Name Price24H (%)
Bitcoin (BTC)
$42,578.00
-0.55%
Ethereum (ETH)
$2,957.25
-2.11%
XRP (XRP)
$0.93
0.07%
Litecoin (LTC)
$156.09
-1.67%
Peter Brandt: Legendary Trader and Hard-Core Experience Ente...
Knowledge

Peter Brandt: Legendary Trader and Hard-Core Experience Entering the Crypto Market (Part 1)

Peter Brandt is known as a legendary trader with 43 years of experience trading in the financial markets using a classic model. For Bitcoin in particular and the cryptocurrency market in general, he also paid special attention, regularly making crypto technical comments on his personal Twitter page. Here are some of the extremely valuable experiences he shared when he entered the crypto market.

  1. Loss limit is the most important Trading factor. Capital is the inventory of a trader. If you lose the goods, you cannot do any business.

  2. When the trader analyzes “false”, it is called the experiential prediction. When the trader is “wrong”, it is called a loss. Huge difference.

  3. There are two important factors to any order: trend and timing. Just be wrong 1 in 2, the command will be wrong. I want to focus mostly on the moment so that if I am wrong about the trend, my losses will be less.

  4. I am old enough to see the banks shut down in 1929 (Great Depression). There will come a day when the banks (crypto exchanges) will be closed when the trader wants to withdraw Tether. Short tethering at any price near $ 1 is a good trade.

  5. If the price of BTC reaches $ 100,000, traders using the moving average will outstrip traders using confusing tools (Bollinger Bands, RSI, Fibs, charts, trendlines, …) and will go beyond extreme period traders involved in shitcoin.

  6. There is a serious mistake in the mindset of many novice traders that if a sufficient number of traders see the same price pattern then it becomes true. Actually, the opposite is true. Chart patterns detected and traded by too many traders will fail.

  7. If you feel the need to trade, the desire to enter, and the urge to always enter the market, then go to Las Vegas to gamble. At least you will get a cheap steak and drink for free after losing money.

  8. Not bearish does not mean bullish.

  9. 4 things below affect very negatively on the performance of the trade according to the chart:
  • The feeling of having to guess correctly
  • Win rate obsession
  • The obsession about the possibility that a model will succeed (if it means something)
  • Rejection of previous vertices
  1. Most of the really good traders I have come across get net profits from just 15% of their trades. One of the most difficult parts of trading is to survive the remaining 85% of the trade (with small losses and small to moderate profits) to get the other 15%.

  2. If your goal is to become a pro trader, the question you should be asking is not “How much profit did you make this year?”. The question you should ask is, “How will we survive in the market for the next 30 years?”.

  3. A novice trader must first learn how to lose, before learning how to win. Losses are a fundamental function of learning to preserve capital.
  4. A trader should make a statement about the different time frames of a market. If the timeframes go in the same direction, it is time to trade, otherwise, stand outside and watch.

  5. A fact of trading – a trader always places too large volume when predicting wrong, and too small when predicting right.

  6. During my 43 years of trading derivatives, good trades naturally find me and are very “confident” in themselves. Studying chart patterns to find a trade is really pointless.

  7. All novice technical analysts seem to be obsessed with pattern reliability. As for me, I’m only interested in a price pattern that gives me a tie. (That is to say, the price pattern with just one draw is good, don’t expect it to be successful and profitable).

  8. USDTRY is a great example when a chart has volatility and offers different possibilities. The isosceles triangle is defined as the “pattern of indecision and confusion”. I only trade when a break occurs and stay away from sideways markets.

  9. The formula of trading disaster:

FOMO (fear of missing out) + FOL (fear of losing) = Fire Account

  1. I firmly believe that the fundamentals drive prices, but like Bloomberg and CNBC I can only tell what the fundamentals mean after a year when the trend is over.

  2. There are many streaks that new traders enter the market or follow, a few of them:
  • Win rate – the obsession needs to be correct
  • Look for the second command with the same setup as the first (meaning the market is always changing, the second setup is like setup 1, it is unlikely to succeed)
  • % of the time a pattern will be successful
  • Catch falling knives
  • Look for a trade (meaning don’t look for a trade, good trades will automatically appear and find us)
  1. Are you willing to wait weeks without trading just for a nice trade to appear? Patience will pay your bill every month.

  2. Traders are not looking for good trades – good trades find traders. The best trades will appear on their own.

  3. There is a huge difference between guessing correctly and making money. Traders obsessed with having to guess “right” often lose money in the long term.

  4. If you are going to ask me how much money I plan to make on the next trade or series, next week, next month, or next year I have to answer: “I don’t know.” I cannot control the outcome of the trades, I can only control the trade mine.

  5. People often ask me about the success rates of price patterns. Here is the FALSE QUESTION! I asked myself the following: What is the possibility of:
  • Can I quickly move my stop loss to breakeven?
  • Can a target be reached unhindered?
  • The success rate of a pattern is undetermined.
  1. Correctly detected classical patterns will demonstrate the power of buying and selling in the market. The price pattern represents the energy geometry of supply and demand and the asset is analyzed.

  2. Distribution is not the last stage of a trend – following the distribution will be panic when bulls say “I don’t care where the price is going, I need to get out of my position. just to stop the pain. ”

  3. Do you ever get the feeling you can’t even have a winning trade? I am an old friend of this feeling, although fortunately it never visited me this year.
  4. Never chase a signal. There will always be another day, another market. What if you miss a price step? The market is still there, the problem is whether you survive long enough to trade it or not.

  5. Bitcoin is for trade, not for worship. Watch out for crypto enthusiasts, so you don’t have to worship the wrong saint.

<To be continued…>

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