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Big banks and financial advisors do NOT want you to know this.

You.

You need to share this article. The big banks and prop shops DO NOT want you to know this simple trading rule.

If you'd prefer to read a summary, then you're in luck. I will tell you the secret to buying volatile assets like Bitcoin (BTC), Ethereum (ETH), and Dogecoin (DOGE) at their all-time high, and still making money.

This strategy also works with stocks, like NVIDIA (NVDA), Super Micro Computer, Inc (SMCI), and leveraged assets like TQQQ.

But first, a thought experiment...

Why would financial advisors and big banks not want you to know this simple trading rule? 🤔 The answer might shock you. We'll discuss at the end.

The Lie They Sold You: "HODL"

If you browse forums like Reddit, you'll see every investor say the same thing over-and-over again...

  • HODL! (Hold on for dear life)
  • Diamond 💎 Hands 🙌

And a bunch of other crap that's designed to make you lose money.

Don't get me wrong. If you're throwing money into your 401K and buying ETFs like VOO and SPY, then buy and hold is an excellent strategy.

It's one of the best.

Buy if you're buying Bitcoin or NVIDIA and your plan is for them to go straight to $1,000,000, then I also have a bridge to sell you.

We know this will (likely) not happen. And, if your goal is to buy these assets at their all-time highs, then you are very likely to lose money when they pullback.

History doesn't always repeat itself, but it often rhymes...

"Buy and Hold Bitcoin" from October 09, 2021 to October 09, 2022

Now, if you implemented SIMPLE trading rules, you could get exposure to these volatile assets easily, and still make a lot of money.

And, you'll also dramatically reduce your risk.

As simple as it sounds: Buy low, sell high

Below is an example of simple trading rules you can use to buy volatile assets at their all-time high and still be profitable.

Buy Condition: If I have less than $100 of Bitcoin OR my Bitcoin positions are down 20% or more, buy 20% of my portfolio value in Bitcoin
Sell Condition: If my Bitcoin positions are up 10% or more, sell 5% of my portfolio value in Bitcoin

With these two rules, you'll go from making devastating losses, to modest gains. For example:

"Grid Trading Bitcoin" from October 09, 2021 to March 23, 2024

Discussion

Now, these rules are no guarantee. If Bitcoin crashes to $100, you're still going to lose a lot of money. You'll just lose less than you would've lost if you bought and held it as a lump sum.

Similarly, if Bitcoin does go to $1,000,000 tomorrow, then you would've been better off buying it all in a lump sum.

But it's important to recognize the risk of doing such a thing. If you can afford to hold on to Bitcoin if it revisits its low, then by all means.

But if you're more risk-averse, or your goal is to try to make the best decisions possible, then you need to learn how to implement simple trading rules like the above.

Now, why would the big banks and prop shops not want you to know how easy it is to implement simple trading rules that work really well?

Maybe its because the more knowledge you have, the less you'll need their financial advisors...

Maybe its because they NEED you to think that its too hard, so that you can hire someone to do it for you.

But, do these rules look that hard to you? You tell me...

 

Disclaimer: The content provided in this post is for informational purposes only and is not intended as financial advice or a recommendation to buy or sell any securities. I am not a financial advisor. The insights and analysis shared are meant to demonstrate the capabilities of NexusTrade in automating financial research. It's important to conduct your own due diligence and consult with a professional advisor before making any investment decisions.

 

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