How to Make the Most Money Out of the Market

Today I want to give you some market lessons that can be the foundation of your investing strategy and philosophy. I can’t say I am surprised but I am very disappointed at the lack of direction of most market participants. Most people are far too short sighted and have clearly not put in the time or effort required to make a success at this game.

One of my favorite things is telling people what I do and they respond as if it’s easy by saying something like “oh I wish I could do that. Just study charts and make trades.” I don’t care too much and it doesn’t bother me like it used to because the truth is few people understand how hard it truly is to consistently make money in the market and even fewer actually do it.

As Gann wrote in his book Truth of the Stock Tape, people would never attempt to be their own doctor or lawyer without years of rigorous study and investment. Yet when it comes to markets they will happily gamble away their net-worth without a clue as to what they are doing.

I can tell you from experience that this is a game for professionals and those of you that want to make it in the long run would be wise to treat it as such. In fact it is the most lucrative business in the world and people think it’s easy? That does not equate. The top 1% of traders make substantially more money than any other profession you can think of besides maybe professional athletes.

That alone should tell you that the mental bandwidth required between understanding the markets and understanding yourself is very substantial. It takes intense focus, thousands of hours of study, and constant adjustments to even get close to spotting significant highs and lows or finding a 100x.

I can tell you personally, I have paid a steep price for the knowledge I have acquired of the markets. It has taken me to hell and back many times and cost me more money than I would like to admit to get to where I am. Even still, I am no where near the mastery I aim to achieve. I am not proud of having lost so much money to the market but I want you to understand what the market can do to a person and what it takes to come out on top. Without such pain, I would never have learned or stumbled upon the valuable information that I have today. I had an intense desire to WIN after such loss because I knew what was possible. It is the main reason for our success and there is no question about what it costs to get it.

The problem I see today with most market participants is that they do not learn. They either don’t have the desire or they have not experienced enough pain to force them to want to get better. The only way to get better is to have desire to get better, work your ass off, and constantly acquire knowledge.

However, since most are part time market participants they do not put in that time to study. They believe they can come in and make money when things are good and leave when its bad. This rarely is the case as they get in late when things are good and have zero clue how to manage their emotions when they are in the fire. They also have a back up plan like a full time job to relieve the stress if they are wrong.

There’s nothing wrong with this, in fact most people should not be full time in the markets. Most people reading this probably are not and that’s okay, thats why you are here. You will see a lot of people like this in the cycle. It doesn’t mean they can’t do extremely well. Many of them will. But their ability to replicate their success and keep their winnings is very low. Overtime, it will be near impossible for these people to out preform the full time professionals who have put in the time and dedication to be successful.

This is not to get you discouraged. This is simply just to help you understand what it truly takes to win at this game. I see that many people on crypto twitter have a clear lack of respect for markets and the great lessons they can teach you about yourself and about life. They are simply here to try and make a quick buck so they can “leave”. They learned absolutely nothing from 2021 and are back with the exact same attitude. These people have no conviction, faith, or certainty in what they are doing and the market will run them over. I am telling you to avoid this trap at all costs because the people who are just spectators showing up to make money will not keep it.

So how can we avoid this and outperform the part time players even if you are one? I am going to give you some things that may seem mundane or basic but they are the cornerstone to understanding yourself and what you want out of this. They also happen to apply to any field. These are a few keys that I tell people to help them for a baseline for their philosophy. I think its good to give you these tips here since I have been advocating patience as the noise picks up, they should help.

1. Have Clearly Defined Goals

People ask me all the time what should I buy? My answer is always the same. What are your goals? You see this is a very powerful exercise when considering what you should buy because it will immediately eliminate 90% of the options. What I mean by this, is that your goal should be a number and a time.

For example if your goal is to turn 10k into 1 million dollars by the end of the year, then we would have to take a very aggressive high risk strategy. Now, you can go ahead and eliminate investing in BTC,ETH, SOL or any large cap for that matter. You need to 100x your portfolio, you are going to have to take big risk and invest in high risk projects. This narrows you down to low caps, new launches, and memes.

Conversely, let’s say you want to take 10k to 100k in 5 years. This would give you a completely different set of assets to invest in. You are trying to 10x your net worth in 5 years. Still a substantial goal but we can do it on a much less aggressive strategy given our time frame. Now you would likely be looking for fundamental long term buy and hold large caps maybe some mid caps.

So you see you first need to understand your goals and your timeframe and that will eliminate 90% of your investment options. Now you get to do intense research on the other 10% to find what you want.

2. Do The Work

This is pretty simple and straight forward but there is no avoiding it if you want to outperform 90% of people. What I mean by do the work is build conviction in what you are buying. I can sit here all day and tell you why our portfolios are made up the way they are, but unless you actually go and study the project, build a thesis, and understand as to why you are buying it, you simply will not be able to stomach the volatility of crypto. If you don’t know why you are holding something and it corrects 50% you are going to sell the lows.

When you do the work and understand your holdings you will see dips as a blessing at this point and actually buy more while people with low conviction panic. In short, make sure you have conviction and the way to do that is put in the work. There is no short cut, and holding for 100x is only for those that know what they are holding and why.

3. Make a Plan

I don’t think I have mentioned this but I played division one basketball when I was in college. This taught me a lot about life and how to compete at a high level but the point I want to make here is that we always had a game plan. There is some debate around professional sports and whether they are good to watch or not. My opinion is that you should study world class performers in any field. Not to become a professional athlete but to understand what it takes to be in the top 1% of an industry.

Understand how these people prepare, how they think etc. We see what they do on the field but what we don’t see is the rigorous planning and preparation that goes into each game. Everyone is talented out there but what makes the Tom Brady’s is the elite preparation and planning for each game. Knowing what his opponents will do before they do it, and, if they surprise him how he will adjust. If you are ever feeling uneasy about the market it’s because you don’t have a well thought out plan.

Apply this to your investing and you will watch your performance skyrocket. Meticulously plan when you will be in the market and how and when you will be out of the market and why. Then make sure you know the different scenarios, what they would look like and how you would respond.

This is another key that will help you remain very calm under pressure. It’s how the best in the world do it and you should too.

4. Execute

Finally, we have the execution. In theory it’s all simple that much is true but when the pressure is on can you execute? You have clearly defined goals, you put in the work, you made your plan, and now you have to go prove it in the field. This is by far the hardest part which is why you have to prepare intensely. The market is going to do whatever it takes to fool you. If you don’t have a clearly defined plan you will not be able to manage your emotions when it matters most. Make your plan, trust in your preparation and then stick to it. Have the guts to get in the market when you planned and then have the guts to hold on for the ride.

Conclusion

These are 4 steps that can set the foundation of your investing success. I personally have found them to be immensely helpful. They are simple and can be applied to any field but they are not easy to do and it will take work. This is what can set you apart from 90% of other traders.

I want you to understand that you can be successful at this game it doesn’t take a genius, but make no mistake you have to put in the work, and there is a mountain of it.

Thankfully for subscribers, that’s why we do what we do with Digital Asset Research. We do our best to provide you with a general macro roadmap of the markets so that you can make informed decisions based on your trading style whether that be short or long term. We also give you specific sectors and projects within crypto to then maximize your investment goals.

I’m not giving you a 100x play today but I think if you take this information to heart it can be worth a lot more than a 100x.