Why You Should Never Trade Breakouts (Instead Do This)

[00:00:00]Please avoid longing at the top. Worst case scenario, you don't lose money and you don't make money and that's a good thing again. And then maybe wait for it to go to 68 to short. So, again, I I just wanted to teach you guys a lesson because the rule number one of actually becoming a profitable trader or stage number one is stopping the bleeding and stopping the losses that you've got into the market. It's much much more important to not lose money than make money. And trust me, like I always like have jokingly said, like even when I had like uh went into a show that is like a competition amongst traders. Had I not taken a trade, again, I wasn't allowed to allowed to do so because they wanted some entertainment and they wanted us to take trades. But, funnily enough, I could have not taken a trade, was at no loss or no profits, and the other team would have still lost because they lost money with their trade. So, again, rule number one of trading isn't not to lose money. A lot of you guys, unfortunately, focus on making money rather than uh I guess not losing the losing it. And also, a lot of you guys, unfortunately, only become and that is the pure beginner mindset. A lot of you guys only only attempt to take uh longs and like randomly, it pops up to you in your mind that you want to take a long when Bitcoin is pumping. And vice versa for shorts. Like nobody ever says or no no beginner ever says, "Oh, let me buy Bitcoin uh or long Bitcoin again uh because we're hitting the anchored view up, faking out, shorting, or uh trapping out the shorts, reclaiming those level."

[00:01:30]Nobody ever says this. Like all of a sudden, everybody wants to long Bitcoin when it's pumping and has pumped already. So, again, you're missing the point of how to extract money in the market. Especially, again, like think about even mathematically, guys, for anybody who has done like grade eight basic math. If I tell you that Bitcoin, the majority of the time, it's always or again, usually range bound. And again, we can take this for as an example. We literally was an hour uh we've been range bound for almost 15 days. So, think about it logically.

[00:01:59]Again, just pure math here. Like, if I tell you that Bitcoin is currently ranging for 14 15 days, and I'm speaking about those who would love to actually become profitable traders, disregard Bitcoin. I'm I'm not talking about Bitcoin now. You could You can actually become profitable with any sort of asset. And by asset, I mean any tradeable asset, stocks, whatever you want to trade, gold or oil, whatever.

[00:02:20]If I tell you that the majority of the time assets I mean I mean are range bound. They usually move up and down, fluctuating. Especially if you add the volume profile, you can see how it's very very tightly range bound between the value area high and low. So, it really ever actually breaks and I mean breaks above value. Again, clearly it's been stuck between 62 and 64.7. So, mathematically, realistically, if you're actually trying to long after it has already pumped, you're more likely going to be buying at the tops and at the extreme side of the pump before a dump. Not because you're unlucky, not because the market hates you, not because the market is manipulating it against you, purely based off of the idea that if it's actually range bound, and you're always attempting to long when it's moving upwards, it will be you entering and then it rotating lower and just casually moving up and down for 14 14 days not doing nothing. So, instead of actually fighting it and trying to catch the one-off scenario, because again, guys, at one at any moment of time, any of the so-called breakups or break up breakouts or breakdowns, at any moment of time, one of them would be actually a strong move that would move the market lower, much much lower, or much much higher.

[00:03:40]But, instead of trying to catch this one-off scenario in like in literally a month or 14 days, why don't you be the smart person who says, "Okay, I do like Bitcoin, but I should stop liking it."

[00:03:51]Again, you can keep your investments, but if you want to become a profitable trader, somebody who works for a living, who generates income daily, weekly, monthly, stop caring about Bitcoin when you're trading it, and just blindly and plainly apply a simple strategy. Again, I teach you guys some of them, but apply a simple strategy where you just purely trade based off a little side or a little range where you long or attempt at least to long some sort of a drop and short some sort of a pump. Like again, mathematically I got Again, it's easier said than done, and in retrospect, everything is simple, but just take it for the sake of a I mean, being a an example. Look at this, like even if you had attempted to like long some breakdowns, like move lowers the the drops that were within this one. I mean, that was a very, very nice one, but if you had attempted to take four of them, for example, let's say you lost two and you won two, lost one and won three, you would have still made money because the extreme move from lower to higher is like 5%. So, worst-case scenario, let's say you attempted to long four of those like uh trades, you may have lost or you would have have Again, let's say the the maximum extreme example of you losing three uh three and winning one. Again, if you understand basic math and you understand risk management, again, you could have and would have lost 1% three times and then made one I mean, more than 1% once. Uh for example, let's say uh let's say that you actually uh let me quickly do an example where you try and attempt three risk-to-reward ratio. You would have been broken even, losing three and winning only once.

[00:05:30]That's assuming that you actually lose three, not win two and lose two. And that's assuming that your long wouldn't then be held post breakout. So, again, I want you guys to understand the pure math behind becoming a real profitable trader. Like you have to leave and migrate from uh your mentality of loving Bitcoin, let me follow Twitter, let me keep up with the CPI, any indicators, fake stuff, and just focus on building a profitable system where you're basically just trading an asset.