam with no long-term success, unless
you had infinite money to cover the losses while the trade went against you.
If you see someone trying to sell you an automated trading bot system where you get to just sit
back and make passive income, this is a BS scam. Coffeezilla actually just released his latest
expose on Tradersdomain, which was basically a $500 million Ponzi scheme, claiming this
trading bot overseen by a master trader was making everyone massive profits. A shit load of
people lost millions with Tradersdomain. This was a similar situation I found myself in on this bot
that these guys showed me that was pulling huge consistent profits. I decided to test it with my
own money, and, of course, I lost it all. We all love the idea of easy money, but as we all
eventually find out time and time again, there's no such thing as easy money. If it sounds too
good to be true, it is every time.
So, a word of warning. Anyone trying to sell you the idea that making money trading is easy and
you don't have to do anything is BS. Run fast. It's a scam system Ponzi scheme and not a legit
trading system. If you want to do something on autopilot, call up my best friend Nick
Westendorf, He's a financial advisor at Morgan Stanley in San Diego. He’ll manage your money
at the firm, earn his commission, and hopefully make you a modest return over the long run
while you get to sit back and do something else and never think about it. He doesn't accept less
than $1 million accounts though, so do waste his fuckin time, please.
What is a Real Trading System?
Now that we know what we should try to avoid when it comes to trading systems, what exactly
is a trading system and how can we use it to make money for ourselves and build our wealth?
Quite simply, a trading system is a framework to follow for executing trades, using a set of tools,
such as technical analysis, supply and demand, trading indicators, chart patterns, macro
analysis, psychoanalysis, and, most importantly, a set of risk management and probability rules
that basically determine how much you’ll win or lose on any given trade within your framework.
Risk management and probabilities are the most crucial aspect of your trading system.
In the following chapter, I’m going to break down the basics of how to create a winning trading
system and all the tools you’ll will need to do so.
59
Ready?
Fuck yeah you are future wolf!
60
Chapter 11 - Technical Analysis is a Lie!
Pyschoanalytics is the Truth
Google Bard AI Definition: Technical Analysis
“Technical Analysis, aka “TA” for short, is the cornerstone of almost every trading system out
there. So, what is it and how can we use it? How can we use it in a unique and profitable way
when millions of other traders are also trying to use this same thing?
Technical analysis is the study of historical market data, including price and volume, in an
attempt to predict future price movements. Technical analysts believe that past price
movements can be used to identify trends and patterns that can be used to predict future price
movements.
Technical analysis is one of the two main schools of market analysis, the other being
fundamental analysis. Fundamental analysis focuses on a security's intrinsic value, which is
determined by factors such as the company's financial performance, management, and
competitive landscape.
Technical analysis, on the other hand, ignores these factors and focuses solely on price.”
What Technical Analysis is From My View “Psychoanalytics”
So, you might be wondering if this is some sort of BS way to predict the future of the markets.
Sounds fake, right? Well, in some senses you are right. And Google just lied to millions of
people who think they’re now going to use TA to “predict” the stock market, crypto, or forex.
TA is not predicting. Anyone who says they can and will predict what happens next using TA,
including Google’s Bard AI, is blowing smoke up your ass. Just by getting this false definition of
TA out of your head of “predicting” the future, you’re already a step ahead of the millions of
traders who are reading about TA and building this false belief of predicting what will happen
next.
I will teach you how to truly use TA so that you have an edge over all those sheep that try to
predict the market with TA.
I honestly hate when someone asks me what I think is going to happen next, or what the next
big stock or crypto is. This, unfortunately, is not how trading works. As much as I wish I was, I’m
not a fucking genie. I have zero fucking clue what's going to happen at any point in time, EVER.
61
I can’t see the future… but what I can see is the past through a particular lens I like to call
psychoanalytics.
In medical terms, psychoanalytics is the theory and study of treating mental conditions by
looking at human conscious/unconscious fear and emotions. That’s essentially what I’m doing
when I look at the markets with technical analysis. When we look at a chart such as Bitcoin for
the past five years, what exactly are we looking at? To an uneducated eye, it just looks like a
bunch of random moves up and down. But to a well-trained technical and psychoanalyst eye,
what we’re really looking at is a painting of human psychology and emotions, a real-life map of
fear and greed as it played out over time.
All past price action is the sum result of the entire neural network of all participants in the
markets, including institutional traders, hedge funds, quantitative algorithms, and retail traders,
just like you and me. So, we can literally see exactly how this neural network of human
emotions “reacted” time and time again under the conditions the market presented. This gives
us a tremendous amount of data to work with and anticipate how this same neural network of
traders may “react” under certain situations, i.e., if a similar situation to a past situation, arises
again.
Once we look at TA from the perspective of it being a painting and map of human psychology —
instead of random moves in price action and trend-lines drawn on the chart that will predict the
future — we can get a much better sense of how to manipulate all the sheep participating in the
markets, by anticipating how they will react in the future.
62
Once we grasp this concept, we now know with 100% certainty that the markets are certainly
not rigged. Yes, big money can surely control the narrative and influence price action, but we
know this, and we can study exactly how they did so in the past and use this knowledge to join
them the next time it happens. Again, the past is just the sum result of all market participants'
emotions being played out, not some sort of gamed system that doesn’t allow retail traders to
win.
Sheep lose because they can’t grasp the full scope of what's happening. They don’t understand
the psychoanalytics of the game. They think this is a game of drawing squiggly lines and
predicting the future, when, in reality, successful trading is a game of mind control and
manipulation.
So, with that knowledge now in hand, what we need to do in order to win in this environment is
figure out how to identify when similar situations we’ve seen in the past are arising again. Once
we do that, we want to set up a trading plan, based on what we know about technical analysis,
supply and demand, trading indicators, chart patterns, macro analysis, psychoanalytics, and,
most importantly, a set of risk management and probability rules in order to game the system in
our favor and win. (Yes, I will explain all those things too in the coming chapters!)
How and Why Does Technical Analysis Work?
In many cases, technical analysis works because of a phenomenon called “self-fulfilling
prophecy.” In a nutshell, this means that things happen because many people are expecting it to
happen. In TA, this cycle happens because we can see in the past that the neural network
reacted in a certain way in a particular situation. This allows us to anticipate some sort of
“similar” behavior that “could” happen again if a “similar situation” arises.
The four cycles of the self-fulfilling prophecy directly influence the pyschoanalytics of traders
every day based on the principles of beliefs, expectations, behavior, and results. This can be
seen in the diagram below.
63
This concept of self-fulling prophecy plays out time and time again in the markets, creating what
we call areas of support and resistance.
Support and Resistance aka Supply and Demand
Explained
Price action obviously goes up and down and up and down, sometimes for longer periods of
time than others. These movements are called trends and trend reversals. The important thing
that we need to do is identify and anticipate when these trend reversals occur. They occur when
there is a shift in supply and demand, where either buyers overtake sellers, or sellers overtake
buyers and a new trend is formed. These shifts in supply and demand typically occur in areas
that we call support and resistance.
Support = Demand = Buy Zone = More buyers than sellers here
Resistance = Supply = Sell Zone = More sellers than buyers here
Let's take a look at a Bitcoin chart and see the four principles of the self-fulfilling prophecy
playout during the massive bull market dip that took place before having one final run to $65k to
end the bull market.
64
So, in this illustration, we can see pyschoanaltyics and self-fulling prophecies both playing out.
Belief
A low was made around $30k on a pullback in “the past.” Now there is a “belief” according to TA
principles that, in the future, this could be a historically significant support zone because
demand overtook supply in this area and created an area that we can now call “support.”
Expectation
As the price nears this historical area again, in any given amount of time later, the neural
network of traders is “expecting” that there could be a “similar” shift where demand could
overtake supply in this now “support” area.
Behavior
Due to the expectation, people begin to act on their expectations. You typically see much higher
trading activity in this area as new buyers come in, anticipating that the demand is about to
overtake supply here. At the same time, sellers are diminished because they expect that this is
potentially where most of the panic selling will stop.
Result
Demand overtakes supply, aka buyers overpower sellers, and there is a reversal in the trend at
this “support area” back up to all-time highs of nearly 70k.
Sounds and looks easy, right?
65
Well unfortunately that's far from the truth. With TA, it’s very easy to look at something that
already happened and draw some lines to explain the story. However, when things are playing
out in real time the ending of the story is still unknown, volatility is high, and just because a level
appears to be “support” in the past does not mean it will hold. Often, it can break, and this is
where people get in trouble because they don’t set a stop loss, and their small loss soon turns
into a massive loss.
Now, let’s take a look at a resistance example.
It’s important to note that technical analysis is far from perfect. It never plays out the “exact”
same every time. Typically, it’s not smart to ever pinpoint an “exact number” as to where the
support and resistance are. I like to use support and resistance “zones” which allows a little
more flexibility in my analysis. If you try to pinpoint exact numbers, you’re trying to predict the
market way too much, and it’s simply not feasible.
People get in trouble when they don't have a stop loss, and a support level breaks down and
doesn’t hold and a huge wave of panic selling comes next. And if you hold through that you can
get destroyed. But after this occurs, that previous support level now becomes resistance and a
very difficult area for price to break through to the upside.
We can use the same Bitcoin chart example and just continue to drag the previous “support
zone” over to the right and see how significant this level plays out over time.
66
We can see that in May 2022 this level was tested again, and even broke down briefly before
regaining this level. You can imagine how many people got stopped out here, super frustrated,
and probably bought back in thinking “We’re gonna bounce now!” or “Oh man, thank God I
didn’t sell we bounced back!” Both those groups of people eventually got destroyed once the
support finally broke and $BTC dropped another 50% from here to $15k.
Now, as we go forward in the future, we can the same self-fulfilling prophecy and
psychoanalytics play out but now with resistance. Approximately $30,000 is now seen as the
resistance zone. If price action rallies back up to this level, we could expect a high probability
that supply could overtake demand somewhere around $30,000. We also have to note that it
will not be perfect. We can also adjust our zone based on new data. There was a low of $33,200
and high of $32,460 to take into account, as well. So, now we can basically expect the
“resistance zone” to be anywhere between $28,900 and $33,200.
It’s also extremely important to look at support and resistance in ranges or zones, and to adjust
the range based on new data highs and lows. That's what wolves do. It’s the sheep who try to
draw an exact line in the sand and get destroyed when they don’t predict the market. (And we
all know trying to predict the future is fucking stupid.
So, let’s see what happened next.
67
You can see here that it didn’t perfectly stop at $30k during the 2023 rally, but we could
anticipate that it would be a high probability that supply would overtake demand (sellers would
overtake buyers here at this resistance level) somewhere between the range of $28,900 and
$33,200, based on past neural network trading behavior. If the price started to break above that
range and hold up there, it may be wise to start seriously thinking this resistance level might not
hold and price would breakout higher.
In this case, priced halted at $31,100 in the “resistance zone” before making a nice pullback all
the way back to $25,000 “ish” support.
So, could we have anticipated and reacted to this whole scenario to make money? Yes, we
could have. Check this out. Below, I’m banking $40,000 and getting short on $BTC at $30,500.
The current open trade is $30k profit and I already locked in $20k. I ended up with about $40k
overall on this trade in this account. (I was short both $BTC and $ETH here as their setups were
similar.)
68
69
You can see the executions I made on our Hydrafunding platform short > $30k and then taking
profits all the way down to support at $25,000.
Now, if we look at the chart why was $25,000 a significant level to lock in gains? Is it wise to
maybe even buy the dip?
Take a look at this chart below.
70
The low of that massive liquidation sell off spike was just over $25k in May 2022 (far left on the
chart point #1) before we saw the final deadly sell off in June (#2). The price rallied back to this
zone around $25k in August in 2022 (#3) and then sold off hard, and then again in Feb 2023
before selling off hard again. So, $25k has now established itself as a historically significant
resistance zone as point #1 and #3 have indicated. We now know that moving forward $25k is
going to be a tough place to break through, and, if price retests this level, a bunch of sellers
could come in and reject it at $25k. We can see this happen at point #4, followed by a heavy sell
off (#5). It finally broke through $25k resistance in March 2023 (#6) and ran all the way up to
that historically powerful zone near $30k (#7), of which I shorted into.
Now, looking ahead for a historically significant profit target, it’s easy to see that $25k was a
zone that continuously showed heavy shifts in supply and demand, of which now is considered
support being that price is now above it. Price declined right into this $25k zone at point #8,
where I locked in profits and it bounced hard off this level.
Okay, so, right now, you’re either confused about what the hell I’m talking about, or you’re
thinking this may look pretty basic in the sense that, it looks like it would be easy to just draw
some horizontal zones in the future and trade them.
Unfortunately, it’s not that easy. I’m an expert and insanely good at telling people what I think is
about to happen based on the charts and where historical zones are and how I think the neural
network will react, etc. That’s the easy part. The hard part is the journey from entering the trade
to closing the trade and the entire shit show of news, mixed emotions, volatility, fakeouts, and
external opinions along the way shouting something different than what you’re expecting.
71
In addition, we need to address something very interesting in how all of these charts play out
based on TA and why it’s never perfect. The reason is that there are millions of traders out there
who are looking at the exact same chart, but with a different set of eyes, different tools, different
indicators, different levels of risk, different size accounts, and much more. What this means is
that nothing is universal, and nothing will ever be viewed the exact same way. Each trader’s
view and plan is almost as unique as their own fingerprint, making trading and TA wildly
unstable and volatile.
In this section, I was mostly trying to illustrate the self-fulfilling prophecy. I wanted to show you
how the four cycles of the self-fulfilling prophecy directly influence the pyschoanalytics of traders
every day, based on the principles of beliefs, expectations, behavior, and results, and exactly
how that translates on the charts based on support and resistance zones.
In the next chapter, we’ll go much deeper into the principles of how to identify and draw support
and resistance zones so that we can get a much better understanding of what the hell I was just
talking about.
72
Chapter 12 – A Deep Dive Into Classical
Technical Analysis From My Viewpoint
Since we all see things differently, we can’t really definitively say where support and resistance
actually is nor does support and resistance ever perfectly workout. If it did, trading would be
easy. But once you start trading, you’ll soon realize it’s not easy. It’s a profession, and only
professionals actually make money.
So, let me show you how I “relatively” view support and resistance and how I draw it.
Technical Analysis - Support & Resistance
As I never view a pinpoint number as the exact support or resistance, I typically find a significant
high and significant low within a range to use as a guide. In other words, I draw a zone. This can
typically be done by identifying the exhaustion candle that signified the top or the bottom of the
move, and then drawing your range based on the closing candle price and the peak high or low
of the extended wick.
Now, a candle stick is comprised of a body and wicks. Among that structure is the open price,
high of day, close price, and close of the day. The closing price and high or low of the wicks are
the most significant points of these structures. In this illustration below the left candle is an up,
or green, day. The right candle is a down, or red, day.
73
So, for me to draw a point of resistance — an area where price would top out — I would need to
identify the latest peak in price action that saw a shift from demand to supply. Then I would find
the closing price of the candle and the highest price of the wick of the reversal candle. This
would be my high and low range to draw and extend to the right of the chart to use as a guide
going forward.
The same thing goes for support. You take the closing price of the lowest candle and the lowest
wick price. Now, you have a high and low range “roughly” to draw support and extend to the
right of the chart.
74
As an example, let’s look at the crypto coin $LINK. As you can see, the price made a huge drop
followed by a bounce, followed by another big drop. Now, based on this, we have a high pivot
and a low pivot. We can look at the high pivot candle and the low pivot candle to draw a range
for both support and resistance going forward. Let’s see how that looks.
75
Now, let’s fast forward and see how these levels played out over the coming months.
Interesting to see how significant these ranges can become going forward yah? This is all based
on the four phases of the self-fulfilling prophecy. Again, it’s far from perfect. History never
repeats itself, but it often rhymes.
Next, let’s look at the Bitcoin chart again and see how I drew my areas of support and
resistance based on what you just learned. Notice how I identify the top of the move or the
bottom of the move. I take the closing price plus the high/low of the wick and extend that range
to the right of the chart. This is now my area of support and resistance as a baseline.
Now, this can get very sloppy, and much more unclear, when things get super volatile. We also
have to factor in the highs and lows of candle wicks that are nearby. These are factored in as
“curve balls” that could confuse price action and traders around these significant areas of
support and resistance. If I see a curveball near a top of wick range, I may just extend my range
all the way to the curveball high or low, as seen in the below example.
76
Let’s take another look at the above chart. Notice how the price peaked at $31,100 in April
2023? We can look all the way back to our original low pivot and support area we drew from all
the back in January of 2021, and see how this level continued to stay significant as strong
resistance now mid-way through 2023, while also factoring in the highs and lows of super
volatile moments, aka “curve balls.”
77
To build this muscle for reading charts, I’d suggest looking at some of your favorite crypto,
stocks, or forex and start identifying the significant zones that played out quite well over the
course of the history of the chart. Then start drawing the most significant recent support and
resistance zones and extend them into the future of the chart and see how well they play out.
Again, this is not “predicting” the future. It’s simply creating a framework for anticipating how the
neural network of traders “may react” if the price goes back into that area of support or
resistance.
And remember, TA generally works due to the psychological mind game of the self-fulfilling
prophecy. But not always…
78
It’s the ones who try to predict what will happen that get in trouble. When their prediction is
wrong, they’re so convicted to their prediction that they never adapt to what actually happens,
and they get destroyed as the market goes against them.
The key factor in trading is to never pick a side and think you have to stay there. For every trade
there are two scenarios that could play out: A or B. If A happens, I’ll take profit at X price. If B
happens, I’ll stop out for a small loss at Y price. Most traders (sheep) only think about the
winning side of the trade. Wolves, on the other hand, only care about one thing: How can I
protect myself if this trade doesn’t go my way? In fact, let’s just go ahead and expect that we’re
going to be WRONG on every trade and mostly just focus on protecting ourselves based on
that. (More on this topic later on risk management.)
How Strong is Support and Resistance? And When Does
It Become Less Relevant?
Support and resistance can vary in strength. For instance, if you see an epic run on an asset
that goes up really fast, stops at a level, and then drops fast off that level, that level where it
peaked is quite significant for the future. Typically, the first retest of that level will be the highest
probability that a reversal will happen off that level, which would be what we call a “double top”
or “double bottom,” depending on if its support or resistance.
The framework for drawing support or resistance is connecting two or more similar levels to
each other and that can now be considered support or resistance. However, every time after the
first two or three retests at this level of support or resistance, that wall becomes weaker. As this
happens, the probability of a breakout above or below that level becomes more likely. Think
about taking a sledgehammer to a brick wall. Every time you smash the hammer into the wall,
79
the weaker it becomes and the higher the probability that the next swing will take the wall down
entirely. In theory, this is exactly how support and resistance behave most of the time.
When resistance is broken this is called a “breakout.”
When support is broken this is called a “breakdown.”
80
Now, let’s look again at the $BTC chart and see how support and resistance played out.
The resistance broke out on its third attempt at the ~$25k zone, while the support broke down at
~$18k zone on the fifth attempt.
Neither of these situations were very predictable. The resistance breakout > $25,000 on the top
of the chart occurred after a huge fast move back into resistance, starting with a fakeout
“curveball wick” that didn't hold > $25k on the closing price. Then, triggered by the news, it
spiked hard and fast again. I believe it was inflation data, if I recall correctly. This setup was not
predictable. It was very volatile, aka not easy to trade if you were trying to trade the breakout or
breakdown.
The support, at the bottom of the chart, took five tests to break down around the $18k level. Yet,
it only broke down momentarily before eventually seeing a huge breakout to the upside and run
> 100%. Both were highly volatile situations that were not easy to foresee or react to in realtime.
My point is that, while we drew some lines here and evaluated the past after it already
happened, as this plays out in real-time we don’t know how many times the support or
resistance will test before it breaks, or if it ever even does. That first drop on and break down at
#5 was triggered by the collapse of the broker FTX, where price swiftly dropped from $21k to
$16k. The huge breakout, or resistance, at #3 was triggered by CPI inflation data, as well as a
bunch of rumors that Binance was printing BUSD to buy Bitcoin, because they knew full well the
SEC was about to Ban BUSD in the USA, and they were swapping out of as much $BUSD as
81
they could before it was essentially banned by its US partner who mints BUSD, a company
called PAXOS.
So, as you can see, there were a lot of moving parts that were going on here that affect one's
ability to maintain emotional stability during highly volatile times of uncertainty. TA can serve as
a guide to identifying the higher probability scenario that can potentially happen, but it’s never
perfect and certainly not predictable. It’s simply a guide to make more informed decisions and
help you set up a trading plan, with a good risk/reward, given that you fully acknowledge that
you could be wrong on every trade that you enter.
The biggest mistake traders make is expecting these lines will predict the future, which they
don’t, and then they go into full meltdown mode because they didn’t prepare themselves to be
on the wrong side of the trade when they find themselves there.
When looking at support and resistance, the most impactful and largest reversals off support
and resistance usually happen on the second and third retest of the first established peak.
Every test beyond that the probability of a breakout or breakdown increases, and the chance of
a STRONG reversal off this area decreases.
To summarize, if you’re looking to trade a reversal off support or resistance, its best to do it on
the first or second test of that level. Once it’s the third test and beyond, the probability becomes
more in favor of a breakout or breakdown trade.
Technical Analysis - Trend Lines
Now, let's talk about trends. These are quite a different beast. In the last section, we talked
about support and resistance on horizontal planes and zones based on a high and low range. In
this section, we’ll look at support and resistance from the perspective of slopes and angles.
Which, yes, can be confusing because now you might be wondering: Which one is more
important?
First, let me explain how to draw trend lines and then we’ll look at some examples of trend lines
on $BTC and $ETH and show that both horizontal support/resistance and trendline support/
resistance can be very significant. We can even create “Super Support” or “Super Resistance”
when we use them together.
How To Draw Trend Line Support
Step 1
Price must make a new low pivot and then bounce.
Step 2
82
After the bounce, price makes a new higher high. Price then makes its first pullback yet creates
a higher low pivot. This means that it didn’t retest the previously low support before it started to
bounce again.
Step 3
Now that a higher low “pivot” has been made, you can connect the two low pivots together with
an “ascending” trend line. With this, we have a potential new trend in place. This means that
horizontal support is becoming less relevant and a new “trend support” or “bull trend” may be
forming.
Step 4
Now that we have this new trendline drawn, we can assume there “could be” a higher probability
that price action will bounce off this “trendline support” area. I say “could be” because there is
just an increased probability it will happen. This does not mean it will happen, and you must
always prepare for it not to happen.
Take a look at the trend example below. This again works because of self-fulfilling prophecies
and the neural network of traders reacting to significant levels of support and resistance.
Now, let’s look at this $ETH trend line support example below. Crazy how this plays out right?
It's not predicting. This is simply a map of human psychology and emotions playing out.
83
How To Draw Trend Line Resistance
Step 1
Price must make a new pivot and then pullback.
Step 2
After the first pullback, the price rallies making a new higher low, thus creating a new pivot.
Price then makes its first pullback to a new lower low.
Step 3
Now that a lower high “pivot” has been made you can now connect the two pivots together with
a trend line. This gives us a potential new “descending” trend in place. This means that
horizontal support is becoming less relevant and a new “trend resistance” or “bear trend” may
be forming.
Step 4
Now that we have this new trend line drawn, we can assume there “could be” a higher
probability that price action will pullback off this “trend line resistance” area. I say “could be”
because there is just an increased probability it will happen. It does not mean it will happen, and
you must always prepare for it not to happen.
Take a look at this bearish trend example below.
84
Now, let’s look at some examples on an $ETH chart. We can digest a lot of descending
resistance trend lines on this chart that played out. We can even see the second descending
trend line resistance breakout to the upside on the third retest. Remember the sledgehammer
analogy. Every time after the second and third retests, the support or resistance becomes
weaker and a breakout or breakdown “may” occur.
85
We also have to be conscious of fakeouts and premature trend lines. As I've said many times,
it’s easy to just draw the lines that make the most sense “after the fact.” It becomes way more
difficult when things are playing out in real-time, and volatility is heavy.
Let's digest this chart and see how we could have been fooled several times on premature trend
lines.
As you can see, TA is far from perfect. It loves to play mind games with you before true patterns
really come into fruition. The only way to really combat this is to be very patient in your trading.
Most people chase and force trades. They always bet too big and way too early, which results in
them getting shaken out before the actual pattern and move plays out. Wolves, on the other
hand, have the patience and discipline to wait for the absolute setups to come to them.
The longer it takes for a pattern to play out the more significant it is. New trends and significant
support and resistance levels don’t happen overnight or in just a few days. They take time to
form up and come into the light. Always try to be more patient than not. Failure is often not the
result of being wrong in your idea, rather failure is often the result of being too early and having
FOMO, so you jump the gun before you get a clear view of the full picture that’s being painted
on the chart by the neural network of traders. You’re better off missing trade opportunities by
having too much patience and make nothing, as opposed to consistently FOMOing in too early
and experiencing in a bunch of losses.
So, now that we know how to draw trend line support and resistance, you might be wondering:
Which should we focus on? Horizontal support and resistance or trend line support and
resistance?
86
There is no one size fits all method to using and implementing technical analysis. There are only
“different types of markets” and “what tools should you use in that type of market.” In a sideways
market, horizontal support and resistance can become more significant. In a trending market,
trend line support and resistance, based on slopes and angles, can become more significant.
However, the most powerful way to use technical analysis is to combine both of these types of
support and resistances together to find areas of what is called “confluence.”
Confluence is defined as ‘the junction of two rivers, especially rivers of approximately equal
width.” For example, “Here at the confluence of the Laramie and North Platte Rivers…" In other
words, if you combine two rivers together you get a very powerful “super river.”
The same thing happens when two types of support or resistance collide. If the horizontal
support level is met with trend line support, you now have a confluence of multiple support
levels signaling strength. This means that the probability is higher that there will be a shift in
supply and demand at this level, and support is more likely to hold than if it was just horizontal
support alone.
Let’s look at $BTC recent price action and see how horizontal support plus trend line support
created a “super support” level and a huge bounce on $BTC off this level. Remember, this is like
two rivers combining making it a super river. This is the perfect example of “confluence” in
trading.
87
Yes, this played out perfectly. But remember, only a fool would think this was a guarantee.
Confluence only increases the probability that it “may happen.” It doesn’t mean that it is going
to.
Looking at the chart above, we can see that horizontal support was now clearly formed at
~$25k. Along with the ascending support trend line, this created a super support (confluence)
when the trend line finally caught up to price action at this level. This is the same self-fulfilling
prophecy playing out.
1. The Past. Horizontal Support at $25k and ascending trend line support approaching
$25k.
2. Belief. Neural network of traders think $25k is a historically influential level based on the
data.
3. Expectation. If price drops back into $25k at the same time that the trend line support
reaches $25k, selling pressure should stop and buying pressure should increase.
4. Behavior. I personally covered my shorts here at $25k “super support” and locked in my
profits while simultaneously buying up some alt coins that were damaged by this big
$BTC sell off.
5. Result. $BTC and alt coins made a massive pump in a short period off this super
support area right back into the resistance level around $30k and the altcoins I bought
pumped 15-30%.
Technical Analysis - Moving Averages
We aren’t quite done yet. There are still more ways to identify trend support and resistance.
While we can manually draw trend lines, and they can often work extremely well, there is a big
flaw with them. That flaw is human error, because it’s all based on how each individual is
viewing that chart, and one trader might draw a trend line slightly differently than the next trader.
We can somewhat combat this human error and confusion by using what are called moving
averages. These are mathematical based trends that cannot be subject to human error when
they’re drawn. While this does make them perfectly drawn on the chart. It DOES NOT mean that
they are perfect indicators of trend support and resistance.
I use both trend lines and moving averages, but I usually prefer to use my hand drawn support
and resistance over anything else based on what I’m seeing/interpreting. Let’s look at some
moving average examples and how they work.
The two main types of moving averages are simple moving averages (SMA) and exponential
moving averages (EMA). They work by taking a certain period of days, calculating the average
price of that said period of days, and drawing that number on the chart for each day. The only
difference is that the exponential moving average puts more influence on the most recent
trading days of price action.
88
So, let’s look both a 50-day EMA and a 50-day SMA, which would be called/seen as 50EMA or
50SMA on $BTC.
Simple Moving Average (SMA)
For the 50SMA, you would take the closing price of $BTC over the last 50 days, add them all
up, and then divide it by 50. This gives you the average closing price of the last 50 days.
Whatever that number is, which is $27,705 as of today, it would plot that number on the chart as
a line. As time progresses, this forms a line on the chart that can be considered longer term
support or resistance, depending on if price is above or below it. Moving averages can also be a
gauge as to where price is in a bull trend or bear trend, if price is above or below the moving
average.
Exponential Moving Average (EMA)
For the EMA, I’m not going to go into the math because it’s confusing. (And who fucking cares
about math?) There isn’t a single charting program out there that makes you calculate this. All
you need to know is that it puts more weight on the most recent trading days that are being
calculated, whereas the SMA will consider the closing price of 49 days ago just as significant as
today. The EMA will shift the influence in favor of the most recent closing prices that are being
calculated.
89
So, which should we use? It really comes down to personal preference, but I’ll give some
personal insights on how I use moving averages. For longer-term trends, I like to use the SMA,
and for short-term trends, I like to use the EMA.
Two of the most impactful long-term moving averages are the 50SMA and 200SMA. For
instance, a key indicator for the end of the Bitcoin bull run, in my opinion, was the long standing
breakdown of the 50SMA, which broke down twice. The first breakdown caused a massive 50%
sell off. The Second caused the official -80%+ $BTC crash and bear market after the all-time
high breakout failed in the $60ks.
90
The 200SMA is not something I typically pay too much attention too. There is also the infamous
“death cross” and “golden cross,” which is when the 50SMA crosses above or below the
200SMA. The bullish signal is called the “golden cross,” when the 50SMA crosses from below to
above the 200SMA. The bearish signal is called the “death cross,” when the 50SMA crosses
from above to below the 200SMA.
91
You can see it can be quite significantly late in its signal. And it appears most relevant as a
bullish indictor after a long standing multi-year bearish trend. In a sideway market, where it’s
crossing above and below frequently, it becomes an irrelevant signal. It should only be factored
in if it’s a signal that has been forming for minimum one year or more.
For short term trends, there have been three short term EMA’s that I’ve used sporadically in my
career. These are the 9EMA, 13EMA, and 20EMA. The 13EMA was my bread and butter for my
early years trading stocks. Although, as time has passed, I’ve strayed from it slightly as these
EMAs are still just relative, and different assets can follow different time frames of EMAs.
As I’ve found quite a bit of inconsistency trying to pick which EMA to use, I tried something
different. Just as we know trying to draw a single horizontal support line at a very specific price
can be difficult, often it’s better to draw a high low range instead, which gives us some breathing
room to work with.
I created my own custom EMA indicator called DegenrTrend, which is an EMA range that
typically finds short term trends that can be followed and is a good indication when a short-term
trend is reversing, if price breaks above or below this EMA range.
It’s important to note that when you put an EMA, or DegenrTrend, on a chart, you’ll be able to
see, quite quickly, whether or not the asset is reacting to this moving average. Ideally, you want
to see price action bounce off the EMA you are using consistently two to four times before
eventually breaking through it and indicating a trend reversal.
92
Here is an example of DegenrTrend on $XRP. It’s not perfect during SUPER volatile swings. But
when price starts trending, you can see how this has shown to be beneficial as a guide to
seeing if price is either bull or bear. You can see price continually test DegenrTrend and bounce
off it it, continuing the trend, until it eventually breaks and the trend reverses.
If price just keeps crossing above and below the EMA, and not showing a clear trend, then your
time frame is irrelevant and your EMA shouldn’t be used, or you need to adjust the time period
to find which period the particular asset is following.
One solution is to check any given asset, throw an EMA on it, and customize the time frame
period until you’ve identified the perfect time frame for this asset. But you also need to note that
while that perfect EMA time frame might work for six months, the market environment could shift
and the for the next six months it might be a different time period that price follows.
Building on this, let’s look at $BTC right now and find out what’s working as of late. I’m going to
pick two time periods: a low time period and a high time period. I found that in this latest bear
trend a range between the 32EMA and 90EMA “appears” to be close to the lows and highs of
the trend range, with some super volatile spikes above/below on occasion.
93
This isn’t a perfect strategy and I’ve never heard of anyone using a 32EMA (lol), but welcome to
TA and trading in general. There is no such thing as perfect. There are only guides that help you
make an educated guess on what the highest probability next outcome is.
Moving averages can certainly be used as guides, but they’re are not on the top of my priority
list when I make trading decisions. I use them as a third in line confluence to back up my trading
plans that I’ve already drawn with horizontal and trend line support and resistance zones.
To add a moving average to the chart on Tradingview its quite simple:
1. Click indicators
2. Search “moving average exponential” or “moving average simple”
3. Click the settings button on the left side of the chart next to “EMA”
4. Change the “length” # to your desired time period for your EMA
5. All the other settings do not need to be changed, other than your color choice under
style
94
Technical Analysis - Trading Indicators
The next thing we need to talk about is the infamous “trading indicators.” Most noob traders
think these are going to be that secret sauce that finally makes them profitable. But, let me tell
you, this isn’t the case.
The most important, impactful, and truthful indicator that we can look at, is, and always has
been, “price” on the chart, followed by identifying supply and demand zones that we can react
too. But just as we can look for confluences on the chart, by combining both horizontal support
and trend line support to create “super support,” we can also add in even more confluences to
further increase the strength of the probability that the trade we’re are looking at could work out
in our favor.
That’s where indicators come in handy. They can increase our confidence and the probability of
a winning trade working in our favor if they’re signaling the same thing that our price chart and
horizontal + trend line support and resistance areas are signaling that could create a “SUPER
TRADE.”
95
There two types of indicators that I typically use: oscillators and momentum indicators. Both
essentially are designed to tell you when an asset is either overbought (traders are getting
greedy and FOMO chasing) or oversold (traders are panic selling in fear).
I also want to mention that trading indicators “lag” price in their signal. Typically, the signal
always happens first on the “price chart” and then that “message” or “signal” from you indicator
shows up on the chart after price already moves. So, again, price is always the most important
indicator to use. What indicators do is they help us verify and anticipate that prices are coming
into a level where a “reversal” could be upon the horizon. This helps us get ready to anticipate,
react, and place a trade if these indicators are a confluence to what we see on the price chart.
Picking your indicators is based on personal choice and what you find blends well with your
trading behavior and strategy. When I first started trading, I used the two most well-known
indicators out there: the RSI and MACD. Both can provide a good indication of overbought,
oversold, and momentum conditions.
The issue with these two indicators is that they’re probably the most used out there among
traders. This means that everyone is looking at the same thing and coming up with the same
idea. In trading, you need what is called an “edge.” An edge basically means you have a secret
card up your sleeve that not many know about. When you have an “edge” over another trader
you’re able to advantage of them with something they don’t know. Essentially, you’re
manipulating their lack of knowledge.
We also need to take into consideration what the “masses” are thinking, and we need to
anticipate how they’ll react in situations of fear and greed, and exploit their over emotional and
irrational behavior so that we can profit.
With that said, I created two custom indictors, which I’ve found work better than RSI and MACD.
They’re not perfect, but they certainly can be a secret card up your sleeve in trading and add
confluence to what you’re seeing on the price chart. The indicators are now available for you to
use at degenr8.io
Let’s first look at RSI and MACD. Both are free and can be added to your chart on any charting
platform you are using.
RSI
The relative strength index (RSI) provides short-term buy and sell signals that measure the
velocity and magnitude of price movements. When RSI is < 30, this is an oversold territory and
can indicate reversal buy signals. When RSI is > 70, this is an overbought territory and can
indicate reversal sell signals.
96
Let’s look at RSI on the $BTC chart when the indicator was > 70 or < 30. The signals are
somewhat hit or miss. Sometimes it indicated this was the short-term bottom or top. Other times
it was a near term bottom or top and then just kept dropping lower or higher. Not very reliable.
I have drawn vertical lines on the chart showing when RSI was > 70 or < 30. You can see how
sometimes this translated into a top or bottom reversal.
A way to find more reliable signals with RSI is to look for a divergence in the indicator and price.
Typically, when price makes a new recent high, RSI makes a new recent high along with it. If
price goes even higher a few weeks later then RSI “should” also make a higher high. This would
be typical RSI behavior.
But what happens if price makes a new recent high but RSI does not? This is what we call a
divergence on the chart. Typically, this means that while price is making a new high, it’s actually
running out of steam and this rally could be very short lived before a big reversal comes into
play.
Divergence signals are much more powerful than just and RSI going >70. Divergence can be
defined as “the point where two things split off from each other.” In trading, this happens when
an indicator is no longer following along with price. Typically, if a an asset makes a new high
over the last recent high, an indicator will also have made a new high over the recent high as
well. That’s normal behavior. But when the indicator doesn’t, this is something to take into
serious consideration.
97
Bearish Divergence Signal Example
Let’s look at an example of bearish divergence, meaning that a “top reversal” is coming. When
this happens, price makes a new higher high, but the indicator you’re using makes a lower high,
indicating the rally could be coming to an end and a reversal could be coming soon.
Bullish Divergence Signal Example
Here price makes a new lower low, but the indicator you’re using makes a higher low, meaning
this sell off is running out of energy and a swift bullish reversal could be coming soon.
98
Let’s look at the bearish divergence signal on RSI when $BTC made its all-time high and then
crashed and destroyed all the irrational moon boys out there (lol). $BTC made a high on Oct
2020, along with RSI ripping to new recent highs. After a short-term pullback, $BTC ripped
again to all-time highs in Nov 2020. Yet, this time, rather than RSI agreeing with this momentum
and making a new high along with prices new high, RSI created a new lower high. In fact, it
didn’t even reach > the 70 “sell” area within RSI’s standard “sell signal” territory. This created a
huge “bearish divergence” in the momentum of this move. Once price failed to hold above the
October high, it was a clear sell signal and $BTC crashed nearly 80%.
99
So, RSI > 70 or < 30 is not a very clear buy or sell signal as price can easily continue higher and
lower on both sides of bull or bear moves. Divergences will be the most powerful signals. Take a
look at any chart right now with the RSI and try to identify divergences that eventually worked in
favor of a reversal. See what worked better? Single RSI signals or when there was a divergence
in price and the RSI?
MACD
MACD is short for moving average convergence divergence. Its purpose is to measure changes
in the strength, direction, momentum, and duration of a trend.
The MACD is more so a momentum shift indicator. It doesn’t necessarily have an overbought, or
oversold territory, which I find a bit troublesome. This is also why I created my own version. That
said, MACD can still create some powerful divergence signals as well as be a good indicator of
whether momentum is currently in favor of the bulls or bears.
The MACD has two moving averages and a histogram. When the moving averages make a
bullish cross to the upside, the histogram will be > 0. This indicates bulls could be going on a
run and taking over for a short period of time. It’s the same on the other side. When there’s a
bearish cross of the moving averages, the histogram shifts to < 0 and the bears could begin a
new short-term run.
Look at the $BTC chart below. Sometimes a bullish or bearish cross was the beginning of some
big moves and sometimes it wasn’t. You’ll also notice that there aren’t any indications of MACD
being in extreme high or low levels, albeit, it did alert you on some pretty big moves on several
100
occasions. I drew vertical lines on the chart showing where the bullish and bearish crosses
happened.
Now let’s look at some divergences on MACD and price. We can see two bearish divergences
playing out here during a bull run that both led to big price crashes, followed by a bullish
divergence that led to price blowing up to the upside.
101
The most important thing here is that you can’t just trade off indictor signals. It’s simply not a
working strategy. If there was a perfect indicator out there it wouldn't be available to use.
Someone would be making billions of dollars in the shadows, and you wouldn’t ever know it
even existed because there’d be no reason for them to share it. And if they did share it, it would
eventually stop working once enough people started to use it. Not everyone can win in trading.
The majority of people have to lose in order for a small number to win. That’s just life in general.
Indicators are meant to verify, validate, and add confluence to the support and resistance zones
you’re trading off of on the chart, nothing more. That said, they can certainly add confidence to
your trading decisions and be a game changer in your overall performance if you know how to
correctly use them alongside other TA principles.
So, now that we've looked into the two most popular indicators out there, we can take a look at
my custom indicators.
FEAR & GREED INDICATOR - My Alternative to RSI
You can access The Fear & Greed indicator at degenr8.io
So, why do I use this over RSI?
For one, there are MILLIONS of traders using this same RSI to make decisions every day
because its free and is one of the most well-known indicators of all time. So, I don’t trust it by
any means. There is no edge in using the RSI if everyone is using it. So, I identified its
weaknesses and created my own indicator. As of right now my indicator is not even public. I’ve
been using it on my own for about a year, but it will be available for a monthly fee soon if you
wish to use it. I will never make it free because then it will lose its value. So, my only two options
is to hoard this for myself, or charge a fee so that only my inner circle has access to it, making
sure become irrelevant like RSI has.
So, how is mine better than RSI?
1. My RSI alternative gives me more and earlier signals than RSI.
2. My RSI alternative is easier to follow and has more agreements with support and
resistance on price.
3. My RSI alternative shows me divergences when RSI does not even recognize it.
Let’s look at $BTC using my fear and greed custom indicator vs. RSI.
Instance 1
Here we can see $BTC price make a big dump in August 2022. Fear and Greed picked up a
divergence just as it neared a descending resistance trend line. This created a confluence for us
as it was at both trend line resistance and creating a bearish divergence on Fear and Greed.
Then Price dumped hard, NOICEEE signal.
102
If we look at RSI? It wasn’t even close to overbought (sell) territory, and it didn’t even recognize
a divergence. The price DUMPED. RSI was no help here, but Fear and Greed was.
Instance 2
We can see price pumping again right back into our descending resistance trend line along with
horizontal resistance as well from previous pivots from previous pullback lows. So, now we have
“super resistance.” What about RSI? Does it agree to sell here? It does not. It’s not > 70. Fear
and Greed, on the other hand, gives us an overbought territory sell signal, adding confluence to
the chart being at a resistance level before it dumped again.
103
Instance 3
Price has broken up above the descending trend line as well as held strong at horizontal
support, thus causing a rally after the trend line breakout. Fear and Greed spiked into sell
territory and then picked up a bearish divergence when price jumped to a second new high,
while RSI saw no divergence and never entered sell territory > 70. Price then completely
dumped from here.
104
Instance 3.5
Here’s a bonus instanced. While writing this, I noticed one more thing that I want to show you,
just because it’s so clear how much better Fear and Greed is over RSI. When the market hit its
all-time low for the year in Nov 2022, RSI also made a new recent low over the last dip which
agreed with price making new lows suggesting selling was still very strong. On the other hand,
Fear and Greed started to pick up a bullish divergence signal as it made a higher low instead,
indicating momentum for sellers was drying up and a reversal could soon be in play, of which
that was the bottom of the 2022 bear market. RSI was no help here.
Instance 4
In March and April of 2023, $BTC when on an epic bender where, somehow, RSI never even
broke into sell territory on a massive double pump rally (lol). Then when $BTC made a new high
on the second pump, RSI still did not enter into sell territory, nor did it recognize any divergence.
However, Fear and Greed had both sell signals as well as a clear divergence. That on top of
long-term resistance around $30k that we discussed in the chapters on support and resistance
zones, gave us confluence to enter a trade short in this range around $30k, before it dumped
back to $25k support where we locked in gains.
105
Those are just some examples of why I stopped using RSI and created my own custom
indicator based on 20 years of trading experience. RSI is simply saturated. Everyone’s using it.
Thought, I will say, I honestly don’t think any pros use it, because they know it’s a rookie’s
indicator. But many new traders use it and, when they do, it’s not helping them win. I can
promise you that. Again, as I write this, my indicators are not public, though maybe they will be
by the time you’re reading this. Either way, you can decide for yourself if what I displayed here
would be useful for your trading style or not.
Degenrshift - The Ultimate Momentum Shift Indicator
You can access degenrshift at degenr8.io :)
I created this indicator to compliment my Fear and Greed indicators. The reason we use
multiple indicators is that sometimes one indicator can pick up something the other doesn’t. The
Fear and Greed indicator is focused on picking up short term signals, whereas Degenrshift will
pick up signals on longer time frames, which can trigger some MAJOR tops and bottoms before
a major “SHIFT” happens in the markets. This is why I called it DegenrShift. Degenr is short for
Degenerate, aka my indicators are meant to help all the degenerate idiot traders out there who
don’t know what they’re doing and hopefully help them make more rational and less
“degenerate” trading decisions. I don’t use just Degenrshift or just Fear and Greed. I use them
both together. Sometimes they don’t agree with each-other, but if they agree then it can
increase my confidence in the trade as we now have confluence on both indicators.
Why do I prefer Degenrshift > MACD?
106
1. My MACD alternative gives me clear overbought and oversold territories and Buy/Sell
Signals.
2. My MACD alternative automatically alerts/draws the divergences, while not perfect, on
the chart, so that I don’t have to do it manually.
So, let’s look at the $BTC chart with both Fear and Greed and Degenrshift on it, and see how
they complement each other. Fear and Greed will go into overbought and oversold territory
much more often than Degenrshift. So, when Degenrshift goes into overbought or oversold
territory, we know the market is typically now at extreme highs or lows. It’s important to note that
sometimes both these indicators don’t agree with each other, as in one can show a divergence
while the other does not. But it still may be giving a single buy or sell signal while the other
shows the divergence.
For instance:
1. If Fear and Greed shows a divergence and Degenrshift does not, but Degenrshift is
giving a buy/sell signal, this can still be powerful.
2. If Degenrshift is showing a divergence but Fear and Greed does not, but Degenrshift
giving a buy/sell signal in conjunction, this can be powerful.
3. If Both Degenrshift and Fear and Greed are showing divergences at the same time, this
can be super powerful.
Now, let’s look at $BTC to show you what I mean.
107
You can see many examples here where they complement each other. One is picking up a
divergence while the other is not, but it’s still in overbought or oversold territory. We can also
see how powerful it is when they’re both in divergence together, as that marked the bottom of
the 2022 bear market which was followed up by a massive pump on $BTC.
Again, I want to be clear, I never make trading decisions based on indicators alone. I always
look at price action first, and then use these as validators of confluence to increase my
confidence in my trade. But as you can clearly see, these are some secret tricks up my sleeve
that can give me an edge over other traders. This is why I haven’t even released it yet and am
using it for my own greedy gains. They’re not 100% fine-tuned yet. I still have some tweaks to
make, but I will be releasing it soon so that my fellow wolves can use them within our
community. But, of course, they won’t be free. So, don’t bitch about it. If you don’t want them,
don’t buy them. If you want them? Then pay up. It took me nearly 20 years of trading to have
the knowledge to understand how to create my own indicators. Plus, it’s better for everyone
using these that the smallest amount of people use them, aloowing us to maintain an edge over
other traders out there. I’ve said it before and I’ll say it again, life is not fair. Traders, businesses,
and athletes win by outworking the competition and taking advantage of and exploiting their
weaknesses. This isn’t a charity sport. It's cut-throat, kill or be killed trading. The more people
using the same logic in trading the less of an edge they have and the less consistent that
strategy or tool becomes over time. So, do you still want to use the same popular indicators all
the other millions of losing trader noobs out there are using?
Technical Analysis - Chart Patterns
108
Now that we have a grasp on how to use horizontal support and resistance, trend lines, and
trading indicators in our trading analysis, we need to start implementing pattern recognition into
our mix of the way we view the markets and how we find trade opportunities.
There are a bunch of generic trading patterns that have formed up consistently across the
markets over decades, and they continue to react similarly over and over again. There’s a
saying that goes, “History never repeats itself, but it often rhymes.” This is exactly how chart
patterns work in technical analysis. They are similar, but never EXACTLY the same. This
creates the “difficulty” aspect of trading them.
There is also the similar notion that if everyone is trying to trade this same pattern the same
way, then how is it ever going to work? That’s a great question. Just as I explained that if
everyone is using the same indicator then it’s probably going to become less relevant and
become more inconsistent in producing good signals because you have no edge over the next
guy, this can also be true when it comes to chart patterns. I’ll discuss more on this later, but for
now, let’s just take a look at what these patterns are and how they work in theory. Then we’ll
show some examples of them in practice.
So, let’s get into what I believe are the most relevant trading patterns to be learned in technical
analysis.
Ascending Triangle - The King of Bull Market Breakout Patterns
(Bullish)
Ascending triangles are some of the most powerful and high reward to risk patterns out there,
and they typically work the best in bull markets. Remember, a breakout is when resistance is
broken to the upside. For you to make money price needs to make a new big run beyond the
resistance level. In bull markets, this can be a very consistently working pattern, but in a bear
market, trading breakouts usually just leads to a multitude of losses. This is because those
breakouts are actually all fakeouts, and they no longer work in this trading environment. So,
consider this your strong reminder that if we are not in a hot market, trade this pattern at your
own risk. It’s not nearly as reliable. This is a bull market strategy.
Here is a three phase illustration on how this pattern typically plays out:
Phase 1
Phase one starts with a rally, typically on heavy volume, but not always. This creates the first
peak resistance.
Phase 2
In phase two, price pulls back and consolidates over a period of time, before it retests that
original peak high. Now, on this second pullback, it creates a higher low which now creates an
109
ascending trend, allowing us to identify that an ascending triangle breakout could be coming into
fruition.
Phase 3
In phase three, price is nearing the nose of the triangle. This is causing an extreme buildup of
pressure and compression that could break price, either to the upside of the horizontal
resistance or to the downside of the ascending support. If price breaks over the horizontal
resistance line, and markets are strong enough or there is news strong enough that triggered
this breakout, then a frenzy of new buyers, FOMO chasers, and shorts are stopped out of their
position. This results in heavy buying pressure and riches for early buyers who take profits on
the run.
Let’s see how that looks in an illustration.
This is one of my first big trades in crypto after trading stocks for 16 years using these same
types of patterns. My buddy was all jazzed up about $XRP and told me to buy it. I honestly
didn’t give a shit what $XRP was and had no idea it had some psychopathic lunatic cult
following behind it. All I knew is that was in a near picture perfect ascending triangle pattern that
had not broken out yet but was looking like it was about to.
I started buying in just before the breakout occurred in the .20s and then added just a little bit
more once it actually triggered over the horizontal resistance point in the .30s. It turned into an
easy 200%+ gainer in a very short amount of time.
110
Descending Triangle - The Panic Sell Off (Bearish)
The descending triangle can be used to make money going short when an asset is dropping.
This pattern is less notable and not as reliable, in my opinion. While there is a higher probability
it will see a continuation of a breakdown in a bear market, I still see many of these patterns
breakdown only for a brief period of time, create a fakeout, and then price rips to the upside and
it was actually the bottom.
But, that said, this is also a dangerous pattern that can trigger some monumental selloffs, so it
certainly can’t be ignored. In addition, it can also be used to make money if/when it plays out
and you trade it correctly on the short side.
Let’s look at the three phase pattern of the descending triangle:
Phase 1
In phase one there is, typically, a large sell off on heavy volume that creates the first low bottom
support.
Phase 2
After the first bounce price consolidates and volume cools off, the peak of this bounce usually
creates a lower high in which we can now begin to identify that a descending trend is now
forming. Then price drops, yet again retesting the previous low thus establishing our base
support level that could be our breakdown trigger.
111
Phase 3
In phase three, price now reaches the “nose” of the triangle form. As price coils up here, the
pressure increases. Price could either break the descending trendline to the upside and trigger
a rally, or, if price breaks down, this support it can trigger a monumental sell off.
Let’s look at the example of $BTC is the aftermath of the 2017/18 bull run. We can see the three
phase descending triangle forming up perfectly here until, eventually, as price started to build
pressure near the nose of the triangle, a breakdown occurred and a massive -50% panic sell off
followed shortly after, from about $6,000 to $3000.
While I find descending triangle patterns less consistent than ascending triangles, they certainly
cannot be ignored. They can cause disastrous pain for people who are wrong side and decide
to ignore them.
112
Price Targets
What about price targets? There are “textbook” price targets that can be used for all technical
patterns that are “by the book.” Sometimes these work okay. For a “textbook” pattern target you
typically measure the vertical distance formed within the formation and then extend that
distance from the breakout or breakdown point to get your estimated target. You can see this in
the ascending triangle example below.
113
In reality, the price target for any technical pattern should be based on wherever the next
support or resistance zones are that we already learned about in the previous sections. They
should not be based off some theoretical measurement of the move, albeit sometimes this does
work perfectly. But to simplify things it’s much easier to just ask the question: Where is the next
major support/resistance zone? Price will automatically be drawn to that level after a breakout, if
the breakout in fact has a follow through. But there is typically never just “one” next support or
resistance zone. There are usually several areas coming up next. When this happens you now
have a range to exit it from a low target to a high target. So, rather than selling only if it hits this
one precise target — which is stupid because this limits your chance of winning and is
equivalent to trying to predict the future — start taking partial gains as soon as price starts
moving into this “low target” and keep selling until it reaches your “high target,” if it ever even
gets there. You increase your odds of winning by always locking in gains as they come. If you
“must” wait for an exact price target then you’ll often get close, but not reach that target and hold
on until it turns back into a loss.
Falling Wedge Breakout - Fast Pass to Profits (Bullish)
This is a pattern that can make significant moves, especially in crypto. This pattern can happen
in both bull trends, or within bear trends for short term bounce rallies that can be traded. It
almost looks like a descending triangle, yet rather than having a horizontal support as the base,
the base support is actually in a descending trend line, just as the resistance is in a descending
trend line.
Phase 1
114
Typically, phase one starts with a large sell off that creates the first low of the support area —
sometimes the pattern can start with a big pump to the upside in a bull run. The bounce that
follows creates the first peak resistance area. Now, we have our first two points to begin our
trend line drawing. At this point in phase one, it’s very premature and we have no idea what type
of pattern will be formed.
Phase 2
After the first bounce, which creates the first peak high, price makes another strong sell off,
breaking the lows of the first sell off and then bounces. We can now connect those two lows to
draw our descending support trend line. On this bounce, price rallies up, but not as high as the
first bounce, then reverses yet again for another sell off. The lower high of this latest bounce
now allows us to draw our descending resistance line in which we can now identify this is in fact
a falling wedge pattern that will either breakout to the upside or downside.
Phase 3
In phase three, price reaches the nose of the wedge and pressure begins to build up. Like a coil
being held down, upon release it will spring fast and expand. Usually, you’ll see one last sell off
breaking previous lows and a lot of noob traders panic thinking, “oh shit all hell is about to break
loose,” only for this to be a false breakdown, or fakeout, that actually stays within the wedge
pattern the whole time. Once that fakeout confirms, a wave of buyers comes in so strong that it
breaks through descending resistance and a big rally follows through.
Let’s look at the $BTC chart and see where we had three huge falling wedge pattern breakouts
that triggered massive rallies. I also drew some resistance zones so you can see where the
buying stopped, and people started taking profits near resistance zones following the breakouts.
115
As you can see, falling wedge patterns can certainly produce power moves that can be taken
advantage of on the bull side of trading. You should also understand that the breakdowns of
horizontal support at the end of the wedge pattern are what usually lead to the fakeout, followed
by a massive rally. On the opposite side of the falling wedge is the rising wedge, which we will
discuss next.
Rising Wedge Breakdown - The Last Spike that Ends the Rally
(Bearish)
Rising wedges trigger near the top of an extended bullish rally. They can be very tricky for many
traders because often there is once last spike over previous highs that traders interpret as a
breakout to new highs and they get stopped out, only for this to turn into that last exhaustion
spike and fakes everyone out. Then massive selling comes in and collapses price through
support and then panic selling follows and sees a big nasty drop.
I’d say these patterns are much less common than a falling wedge pattern. Still, let’s take a look
at these so that when we do see them arise in the markets, we have a clear idea of how the
neural network of traders may react.
Phase 1
There are two ways phase one starts for a rising wedge. One can be at the top of a bullish rally
where the first peak is formed. The other can be a brief rally within an overall bearish trend
before a bigger sell off occurs, whereas there is a big sell off that occurs that creates the first
low of the upcoming wedge formation.
Phase 2
116
Phase two is where the where we see both higher highs and lower highs converge towards
each-other forming what can start to look like a rising wedge pattern.
Phase 3
In phase three we typically see one last spike to the upside that is perceived by many untrained
eyes as the next “breakout,” only for it to turn into a fakeout and stay within the overall wedge
pattern the whole time. Once that fakeout confirms, a landslide of sellers come in to break the
ascending support. Once that happens, it’s full panic and price can drop to the next support
level.
Let’s look at $BTC chart and see if we can identify some rising wedge patterns, see how they
play out, and see how they reacted to support levels after they broke down.
117
As you can see , rising wedge patterns do indeed form up and can indicate potential large
reversal breakdowns. This is why it’s important to understand patterns and sloping support and
resistance levels. If you only used horizontal support and resistance you could potentially
interpret a lot of these last spike highs or lows as breakouts or breakdowns when, in reality
they’re the final climax of a wedge pattern before big reversal takes place.
Of course, it’s so easy to draw lines after the fact. Trading in real time with real money is a
whole other ball game. I want to remind you about hyrdafunding.io again as I believe it’s the
best way to learn trading with without risking your entire account all at once, as there will be
many wild swings and emotional fakeouts through your learning process. This is even true after
you read this book. Yes, you’ll have a deep understanding of how price action and the neural
network works, but you’ll still have zero experience in live, wildly emotional markets. You’ll still
have a chance of fucking up and getting too greedy and fearful and blowing up you first few
trading accounts. So, I urge you not to risk your entire account on at one broker when you get
started. Give yourself a real shot at succeeding by knowing that you could and probably fail a
few times before you get the hang of things and start profiting. This is exactly why I partnered
with hydrafunding.io, so you’ll a learning environment where you still have skin in the game and
the emotional aspect is still there, but you’re not risking everything all at once. You can head to
hydrafunding.io to see what our current trading options are today.
Head and Shoulders - The Man in the Mirror (Bearish)
The head and shoulders is a classic pattern that literally looks like a man on the chart staring at
you, with two shoulders and a head in the middle. This is a pattern that is less on my radar. It’s
not something I typically “seek out.” In fact, it’s not even something I can find that often. With
118
that said, it’s still a pattern of TA, and does have relevance. So, let’s look at how it works and
see if we can identify any recent examples on the charts.
Phase 1
In phase one, the first shoulder is formed by creating a new recent peak high and making a
small pullback, which creates the base of the neckline.
Phase 2
In phase two, price pumps to new highs over the last peak before selling off, typically below the
first peak high. Price stalls and makes a low. Creating the second neckline pivot. Important to
note that the slope of the neckline does not matter. It can be ascending, descending, or
horizontal in this channel. Just depends on where the high/low pivots are made within the
pattern.
Phase 3
In phase three, price rallies off the last pivot low. Sometimes higher than the left shouler top,
sometimes lower, but never above the head. If price breaks below the neckline, this is a head
and shoulders breakdown in play.
That said, I just went through the past couple years of price action on $BTC and $ETH and I
couldn’t even find one clear example of a good looking head and shoulders, or even an inverse
head and shoulders that would’ve been a clear pattern that I would’ve had any confidence in
trading. This goes to show that this is a pattern that is less on my radar as something to trade.
119
For projected price targets on this pattern, with no consideration for where the next support or
resistance zones are, we simple measure the length between the peak of the head and extend it
from the breakdown point neckline.
But let’s also look at the S&P500 that I like to trade on with our hydrafunding.io platform, as you
can trade crypto, forex, stocks, and US and Euro index futures, like SPX500. It did, in fact,
create a semi-nice looking head and shoulders pattern that nailed its projected price target. This
also happened to be the next support zone, so that was a confluence on this trade that this area
would be a great place to lock in gains or even buy the dip. We then see that price rallied hard
and fast off this level right back into the neckline, which is now resistance. Then price proceeded
to hit new lows.
120
Inverse Head and Shoulders - Drunk Man in the Mirror - (Bullish)
The inverse head and shoulders is the exact some pattern as the head and shoulders, only it’s
flipped upside down. Because he’s upside down, I figured I’d call this one the drunk man in the
mirror. And when this pattern triggers, and a breakout is in play, it’s like him sobering up and
coming back to life ready to go.
Let’s look at the three phases.
Phase 1
In phase one, the first shoulder is formed by creating a new recent peak low and making a small
bounce, which then creates the first peak of the base neckline resistance.
Phase 2
In phase two, price drops to new lows below the previous low and then bounces to make a new
pivot high, which creates the second peak that we can now draw our neckline resistance.
Phase 3
In phase three, we see a small selloff from the neckline but we do not go below the head of this
pattern. Price rallies and test the neckline resistance and if it breaks out, this is an inverse head
and shoulders breakout in play.
121
Now, let’s look at this recent MONUMENTAL run $AAPL made to all-time highs after breaking
out of an inverse head and shoulders pattern. When price is in all-time high territory there is no
“resistance zone” to be used for a profit target because there is no history of price being up here
before. So, in this case, we can use the projected target of this pattern to estimate where it
could top out at. As of right now, it looks like $AAPL has slowed its momentum right around the
target of this pattern. This was one of the craziest moves on a stock I’ve, seen as it just blew
past three resistance zones into new all-time highs. This rally on $AAPL was one of the reasons
why the Nasdaq just had its best performing first half of the year in the last 40 years.
122
Symmetrical Triangle - The Confused Tourist (Bullish and Bearish)
I call this the confused tourist because rather than at least one side of the pattern being
horizontal, like the ascending/descending triangle, both the support and resistance lines that
form are sloping trend lines of “symmetry” converging toward the nose of the triangle. The
symmetrical triangle can usually be seen as an interim continuation pattern of the overall recent
trend. The way we can determine if this pattern is “leaning” towards bullish or bearish is based
on what happened prior to the formation.
If the lead in trend was bearish, and price was dropping in the months/weeks leading into this
pattern, we can expect this to be a “bearish symmetrical triangle” pattern and expect that there
is a higher probability to see it breakdown this pattern and continue the bearish trend, as
opposed to seeing it breakout to the upside and reverse the trend.
If the lead in trend was bullish, and price was pumping in the months/weeks leading into this
formation, then we can expect this to be a “bullish symmetrical triangle” pattern and we can
expect that there is a higher probability that this will breakout to the upside as opposed to the
downside.
Phase 1
In phase one, the lead in trend indicates the higher probability of the breakout or breakdown.
The first peak is formed on either top or bottom, and it can happen either side first because it is
symmetrical.
Phase 2
123
In phase two, unlike the ascending/descending triangle where a horizontal support/resistance is
formed, both support and resistance form in as a trend lines symmetrically, where resistance is
creating lower highs and support is creating higher lows.
Phase 3
In phase three, price converges at the noise building massive pressure. A breakout or
breakdown signals which way this pattern will breakout or down.
Here is an illustration of a “bullish symmetrical triangle,” simply for the fact that prior to the
formation, price was moving up.
The bearish symmetrical triangle looks the same. The only difference is that the lead in trend is
bearish prior to the formation happening.
124
For price projected price targets, we can measure the distance from the top to the bottom of the
triangle based on where the second point of support or resistance was formed. We then project
that distance from the point of the breakout to estimate our target. Again, the most important
target is always based on where the next most significant ranges of support and resistance. But
we can also use these projections for areas of confluence.
Let’s look at $XRP when it broke out of a symmetrical triangle. It ripped right through its
projected target and all the high to the highest level and zone of resistance/supply.
125
Double Top - The Golden Arches McDonalds Special
(Bearish)
I call it this The Golden Arches McDonalds Special because it’s literally a big “M” staring at you
on the chart. This is also a very common pattern in the technical analysis world, but it still works
quite well over and over again. As I’ve stated previously in this book, some of the most powerful
and biggest reversals are the first retest of a resistance or support level. So, in the instance of a
double top, the second peak is the first retest of the previous major top, and this signals the
potential for a big reversal off this level, followed by even further lows when support is taken out
and price hits the target. The longer this pattern takes to form the more potent it can be.
Phase 1
In phase one, we see an extended rally into overbought territory creating the first peak
resistance.
Phase 2
In phase two, the rally halts, followed up by a selloff until it creates a pivot low which is now
considered the breakdown confirmation support.
Phase 3
126
In phase three, we see price make an extended rally back to initial peak resistance only to fail to
breakout. A selloff follows through back to support. A breakdown of support is the confirmation of
the double top “in play” and price could potentially drop to the next support levels or projected
target level.
The projected target is measured by taking the distance from the peak of the horizontal
resistance to the support level and extended that distance from the confirmed breakdown point.
127
Let’s look at some real examples of double top patterns playing out in the markets.
Here is an example of a short-term double top on Silver XAGUSD forming a double top,
perfectly tapping the previous peak high and reversing, followed up by a breakdown of the
phase two support level. Target is then reached shortly after.
128
Now, let’s look at a longer term double top that resulted in a much larger move. Nike $NKE
formed a massive double top when it reached all-time highs, forming its first phase one peak.
This was followed up by a huge dip in phase two, creating the low pivot of support. Now, in
phase three, things got tricky because price briefly broke out above the previous high only to fail
and “trap” people in who bought the top — more on breakouts vs. traps later — resulting in a big
selloff back to support where it formed a “bearish pennant,” just before it finally broke down
support and pushed towards its target.
Double Bottom - The W Booty (Bullish)
This is the opposite of the golden arches special. The double bottom is flipped over making it
look like “W” on the chart, or even a booty squatting on the floor 🍑 . The same thesis applies
where the first dip support is retested, which can typically be the strongest reaction which can
push this thing hard off lows to fulfill the patterns trigger and target.
Phase 1
In phase one, we see a large selloff that results in the first low pivot of the “W” formation.
Phase 2
In phase two, price rallies off the low pivot to create the high pivot resistance of the double
bottom “W” pattern and begins to sell off from there.
Phase 3
129
In phse three, the phase one low pivot is tested and holds its ground followed up by a strong
rally into resistance. Then price breaks out and heads toward the projected target.
Target Projection
Measure the distance from the peak low support to the middle of the “W” resistance and project
that distance from the resistance breakout point.
130
Now, let’s look at some real examples of the double bottom booty playing out in the markets.
We can see a perfect double bottom on gold $XAUUSD playing out before pushing its way up to
the target and even much farther. The projection target is always just a theoretical place to lock
in some gains. It by no means is a determining factor of “this is as high as it will go.” As always,
the markets are unpredictable 100% of the time. We can only look for high probability setups
and manage risk accordingly.
Triple Top - “One Last Song” (Bearish)
If you’ve ever been to a concert there is usually an “encore” where the show looks like it’s over,
the star walks off the stage, and then the crowd chants “ONE LAST SONG!” over and over
again until the star pops out on stage and every goes crazy for one last song. That’s the triple
top. in this case, some people might be playing it thinking it’s a double top, only to see “one last
peak” to form a triple top, and those who are trying to trade the double top are now going crazy
because they’re stuck in their trade at a loss or stopped out, wondering what’s going to happen
next (lol). It’s pretty much a double top formation with one more dip high and low before it finally
breaks down. This is a less common pattern in the markets. You could also say it’s similar to a
head and shoulders pattern, yet all the peaks are around the same level.
Phase 1
In phase one, the first peak is formed by a large rally making a new pivot high that becomes the
first resistance level.
Phase 2
131
In phase two, the price drops to the first pivot low, creating the support area of the pattern,
followed by the first retest of the peak high, and the first retest of low support. This now looks
like a double top pattern.
Phase 3
In phase three, as opposed to confirming a double top, price rallies up again to form the third
peak and second retest of resistance, only to fail and drop back to support, soon breaking down
and confirming the pattern.
Price Target Projection
Measure the distance from peak resistance to low pivot support and extend that distance from
the support breakdown level.
132
To be honest, I just scanned through a bunch of charts to find some examples and I couldn’t find
one good example of this pattern playing out. I had to Google Image search to find an example
that I won’t plagiarize and paste here. So, it’s really not something I trade or look out for too
much. However, it’s good to understand that just because you think you see a double top
forming doesn’t mean it’s going to be a confirmed double top that works out. You must be
prepared for it to not do what TA suggests it might do, or what you “want” it to do. Often, when
we have triple peak resistance like this, it could also be forming an ascending triangle breakout
potential as well.
Let’s look at a chart for gold right now, which is “triple peaking” and “could” become a triple top.
However, it’s more so leaning toward an ascending triangle breakout pattern to breakout to alltime highs. But notice how it was a double top at first and we saw a big reversal off the first
retests of highs. Price then dropped back to the double top support and it looked like it was
about to breakdown and confirm the double top, only it failed, followed by a massive rally right
back to the double top peak resistance — which now could both be a premature triple top or
even an ascending triangle breakout pattern. I’m leaning toward an ascending triangle breakout.
I wrote this on July 13th, 2023. So, you can look at the $XAUUSD chart now and see how this
pattern ended up playing out.
133
Triple Bottom - DJ KHALED! Another One! (Bullish)
Every song DJ Khaled produces the song stars off with “DJ KHALED! ANOTHER ONE!” The
triple bottom is the exact opposite pattern as the triple top but it is a bullish reversal pattern.
Then, just when you think it’s a double bottom, nahhhhhh, in comes another dip to mess with
your head! This is not something that’s super common, and it’ not something I typically trade on
a regular basis, but it exists. So, it’s good to understand the anatomy of all possible scenarios
so that, when we setup trade plans, we’re prepared for anything that could happen.
Phase 1
In phase one, the first pivot low is triggered by a heavy selloff creating our first support line.
Phase 2
In phase two, the price rallies off the low creating the first peak high resistance, followed by the
first retests of both support and resistance giving us signs of a double bottom.
Phase 3
In phase three, rather than a double bottom confirmation, DJ Khaled comes in guns blazing with
"ANOTHER ONE," aka the third dip to support, followed by the final breakout and confirmation
of the triple bottom.
134
Price Target Projection
Measure the distance from support low to resistance high and extend that distance from the
breakout confirmation level.
Now, let’s look at some examples of triple bottoms playing out in the markets. It just so happens
that the gold chart we just looked at had a triple bottom bullish reversal signal, which was also
135
the trap and failed double bottom breakdown. So, you could consider this a “confluence” of two
bullish patterns together.
1. The failed double top breakdown signaling a trap.
2. A triple bottom reversal triggered the trap and failed double bottom signal.
Let’s take a closer look. See, the failed double top breakdown turned into a triple bottom, which
then triggered the failed double top breakdown. Again, triple tops and triple bottoms aren’t
something I trade too often, but it’s still good to understand this anatomy to be prepared for all
potential scenarios.
136
Ascending Channel - It’s Bullish Until It Isn’t
The ascending channel is a great pattern to identify potential tops and bottoms of short and long
term trends. It helps identify areas where you could either be buying the dip or selling the top
within the trend that its currently forming. This is a pattern that I find myself using more and
more. Success with this often comes down to getting in and out are key levels within a trend,
and, of course, being able to identify areas of confluence when we can combine it with other
factors, such as horizontal support and resistance and our trading indicators.
There are two ways of looking at ascending channels. One is to trade within the channel and
follow the trend. The other is to identify when the channels trend is over, which may be a
reversal signal.
Phase 1
In phase one, the channel’s formation can start from either a high pivot or low pivot. It doesn’t
matter which one. Either way, the pivot high/low in phase one is the beginning of the channel.
Phase 2
In phase two, we see at least one higher high and one lower high, so that now we can connect
both an ascending support and an ascending resistance line to draw our channel.
Phase 3
It's no telling how long price will stay in this channel, but when price reaches support or
resistance these can be seen as potential reversal levels until the channel breaks down.
137
Most charting tools will have a channel drawing tool with an icon that looks something like
this: //.
Now, let’s look at the $NDX100 chart. It’s one I love to trade, and it’s one you can trade with
your hydrafunding.io account.
In this chart, we see a clear ascending channel formation that could’ve been traded off the tops
and bottoms. It clearly defines key ascending support and resistance levels for this bullish trend,
until finally the trend broke, and the Nasdaq. It was a big reversal.
Being that this is an “ascending” channel, we always draw our channel from the lower support
levels and then “drag up” the channel to see if the higher high resistance levels are in alignment.
138
Descending Channel - It’s Bearish Until It Isn’t
The descending channel is the is the exact opposite of the ascending channel. It’s in a very
clear bearish trend with very defined tops and bottoms forming a channel. This is a great setup
to be identify when price is reaching peak levels within a bear trend before heading to new
potential lows.
Just as we can with the ascending channel, we can look at this as two ways: to identify pivot
levels within a bearish trend and a potential reversal of trend if/when price breaks out above the
descending resistance line.
Phase 1
In phase one, the channel’s formation can start from either a high pivot or low pivot. It doesn’t
matter which one. The pivot high/low in phase one is the beginning of the channel.
Phase 2
In phase two, we see at least one lower high and one lower low, so that now we can connect
both an descending support and an descending resistance line to draw our channel.
Phase 3
It's no telling how long price will stay in this channel, but when price reaches support or
resistance these can be seen as potential reversal levels until the channel breaks out to the
upside and reverses trend.
139
Now, let’s look at a Descending Channel pattern on the $US30 where I pulled a big profit on
alerting to my Telegram wolf pack members and hydrafunding.io traders. At the same time that
the Nasdaq reversed from that ascending channel so too did the $US30 (the Dow Jones
Industrial Average Index DJIA ). After reversing, it began to form up a descending channel of
which, after the third test of the channel, showed a potential prime shorting opportunity. Price
briefly broke out above the channel and then quickly reversed creating a trap. Price then
continued to make a massive drop to new lows on $US30 and I pulled a big $38,000 profit.
You can see the channel formation playing out here has to crash all the way back down to the
low of the channel support. Because it’s a descending channel we always draw resistance first
on top and then drag the channel down to descending support lows.
140
Here’s my $38,000 profit going short off the channel resistance level.
141
142
Continuation Patterns - The Show Must Go On
Continuation patterns are exactly what the name implies. They’re patterns that form up after a
breakdown, or breakout, that suggest a “continuation” of the current trend that’s in play. These
form and consolidate on a much smaller time frame such as five to 14 days or so before
triggering a breakout or breakdown of the pattern which signals a continuation in favor of the
trend. But, if the pattern fails, it could indicate a potential short term pullback reversal.
These continuation patterns are known as flags and pennants. However, the reality of it is that
they’re basically just “smaller” forms of patterns we already learned previously in this book.
Bullish Continuation Patterns
These patterns typically form in bullish trends and post breakouts. In these patterns, rather than
price rising fast into an area of resistance and falling fast off that level, price rises and then halts
around that level forming up one of these patterns, followed by a breakout and continuation of
the bull trend.
Bull flag continuation patterns include:
•
•
•
Mini Descending Channel
Mini Ascending Triangle
Mini Falling Wedge
143
Then there’s bull pennant/flag, or mini symmetrical triangles. These are pretty much the same
as bull flags, but due to their shape, they’ve been labeled as pennants. You may also hear
people call them flags.
Bull megaphone continuation patterns are the opposite of the pennant, as it’s flipped around in
its formation, yet it’s still a potential bullish pattern as it starts compressed, and both the highs
get higher and the lows get lower before making a continued push to the upside.
144
Bullish Flag Reversal Patterns
These are the same patterns above but they occur within bearish trends and, while they are
extremely strong to signal a full on longer term trend reversal, they can trigger a short term
reversal within the bearish trend.
Bull flags for reversal patterns include:
•
•
•
Mini Descending Channel
Mini Ascending Triangle
Mini Falling Wedge
145
Bear Flag Continuation Patterns
These patterns are typically formed in bearish trends and post break downs. Rather than price
crashing and bouncing back fast off of a support level. Price crashes and then stays around that
level for a week or two forming up one of the following patterns, followed by a break down and
continuation of the bear trend.
Bear flag continuation patterns include:
•
•
•
Mini Ascending Channel
Mini Descending Triangle
Mini Rising Wedge
146
The bear pennant/flag, or mini symmetrical triangle, is also similar to the bear flags, but due to
their shape they’re called bear pennants. However, many people just call them flags as well.
147
Bear Megaphone Continuation Pattern
This is the opposite of the pennant, as it’s flipped around in its formation yet still a potential
bearish pattern as it starts compressed, and both the highs get higher and the lows get lower,
before making a continued push to the downside of the current bearish trend.
Bear Flag Reversal Patterns
These occur within bullish trends signaling the potential tops of the bull trend before making
small reversals back to the bull trend support.
Bear flag reversal patterns include:
•
•
•
Mini Ascending Channel
Mini Descending Triangle
Mini Rising Wedge
148
Now that we‘ve seen all the potential options here, let’s look at Bitcoins recent price action, in
both a bear trend and a bull trend, and see how understanding what these patterns look like
could have helped us determine some price action moves.
It’s important to understand that flags come in all shapes, sizes, and, more importantly, “time to
formation,” aka how many days it actually took for this pattern to breakout or break down.
Sometimes it’s a week. Sometimes its two to three weeks. These fluctuations in time can make
it easy to get duped when you think it’s going to be a one week pattern based off of a breakout
or breakdown, but then it quickly reverses back into the flag consolidation and it was just a false
spike that’s now continuing to form up a longer consolidation period of this potential flag.
Below is the $BTC chart. and we can see many of these continuation and reversal patterns
playing out on one week, two week, and three week “time to formation” scales, aka how long it
took for price to breakout/breakdown from the formation.
149
150
Chapter 13 - How to View Every Trade
From Top Down
As you can see, there are many different patterns and factors to be considered when we’re
looking at a chart form. So, let’s summarize what we’ve learned and look at the $BTC chart and
all the ways we can interpret the highest probability outcome for price action.
First, let’s remember that all of this works because of the self-fulfilling prophecy that’s powered
by our human emotions, fear, and greed.
Second, we identify the major horizontal support and resistance (supply and demand) zones.
151
Third, we identify major ascending and descending trend line support and resistance levels that
could also be in confluence with horizontal levels and create “SUPER” levels of support and
resistance.
152
Yes, this played out perfectly. But remember, only a fool would think this was a guarantee.
Confluence only increases the probability that it “may happen.” It doesn’t mean that it’s going to.
Fourth, we use trading indicators to measure overbought and oversold territories and look to
find confluence between the charts support and resistance levels and if our indicators are
signaling the same thing to create a higher probability scenario for us. In addition, are the
indicators showing a divergence? If yes, this further increases the probability support or
resistance will work according to its theory.
Fifth, are there larger technical chart patterns in play that could indicate bigger breakouts or
breakdowns that are forming that could indicate some trade opportunities within everything we
know so far? An example of this would be these larger falling wedge patterns that lead to big
rallies for $BTC.
153
So, that’s essentially how we should be looking at any chart from a global view based on all of
these components that we’ve learned so far to give a very solid basis of anticipating and
reacting to price action movements.
154
Chapter 14 - How to Make Life Changing
Money
To be honest here guys and gals, I’ve just scratched the surface here. There is still much more
to discuss and learn. This book is just my introduction to get you started with a solid foundation
of which path you need to take if you want to truly become a long-term successful trader, build
wealth, travel the world, make money from anywhere while on vacay, and use your newfound
wealth to diversify in other passive investments like I have.
It’s amazing to be trading from my cafe that invested in with profits where I eat for free and
make a monthly dividend from. It’s going be amazing to work out for free at the most advanced
wellness center and gym in Bali that I invested in with profits. It’s amazing to live for free in my
dream home that I spent two years designing and building and have the ability to rent it out for
$700/night that was all paid for with trading profits. It was amazing to buy my dream cars with
my trading profits.
When done correctly, it’s pretty crazy what trading can do for you. But again, I must stress that
this is not an overnight success story. I failed for three years before I ever made a penny, and it
took another several years after that before I really felt like I’d achieved something BIG. The
reason this took so long for me was because I was approaching trading with the same mentality
that you were before you started reading this book. I wanted to get rich quick. I wanted to make
life changing trades. I wanted to swing for the fence and hit that home run trade that would
change my life forever!
155
But I soon found this path and approach to the markets was ensuring my rapid failure. If you
want to get rich and make “life changing money” in this game, you need to slow the fuck down.
It’s going to take hard work, discipline, and, most importantly, patience before you make it big.
Stop trying to make that “life changing trade.” Slow the fuck down so you can make “life
changing money” overall, by hitting smaller consistent singles and doubles over the long run
that compound growth, instead of risking it all for that single home run.
If you have liked what I’ve offered so far in this book — I’m assuming you did since you’ve made
it this far — I can take you soooooo much deeper down the rabbit hole and show you some
game changing strategies that will give you a massive “edge” all the other traders in the
markets. You will become a wolf, you will heard the sheep. and you will be empowered to steal
everyone’s money and claim it as your own. You’ll no longer be a statistic of the 98% that lose
money.
I want to thank you for joining me and getting this far through this book. I put my heart and soul
into this, even though I absolutely hate writing. This wasn’t a fun process, but I got through it
(lol) and so did you! Together, we’ve achieved something we should be proud of.
If you’ve enjoyed everything I taught and offered in this book, let me tell you this was just tip of
the iceberg. I have countless hours of more actual video course teaching deeper price theory, and
how to further gain your edge in trading to truly become a master at this craft.
I remember when I had my first $1,000 profit day many years ago. It was such an insane feeling.
It felt like it was a fantasy or fake money. But it was just the start. Little did I know that I’d
eventually get to $50,000 to $100,000 days, and even $500,000 months, which I don’t even
know what to think about today (lol). It still doesn’t feel real. But I assure you it very much is.
The problem with most traders that ever get to experience these types of gains only did it on
lottery ticket trades and eventually give it all back and yet again contribute to the 98% failure
rate.
My goal with my trainings is to help you not only experience the euphoria making money trading
that magically appears out of thin air in your account, but also, and more importantly, making it a
slow and consistent way to make money that ensures that you keep it and continually grow it.
But before we close out this book. I have one last life changing section that you MUST READ. I
call these the wolf principles. It’s essentially a list of commandments to live by as a trader. Print
this shit out and hang it on your wall. Read it, memorize it, and live by it.
Without further ado, I present to you The Wolf Principles.
156
157
Chapter 15 - The Wolf Principles
Let’s dive right on in.
Why 95-98% of Traders Fail
It’s a statistical fact. I’ve seen the numbers from real brokers that I got the chance to see the
data of people opening accounts and what the failure rate was. So, why is this? Is trading really
that hard? The answer is yes. Trading is really fucking hard. BUT… It doesn’t have to be.
The reason why there is such a massive failure rate is because most new traders begin without
any proper education or training. They see someone, like myself, post that I just made $50,000
today and they want in on the action and they want in on the action NOW. What they don’t want
to think about is that I’ve been doing this for 20 years and that’s why I can make this possible.
They want to get rich quickly and get started with zero knowledge and false fantasies about how
much money they might make. If you want to be part of the 5% who win, this is what I'd do if I
was starting out now. First, you must have the knowledge of a pro before you even start. Then
I’d open up a hydrafunding.io account with a fraction of my overall money dedicated to trading,
while also understanding that you I’ll likely blow up my first one to five accounts because, in this
hypothetical, I’d still have no “experience” yet, because, remember, knowledge isn’t enough.
What separates the 95% from the 5% are the traders who go into this with a get rich slow
approach and understand that they’re going to have to lose first to earn the right of passage to
win in the long run. This is why I think you should be starting with a hydrafunding.io account
first, with just a small portion of your money, as opposed to a normal broker where you’d be
risking everything all at once. If you do the latter, you’ll likely l have a 95-98% chance of losing it
all.
But that’s not going to be you. You’re on the right track as of now just by almost completing this
book and gaining a deeper understand of trading philosophy and what separates the winners
from the losers, and the wolves from the sheep.
Trading Income vs. Wealth
This is one of the most important questions to be answered and thought about. Most furus, or
fake gurus, out there will sell the dream of quitting your 9-5 to become a full-time day trader and
travel all over the world and fuck off into the sunset. Trust me, I know because I’ve also
personally used these words in my sales copy before. And while it is 100% possible, we still
have to factor in that 95-98% of traders will lose all their money.
158
Now, of those 5% who can consistently make any money, trying to rely solely on your trading to
pay your bills every month is going to be extremely stressful. I’d go far as saying that, in fact, if
you do that, I don’t think you’ll live a happy life.
All traders go through good months and bad months. For many, one bad month could snowball
into a heightened emotional state where you make even more bad decisions to try and recover
from this bad month, which leads to you blowing up your account and boom just like that your
jobless and don’t have a trading account anymore.
This is why I think trading for wealth is much more feasible, will lead to greater riches overall by
compounding your gains, and a much more fulfilling and happier life. If we have a steady stream
of income from doing something else, whether it be your 9-5 or just a side hustle that can pay
your bills, this takes a huge weight off your shoulders and allows you to be much more
levelheaded in your trading decisions. Trading with a level head will lead to bigger profits in the
long run because you won’t be an emotional wreck as soon as you go on a losing streak and
suddenly you can’t pay your bills this month, which also means you’re “forced to trade” because,
if you don’t profit, you’re fucked.
You should never be forced to make money. You don’t decide when you make money trading,
the market does. Sometimes there are no setups in play, and the best trade could be NO
TRADE for weeks at a time.
Long Term Success in Trading is Not Derived From
Becoming an Expert at Winning Big, It’s Derived From
Becoming an Expert at Losing Small.
Most sheep also fantasize about that life changing trade. I was once victim to this as well. I was
once too a sheep, nearly 20 years ago, when I started. I lost money for my first three years of
trading because all I was focusing on was trying to win and nail that life changing trade.
However, things started to change for the better for me when I shifted my focus to 100% on
survival. My goal became to NOT LOSE, and to survive to trade again tomorrow. Once I learned
how to survive, then I was able to thrive. So, stop focusing on trying to win all the time.
For every trade you enter, your main focus should always be on identifying what the worst-case
scenario could be and how you will be okay if it happens. Once you’ve identified those, you then
want to set up your trade plan around that before anything.
In a nutshell, trading isn’t a game of learning how to thrive. It’s a game of learning how to
survive.
159
Lottery Ticket Trading - Life Changing Swing for the Fences
vs. Learning to Trade
Did you know that 70% of lottery winners go broke or bankrupt? This is because they didn't
accumulate any skills to earn this money. So, once they have It, they lose it by doing dumb shit.
The same thing goes with trying to get rich on memecoins or any other “fast money” idea in
trading. It's a lottery ticket. Even if you hit it big, it wasn’t skill. It was a lottery ticket trade. And
there is a high probability you’ll lose it all later because you’ll try to repeat something that you
didn’t understand how to do in the first place. After all, what are the odds of winning the lottery
twice?
Please think clearly when trading. No one who is truly successful in the long term uses get rich
quick or lottery ticket trading strategies. NONE of them.
Being Wrong On a Trade Only Matters If You Don’t Use a
Stop, Either Physically or Mentally
Furthering that, you should never lose more than 2% max of your portfolio when that stop is
triggered. That’s the rule of thumb. Break that rule and you’ll see how hard it is to recover
without revenge trading, which puts your entire account at risk.
New Data? React to it, Never Ignore It
I find it funny when people get mad when you shift a trading position or opinion.
"Yesterday you said!?!?"
“A few months ago you said?!!?”
That doesn’t matter. The past doesn't have today’s data.
Trading is not predicting. It's reacting to what the data is telling you here and now. And new data
comes out every microsecond.
The reason most traders fail is because they don't react to "new data" and, instead, hold onto
their opinion from yesterday, regardless of if new data suggest something different that they
should be reacting to.
Trading isn’t “pick your favorite coin and become part of its degenerate community who are all a
bunch of worthless and brainless ‘get rich quick’ crypto bros.” Trading is finding windows of
opportunity to make money. Get in, and MOST IMPORTANTLY... GET OUT!
160
You simply cannot make money in trading unless you GET OUT and SELL your position when
you have a profit. Fuck your team and fuck this stupid crypto community. When you get what
you came for, MONEY, you bounce and tell everyone to fuck off while you look for the next
trade.
Market Swing and Windows of Opportunity
Big market moves for swing traders typically last one to eight weeks, but you only get about a
24-48 hour window of a safe opportunity for a high-risk reward for entry. The rest of the time
between is sitting on your hands and having the discipline to wait for those windows.
There is so much “grey area” in trading where people are FOMOing in and chasing the moves.
The gray area is where the sheep love to hangout, and this is why they all lose money.
WAGMI vs. PVP
WAGMI is a crypto term that stands for “we’re all going to make it.” It’s a shitty marketing tactic
to build engagement by telling everyone that they’re going to get rich and crypto is LIFE
CHANGING TECH! JUST HODL WAGMI!! LET’S BLOW EACH OTHER!
What in the actual fuck?
WAGMI is the farthest thing from the truth. The data doesn’t lie and 95%+ are going to lose
everything.
Trading is a game of PVP (player vs. player). There is no WAGMI. Everyone is your enemy
once you’re out of the classroom and trades are live. Trust no one. You’re a lone wolf. Now get
to eatin’!
Even I’m your enemy if we’re in the same trade. Sure, we can both make money on the same
setup and trade, but we are still competing for the best entry and exits within the same trade at
certain prices. This is especially true on lower cap trades where volume is low. If I’m trying to
bail on a $300,000 position, I need liquidity to exit. I’m not gonna be helping out students saying,
“Hey, I’m about to sell.” I need to focus on myself, not you, during a live trade. This is why I
never suggest anyone to follow me in a live trade. Just watch. Because when I’m trading, I’m
definitely not looking out for anyone but myself. Unfortunately, that’s just how it goes. My focus
is always to teach principles and enable you to become a master for yourself.
161
Copycat Traders
When you try to copy a trader, the only thing you’re doing is helping push price in their favor if
the trade goes well. It will be at their benefit and your loss. You can't copycat a trader, but, you
can certainly learn by watching what they do for future reference.
If/Then Statement Trading
There is never any being right or wrong in trading. There is only failure to not look at all possible
scenarios and not plan for them. Most people only ask the singular question of “Is this a good
buy?” What they should be asking is “Is it a buy or sell?
Then, once they decide whether it’s a buy or sell, they also need to setup the game plan for
being wrong. Ever trade needs an if/then statement once you’re in. If scenario X happens then I
will take my profit here, but if scenario Y happens, then I’ll take my 2% max loss here.
Predicting vs. Reacting
A fool tries to predict where price will go. A pro identifies all potential scenarios, prepares for all
of them, and creates a plan in favor of the highest probability, and calculated exit plans for every
possible scenario that might play out.
HODL vs. Trading
You shouldn't HODL through a bull market. You should sell through a bull market. However,
most do quite the opposite. They buy through the bull market, and HODL through the bear
market.
There is a massive difference in buying during fear, extreme lows, and HODLing until the next
bull run and taking gains along the way and buying euphoric bull runs with unrealistic
expectations and HODLing -90% all the way to the bottom of a bear run. Know the difference.
Calling the Bottom
The majority of traders will lose most their money in bear markets and/or trying to call the
bottom. Calling the bottom doesn't matter. Real high probability patterns won't form for months
after the bottom is in. The key is to hold onto your cash until then, and not lose it all now.
Avoiding Competitive Personality and Revenge Trading
Being an overly competitive person is not a positive character trait in a trader. Observe a
competitive person lose in a competition. They break down emotionally and become enraged.
This is exact emotional response you need to train yourself to avoid after a loss in trading.
Anger and rage lead to irrational “revenge trading” decisions that lead to further losses.
162
Get Rich Slow vs. Get Rich Quick
Never trade to get rich. Trade to have longevity. Do that and you’ll build wealth over the long run
and get rich slow, like the rest of the rich people out there.
Spotting Fake Gurus
If you see anyone posting screenshots of 25-50x leverage profits, you already know they’re a
terrible trader, have zero idea about risk management, clearly have no long-term experience,
and will soon blow up. Always check who you are getting your FOMO from.
Losing Everything is a Rite of Passage
Losing everything in trading is not something to be frowned upon. In fact, it's a requirement and
a rite of passage. Once you’ve lost everything, at least once, only then are you prepared to have
longevity in this game. You’ll have felt max pain, and you’ll now know what happens when you
bend the rules, even just slightly.
Rules of the Game
Trading is a rule-based game. Break them, and you’ll be disqualified.
Capital Preservation in Bear Markets
The most important thing for a trader to do in a bear market is to educate themselves and
preserve capital, so that when the environment is ready for money making their head is clear,
they’re confident in strategy, their trading account balance isn't fucked, and they’re ready to
fucking CRUSH IT.
Unfortunately, 99% of you have been FOMO trading every day, and donating cash to the money
pool. Your account balance is fucked, your confidence is low, you have no fucking clue what
you’re doing, and you’re about to blow up your account. So, next time, you got this!
Most traders actively trade slow periods and lose most of their account. By the time another
market cycle with good setups arises, rather than making bank, they’re just trying to make up for
losses. Have the patience and discipline to sit on your hands when there are not trade setups.
This is also why you shouldn’t rely on trading to pay your bills.
163
Who Creates the Big Moves That Makes Pro Traders Rich?
You do.
Want to know who creates big parabolic moves to the upside? You do. It’s created by the
average retail FOMO trader. Know who you’re buying from? Smart money that’s selling. Know
who creates panic selling capitulation bottoms? You do. Know who’s buying? Smart money. The
wolves herd the sheep. It's not "different this time." It's the nature of all financial markets —
stocks, crypto, forex, etc. Big money controls the narrative while sheep trade on the wrong side,
handing over cash to the rich.
No One Can Predict the Future
No one knows what’s going to happen in the markets, EVER. What smart traders do is make
the best educated guess based on data and probabilities, knowing full well they could be wrong.
And rather than thinking they’ll win, they double down on protecting themselves if they’re wrong.
Acknowledging the Bear
Do you know why 99% of the crypto community get destroyed in bear markets? It’s simple. It’s
because they don't acknowledge the bear ever exists until their account is already wiped out.
You Have to Be Willing to Fail For an Extended Period of
Time to Finally Win?
I’m 99.99% certain that no successful trader didn’t spend a lot of time in the 98% of losers
before they made it to the 2% of winners. All that matters is who dedicated 110% of their time,
didn't give up, and learned what others were not willing to.
Big Moves Usually Mean the End, Not Just the Beginning
Any time a trade makes a big spike in the direction you want it to go, fucking take some profits!
Big moves don't mean things are just getting started. More often than not it means things are
about to end.
Becoming a Lone Wolf
The goal of every trader is to become a lone wolf. Block out all noise. Don’t listen or talk to
anyone about your ideas. That’s just a distraction from your thesis. Yes, I share my trading ideas
for education, but, outside of that, I don’t discuss them or talk to ANYONE about trading, ever.
164
If you see a bunch of crypto bros talking trading, it’s because they’re all looking for people to tell
them if they’re right and hopefully agree with them. If they’re doing that that means none of them
are experienced and long-term winners.
Right Idea, Wrong Trade Size
Most my losses in trading come from betting too big and too early, which effects my emotional
state, not from having the wrong trade idea.
Avoid Biased Gurus
Go through your Twitter (now X) feed. If anyone you follow only talks about one side of the
market, then you know they’re bullshit. They don’t know what they’re doing. Unfollow them.
If Your Account is in New Highs, It’s Time to Lock in Gains
Whenever your account starts hitting new or recent highs, that’s when you know you it’s time to
start locking in some gains before the upcoming pullback that always comes 100% of the time.
Losing in Trading is Only a Problem If You Don’t Use a Stop
Loss
A trade that doesn’t go your way is only a problem if you don’t use a stop loss. For most, they
pick a side as if they’re joining a team. They’re willing go down with the losing team, no matter
what happens. This is not how this game works. You can switch teams or sit on the bench
anytime. The goal is not to lose.
Moving On From a Losing Trade
Success in trading boils down to your discipline to admitting/accepting when you’re wrong and
then swiftly taking action to close and move on from those trades, without it affecting your
mental state and ability to think clearly on the next trade because you were just defeated.
Everything You Read or Hear Has a Bias
Anytime you hear investment advice or thoughts from anyone on Twitter (now X), CNBC, or any
other source, 99% of the time it’s just the biased opinion of what they want/need to happen
because they have an investment in the asset. Usually, it’s not a realistic view. Trust no one.
165
It’s not in the interest of CNBC, HODLers, the FED, or the government to talk about real risks,
truth about the economy and inflation, etc. If they did it would cause panic and collapse the
system. So, it’s understandable. But don’t listen and think it’s necessarily reality.
Slow Times
It's the slow times that really crush traders. They try to make something out of nothing and just
burn through capital with losses. By the time a good setup rears its head their cash is low and
their confidence is even lower. Because of this, they miss it, only further destroying their mental
state. Slow times can happen sometimes three, or even upwards of six, months out of the year.
When it’s a slow time, often best trade is no trade.
MIC DROP…
Fous is out. I truly appreciate you for reading this book. I’m proud of you that you had the
discipline to make it this far. With that said, I think you have potential to do something great in
your trading career. Just remember… the most important thing for you to do is slow down.
Rushing in this game is your worst enemy, but you might just have to learn that for yourself as I
know we’re all greedy fucks. This was especially me when I was 20 and just getting started (lol).
Man, I was a greedy little fucker. I wanted to get rich so bad and so fast. But with a lot of
patience and hard work and thousands of lessons along the way, I finally made it. And maybe
you can too.