The Best Trader in the World

The Best Trader in the World

“Life itself is a risky enterprise. Sometimes we fly high, enjoying great success. But then suddenly we fall into deep disappointments and the haunting reality of a failure, leaving our hearts wondering if there is anything worth looking forward to.” – Joe Stowell

There are super traders all around the world. If you don’t know them, I know some of them. They earn their livelihood by trading and they’re financially free. Now the question is: Who’s the best trader in the world? Indeed, the best trader exists. Now, I won’t mention names, but I’ll tell you how the best trader trades.

The best trader doesn’t argue with the markets – he always admits his mistakes. Most people tend to feel they’re right, even if facts prove them wrong. Extremely terrible speculators don’t accept their errors. It’s really a psychological condition that makes a person refuse to think he’s made a mistake, even if reality shows otherwise. Being overconfident in riding a position that’s determinedly negative is definitely not a good thing. Top traders always acknowledge their mistakes.

Likewise, the best trader may use any kind of positive expectancy system including fundamental strategies and anticipate that the market will move in a certain direction. If the price movement or fundamental figures happen to be against his expectation, he’ll smooth all his positions immediately. No arguments, no hope. Financial markets have no mercy upon anybody. If things go against you, then get out of the market without wasting time. Every good speculator I’ve studied is really good at cutting positions that seem to go determinedly against them. Yet, whenever the market proves them right, they run their gains for a considerable amount of time.

The greatest trader accepts the uncertainty that can affect any open orders; they even do this before they open the orders. Uncertainty remains our ally, since speculation is a game in its own right. Negativity is also included in the game. The best trader doesn’t feel sad when a trade goes negative, nor does he feel too happy when a trade goes positive.
Using a System Profitably is Conditional
Are you a successful trader? Did you like the results you produced as a trader in the previous year? If not, what errors did you make and how can you improve your results henceforth? You may need a trading system that takes care of some cogent factors contributing to profitable trading. Do you have these factors in mind? Please consider some of them:

1. Do I have a rule to follow in my speculative activities? A trading strategy should be approached with the level of seriousness and enthusiasm with which one would approach any high level endeavor or business. The entry, exit, position sizing and other rules of this strategy must be followed to the letter.

2. Do I have a worst-case emergency plan? A good system should have a rule (or rules) that can deal with any adverse movements that can affect an open trade, as well as a rule that makes you exit quickly if things are no longer going in your favour.

3. Do I have a positive expectancy system that can enable me to survive the current type of market? A good system ought to make money in good market conditions and make as little drawdowns as possible in bad markets conditions. It should have positive expectancy incorporated into it, which means that at least, two dollars should be expected for each dollar that is being risked. In other word, you should be profitable on a long-term basis even with only 30% accuracy.

4. Do I have a technique that will continue working even if the market conditions change without warning? Yes, a good trading system ought to survive all market conditions. A good trading system can work well in bull or bear markets. But maybe you should stay out of extremely consolidating markets! You just need to stick to its rules.

5. Do I even recognize the current type of market? It helps to be aware of the type of the market one is trading and the current prevailing condition of the market. This can help you make informed trading decisions.

6. Do I constantly condition my mindset in a way that makes me execute my trades flawlessly? You need to work on yourself. There are traders who use position sizing that is far bigger than the one recommended. Some enter additional trades based on analysis that is completely different from the rules of the system. Some do not even use stops at all – contrary to the system rule! A trader using a good system should learn how to control herself/himself and do the right things in the markets rather than doing things that would satisfy human emotions.

If you answered no to any of those questions, you have clues about why your results in the past have been undesirable. These, by the way, are only a few of the questions you could ask yourself. If you could take the factors above into consideration and work on them successfully, then you may find that trading can indeed be profitable.

Conclusion
When the markets go in our favour, we feel like a champion. We assume that we are a super trader and that we’re smarter than other traders. In most cases, only traders who have experienced the good and the ugly sides of the markets and survived them all are those who are really qualified to be our mentors. You need to forget about your past and look forward to a brighter future. It’s important that you overlook your past failures and press forward.

This chapter concludes with the quotes below:

“Stephen Covey says – ‘Live out of your imagination, not your history’. Look forward, not in your rear view mirror – or you’re sure to crash. It’s not what happens to you, it’s how you handle it that counts. Your mistakes are completely separate from who you are as a person. Take pride that you’re moving one step closer towards your goals. Don’t cripple your future growth by shooting yourself in the foot because you made a screw up.” – Louise Bedford

“One of the main issues that new traders have is that they have expectations of huge rewards in a short period of time. ‘I’ll take my $5,000 trading account and turn it into a million dollars in a year, and tell my boss where he can go!’ That rate of return is a bit unrealistic. By increasing your account size just a couple of percentage points a month, the power of compound interest will make you wealthy, but over a long period of time. Trading as a career is a marathon, not sprint. Those who try to make too much too fast often over-leverage their account and take on unnecessary risks by doing so. One or two large losses can wipe out a few weeks or months of good gains! If you do that you have ‘worked for free’ as your account takes these major drawdowns. Does anyone want to work for free? I know I don’t.” – Rick Wright (Online Trading Academy)

 

This text is taken from the book “Unlock Your Potential with the Realities of Trading”


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Azeez Mustapha is an experienced author, trader, markets analyst, signals strategist, and funds-manager.

Perfect Crypto Investment Strategies – Part 1

Perfect Crypto Investment Strategies – Part 1

A LONG-TERM CRYPTO INVESTMENT STRATEGY

“…Cryptoassets were the biggest institutional revolution since the Industrial Revolution and they represented the investment of a lifetime.” – Van K. Tharp, PhD

What is the idea? What crypto coins should you buy?

For instance, you may want to invest in popular DeFi tokens.

According to John Hargrave, for the vast majority of DeFi projects, the layer is Ethereum. As he’s said again and again, the easiest way to invest in DeFi is to just buy and hold Ether. It’s the foundation of DeFi, and it’s the foundation of a smart DeFi investment portfolio.

Nonetheless, popular DeFi coins serve unique purposes and they can deliver great returns in future. So you may not want to restrict your opportunities to ETH only. Yes, there are tremendous opportunities to make money from other coins.

One of the DeFi tokens that stands out is Uniswap (UNI), created by Hayden Adams in November 2018. From September 2020 to May 2021, UNIUSD rose from $4 to $44. But that is just the beginning, for price is bound to rise from here, following the recent large bearish correction. Uniswap facilitates automated transactions between cryptocurrency tokens on the Ethereum blockchain through the use of smart contract. In 40 years to this time, UNIUSD would be worth at least, $400,000.

This is just one of the numerous examples. You need to pinpoint cryptos whose value will go upwards exponentially in future.


FINDING THE NEXT UNICORN
Buy all the top 100 crypto coins.

Look at the top 100 coins. They are the 100 biggest coins in the world by market capitalization. That means they are currently popular, and it also means a lot of people have invested in them.

Most top 100 coins are promising, having excellent purposes and bright future.

Depending on your financial status, you can invest $1000 in each coin, making a total of $100,000.

Or you can invest $100 USD in each coin (a total of $10,000), or you can invest $10 in each coin (a total of $1000).

Then hold the coins forever.

No matter how expensive a coin is, like Yearn. Finance (FI) which is currently around $39,658, but which once reached a high of $90,000. Buy it.

No matter how cheap a coin is, like SHIBA INU (SHIB) which is currently around $0.000007151, but which once reached a high of $$0.000040151. Buy it.

THE ULTIMATE FATE OF THE TOP 100 COINS
Some coins will become crashing failures, and some coins will become roaring successes. Some coins will perform above expectations and some will perform below expectations. Some coins will neither make money significantly nor lose money significantly.

Within 2 years or 5 years or 10 years or 20 years, some of the coins that are currently in the top 100 would have been pushed out of the top 100, and some would remain within the top 100. Some which are below the top 50 or the top 80 would have been pushed up to the top 10.

By then, some currently unpopular coins would have become household names, and extremely successful.

On the other hand, some coins would have disappeared or become totally worthless or useless/seriously unpopular. That will also happen.

However, the coins that make money will by far, compensate for the losses you have on the coins that eventually prove worthless. The colossal gains you would make from the successful coins will make your losses on the eventually useless coins to pale into insignificance.

How viable is this investment idea?
A CASE STUDY IN STOCK MARKETS
James Altucher recently released an investment newsletter in which he mentions this:

Make a serious research to identify an industry with exponential growth; then buy many (if not most) stocks in the industry.

Since a man named Gordon Moore declared that computing power would double every 2 years, that prediction has proven to be correct, even 56 years later.

What did that mean if you were alive then? It means you could invest in computer companies.

For you to understand, please let me quote Altucher directly:

“Let’s say, from 1970 to 1990 you put just $1,000 into each of the next 100 computer companies to go public. And then you ignored them until today.

Which means you would invest $100,000 in total ($1,000 into 100 companies).

Many computer companies went bankrupt during this time. Do you remember Eagle Computer. Or Commodore?

Or the ElectroData Corporation? How could you forget the one-time third-largest computer manufacturer? The maker of the DataTron 203 that shipped for a price as cheap as $125,000. It weighed 3,175 pounds and had about 4k of memory.

Many companies went bankrupt. But how could that be if the computer industry was growing exponentially??

Let’s say that out of the 100 companies you invested in and forgot until this moment, 98 went bankrupt. Let’s say only Microsoft and Intel survived. The real facts are that many more than 2 of the 100 survived, but this is an extreme example.

So out of your $100,000 invested, $98,000 went down the drain. Only 2 companies, or $2,000 of your investment survived. That sucks, right?

Wrong! If you had done this strategy, you would have $3,500,000 today. In fact, you would have a lot more because many more than just two companies survived. But again, I use this as an extreme.

If you invest now in an exponentially growing industry, even if you invest small amounts, you will make an enormous amount of money. This is no joke.

But, you might say, “An industry like computers only happens once every 50 years.”

Because of the rise of the computer industry, computers now create exponential industries. There are many exponentially growing industries.” (Source: Jamesaltucher.com)

TIME TO GET RICH SLOWLY
You can see that the crypto investment strategy explained in this text works in any major industry with potentially exponential growth. It has proven to work in stock markets, crypto industry, etc.

Let’s take a factual, real example. I invested $200 in 2 coins ($100 for each coin), and less than 3 years later, one coin has gained over $11,700 for me; while the value of the invested $100 on the other coin has depreciated to $26.

“If you invest in crypto, then expect to live with huge volatility. No major institutions that I know of, however, have sold off their crypto investments,” says Dr. Van Tharp.

My $200 investment was then worth $11,726. Was that bad?

Actually you cannot lose more than what you have invested in a coin, but you can really gain more than what you have invested. Even that $74 depreciation on the second coin wasn’t a real life loss unless I cashed it out.

That is the beauty of crypto investment. Good, viable coins will eventually go up, irrespective of crypto winters and storms along the way.

I am a living witness to this truth as I myself began to get my feet wet in the crypto industry years ago. Some coins like BNB and ADA have paid handsomely, while some coins like ATB and ETN have become failures. Some coins like XRP and TRX have neither made serious money nor lost serious money.

Ultimately, you will be richly rewarded by the cryptos that make money.

CONCLUSION
This investment idea is great if you buy and hold forever. That is the best way to make money. Nonetheless, there is a killer short-term crypto investment strategy that will be revealed in the next article in this series.

That strategy enables you to make money by taking short-term positions in crypto markets, focusing on the top 100 cryptos only. The accuracy of the strategy is stunning and it is one of the strategies we use to generate signals in our Telegram channels.

Note: Learn2.Trade is not a financial advisor. Do your research before investing your funds in any financial asset or presented product or event. We are not responsible for your investing results

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  • The Lowest Trading Costs
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  • Award-winning Cryptocurrency trading platform
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Highly volatile unregulated investment products. No EU investor protection.

  • Over 100 different financial products
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  • Trade top Cryptos such as Bitcoin, Litecoin and Ethereum plus more
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Author : Azeez Mustapha

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Azeez Mustapha is an experienced author, trader, markets analyst, signals strategist, and funds-manager.

First Solar share price to heat up on Democrat green infrastructure push

First Solar share price to heat up on Democrat green infrastructure push

First Solar (FSLR) has jumped 5% following yesterday’s 9% loss as the likelihood of a Democrat-controlled US Senate looms, further improving the outlook for renewable energy stocks.

With one  Georgia senate seat already called for the Democrats and a second looking highly likely to be captured by president-elect Joe Biden’s party, equity markets are repositioning accordingly.

Solar panels maker First Solar has recovered reasonably strongly since the March 2020 meltdown in markets. However, the gains have been nowhere near as striking as those seen among other renewable energy stock plays, notably in the electric vehicle (EV) segment.

First Solar was up 77% last year but that compares to 740% for Elon Musk’s Tesla and an even more eye-watering 1,100% for China’s NIO EV automaker.

Goldman sours on First Solar

The reason for the sharp decline in First Solar’s share price yesterday was the downgrade from Goldman Sachs, which it is worth digging into.

Goldman sees earnings per share (EPS) declining by 17% this coming year, with 2020 representing “peak” EPS for the company.

By way of contrast, the investment bank’s brokerage arm thinks its peers will grow EPS by 20-30% in coming years.

Part of the explanation for that is pressure on the selling prices for its modules due to the expiration of Section 201 solar tariffs, with further pressure on prices coming from increased module supply across the industry.

Goldman sees better mileage for returns from First Solar competitors such as Enphase Energy, which it has upgraded to a buy. Meanwhile, it has cut the price target for First Solar by 20% on Monday’s closing price, to $81.

We think Goldman has got that all wrong – here’s why.

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Election game changer

The election results from Georgia have changed the price dynamics for the alternative energy complex.

Since Biden’s presidential election victory renewables have pumped higher, with Invesco Solar ETF (TAN) returning 234% by year’s end – further highlighting the laggardly nature of First Solar’s performance of late.

But we think that First Solar has some catching up to do and the new certainties flowing from the Democrats taking control of the three branches of the US government will lift all boats in the renewables sector.

In addition, the output cut by the Saudis and the expected second-half recovery in the global economy, could see a sustained rise in crude oil prices. A higher oil price improves the competitive position of solar energy for energy users.

JP Morgan agrees with us. It raised its price target for First Solar from $101 to $105 on 23 December, on the basis of the passing of a stimulus bill by Congress and increased solar installation demand from China, which won’t be met by home-based manufacturers alone.

It should also be noted that First Solar doesn’t just manufacture the photovoltaic (PV) modules, but also the solar power systems which use them. It also has a third leg to its operations in the form of the operations and maintenance services it provides to end users of these power systems.

Green economic nationalism to light-up First Solar

There’s another important factor weighing in First Solar’s favour and that is the fact that it is the largest manufacturer in the US.

The top four solar panel makers are all located in China (JinkoSolar, JA Solar, Trina Solar and LONGi Solar). In fifth place is Canada’s Canadian Solar and in 10th position is First Solar.

As the top US maker we expect the Democrats to encourage orders originating in the US to be funnelled its way – economic nationalism isn’t just a Trump thing.

Add to that the momentum behind the environmental, social and governance (ESG) investment theme and it provides further ballast for solar stocks.

First Solar Q4 2020 results are due on 18 February, so we will get a better handle at that point on how sales are going and whether it looks like Goldman will be right about weaker-than-expected EPS growth.

Those that buy now looking for short-term trading profits might consider selling before the results, while investors taking a somewhat longer view should hold through any disturbance with an eye on the bigger picture outlined above.

But the ultimate determinant on EPS will come from the expiration of tariff protection as Goldman correctly intimates, but that’s not due to happen until 2022 – plenty of time for the Biden administration to mull an extension or other measures to bolster US-based manufacturers. The tariff regime was introduced by President Trump in 2018.

The 12-month rolling forecast P/E for First Solar is 25.8 according to Stockopedia, while on operating margin it is ranked 10th out of 31 companies in the renewable energy market, meaning that of its peers it is among the more likely to see sales revenues fall through to the bottom line, so that’s another reason not to be so pessimistic about EPS.

First Solar registered its all-time high at 302 on 12 May 2008 and is currently priced at $97, up 5.3% at the time of writing.

first solar price chart
First Solar 1-day candles, 6 January 2021 (chart courtesy Stockopedia)

First Solar is sitting nicely above the Ichimoku clouds (see chart above), other than in September and October, indicating firming support at current price levels  and into the near future.

This stock is a buy.

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  • The Lowest Trading Costs
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  • Award-winning Cryptocurrency trading platform
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Highly volatile unregulated investment products. No EU investor protection.

  • Over 100 different financial products
  • Invest from as little as $10
  • Same-day withdrawal is possible
$100 Min Deposit
9.8
  • Trade top Cryptos such as Bitcoin, Litecoin and Ethereum plus more
  • Zero commissions and no bank fees on transactions
  • Around the clock service with support in 14 languages
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8.5
  • Award-winning Cryptocurrency trading platform
  • $100 minimum deposit,
  • FCA & Cysec regulated
$100 Min Deposit
9.8

Author : Gary McFarlane

Gary McFarlane

The author is the financial editor at Finixio, the publisher of buyshares.co.uk, stockapps.com, learnbonds.com and insidebitcoins.com. Gary was the cryptocurrency analyst at the UK's second-largest investment platform, interactive investor, from 2017 to August 2020. Gary is the winner of the Best Cryptocurrency Writer 2018 ADVFN International Awards