How to Crush the Crypto Market, Quit Your Job, Move to Paradise and Do Whatever You Want the Rest of Your Life
By: Daniel Jeffries
Tags: Trading, Crypto Market, Cryptocurrency, Finance, Bitcoin

First off though you’re probably wondering who are these people?

My criteria was simple. I wanted to meet traders who started with between $1,000 and $45,000 and turned it into millions of dollars in under two years.

The second criteria was that they actually did it. Like Tim Ferris said in 4 Hour Work Week, no pretenders allowed.

And I didn’t want people who just bought and held in the biggest parabolic boom in history. I wanted traders, people who made more than buy and holders.

Yes, that is possible.

Still you probably don’t believe these people exist or that it is possible.

It’s ridiculous right? Nobody can beat the market.

And yet I’ve studied with five different traders who’ve done just that, believe it or not.

Actually I don’t ask you to believe anything because belief is the death of intelligence. All you need to do is look, listen with an open mind, learn and then decide for yourself. Every single one of these people, four guys and one gal, stressed the need to transcend your limiting belief systems and believe it can be done before you do anything else.

Jordan Belfort, the Wolf of Wall Street, said “The only thing standing between you and your goal is the bullshit story you keep telling yourself as to why you can’t achieve it.”

That’s just the thing. Most people don’t believe it’s possible or they think the people who did it got lucky.

If you believe that you can or you can’t, you’re right. I used to think that was some hippy dippy crap, but it turns out it’s literally true. If you don’t think it’s possible you can’t even get off your ass and get started.

But this is not going to be some power of positive thinking new age nonsense puff piece. Positive thinking only gets you to the starting line. You can visualize a million dollars and a Lamborghini all you want but that’s not going to get you there. Only hard work, discipline and study will. Making mistakes and learning from them will.

But first you have to think it’s possible.

And yet even after reading that I’ve met and worked with five people who’ve done this, most people will write it off as impossible. To do that they have to actively deny evidence to fit what they already believe. That’s how belief systems work. We’re wired to think we’re right even when we’re wrong. It’s crazy but it’s true.

If I walk into a room of people and ask them who’s a better than average driver, 90% of them will raise their hand. The other 10% won’t raise their hand because they know I’m asking a trick question but secretly they believe it too. Everybody does.

Since it’s impossible for everyone to be better than average there’s only one conclusion we can come to here.

Most people are lying to themselves and to the world.

There’s reality and there’s what you think about the world. Usually they’re not the same thing. When your beliefs meet reality, reality wins every time if they’re not in sync.

You might think you can eat whatever crap you want and never work out but after eating burgers and fries for forty years you will learn your last and hardest lesson.

So that’s step one from every single one of these legendary traders.

Get your mind right.

Learn to see yourself truthfully.

If you can’t do that, you won’t get anywhere. It’s like those old long division problems you hated in school where you got step one wrong and the other fifteen steps were wrong automatically.

You can’t start from the wrong premise and hope to come to the right conclusion.

How do you learn to see yourself more clearly?

Ask questions.

What are you good at? What do you suck at? When you fail, why did you fail? Be relentless in answering these questions. Did you over trade? Were you in a bad state of mind? Were you trading drunk? Did you use too much leverage? Were you seeing phantom patterns that don’t exist? Do the patterns even work at all? If so which ones do and which ones don’t?

Why do you just automatically assume that because you saw a bull flag on Twitter or in the bible of technical analysis it’s true? Maybe bull flags are crap? Ever think of that? Who told you they were true? Accept nothing at face value until you test it for yourself. If a pattern continually fails you, assume it’s wrong and move on until proven otherwise. Be flexible. Be adaptable.

If you want to get good at anything you have to learn to see your strengths and weaknesses accurately.

If you don’t start with the truth you can’t possibly get anything else right.

First the truth, then everything else.

Teach a Man to Fish

Step two that every single one of these traders emphasized is that you have to learn this yourself.

If you’re out there looking for a signals group so you can buy like a robot, you’ve already failed. You can join a group if you like but only if that group is there to teach you to fish not keep you dependent on the group.

What do I mean by that?

Give a man a fish and he eats for a day. Then he promptly starves to death waiting for the next free fish. Teach a man to fish and he eats for a lifetime.

You want to become the master yourself not sit at the feet of masters your whole life picking up their scraps.

This is an active process. You have to get in there and learn by doing.

You have to lose money, make money, lose it again. You have to ride the insane emotional waves as you win big and then lose it all. You have to think you’re a God one day and the market is your personal ATM only to get taken out to the woodshed and beaten with a rubber hose. That’s how this works. Nobody can teach you everything you need to know. You have to do it!

But that doesn’t mean we can’t learn the basics right here, right now. Even if we can’t fully understand or appreciate or believe them yet, we can get them into our minds where they can take root and start to grow and flourish.

Sometimes we’re not ready to understand something yet. They say the fool hears the truth a million times and never gets it but the wise man only needs to hear it a hundred thousand times before he gets it. Nobody gets it the first time or the second or the fiftieth.

But the key principles sit dormant in our unconscious and suddenly come back to us somewhere down the road when we’re ready for them.

We’re ready for them when we’ve done the work ourselves. Do the work!

Then one day you’ll say ah! That’s what he meant! I get it now.

Lastly, it’s worth noting that not all of these folks are exclusively crypto traders. In fact, most of them trade all kinds of markets.

But every one of them will tell you that the best trading systems work across markets.

Trading small cap stocks on the Nasdaq or commodities like gold and oil is the same as trading Bitcoin and Litecoin. They just move at different speeds, have varying liquidity and efficiency and some of the ways to value the fundamentals very wildly.

The markets change their external manifestations but human psychology never changes and the markets are driven by very human hopes and dreams and fears.

Now that we’ve started to get our minds right, let’s get to the good stuff, the stuff you’ve all been waiting for since line one: the killer trading strategy.

Crushing the Parabolic Swing Trade

This lesson was one of my favorites and it’s dramatically changed my trading.

In all markets, in all times, there is one trade to rule them all.

The parabolic swing trade.

That’s when a small, virtually unknown stock or cryptocoin takes off on a wild ride to glory. It goes up 10X or 20X or more. It starts at 20 cents or $5 and climbs to $30 or $40 or $50. In crypto it gets even crazier. A coin that was trading at $1 a few years ago might now be trading at $100s or $1000s of dollars. The crypto market is unlike any other in terms of how far and how fast it moves. But again, the principals are the very same.

I’m not going to lie. This strategy can and does result in financial ruin for most traders. High risk. High reward.

When government officials say Bitcoin is “highly speculative” through gritted teeth, they don’t mean that as a compliment. They mean to strike fear into the heart of traders everywhere. Stay away. Don’t touch. Danger!

But highly speculative is where the big money is, no question about it.

Every trader who has ever cashed in big on the markets was a gun slinging speculator. While the sheep of the tribe think that’s a bad thing, it’s the early risk takers who grow markets when nobody else is willing to touch them. Speculators make the market boom, so that it reaches an equilibrium and serves the masses later. That’s how it works and that’s how it’s always worked.

For every ten thousand people who turn back when they see the warning sign at the mouth of the dark forest, there’s an Indiana Jones who straps on his whip and his leather jacket and strikes out into the unknown. He’s looking for the big score, the ultimate trade. He’s hunting buried treasure!

But the promise of glory also brings the promise of crushing defeat.

This is a death defying trade. It makes and breaks great fortunes. It’s a massive mountain that rises into the stratosphere and it’s littered with the bones of broken traders.

So how do you catch this crazy, wild trade?

First off you have to know a little secret.

Every market and asset is a bubble at some point.

Every stock, bond, coin, commodity or market goes through boom to bust, over and over and over.

It’s just a question of how fast it happens.

Most people don’t see it because it happens every ten or fifteen years in mature markets. In less liquid and early stage markets like cryptocurrency it happens much faster.

But it happens.

Every. Single. Time.

You don’t know how or when it will happen but it will happen, no matter what the market or the year. The markets in the 1800s are no different from the markets now. The gold market is the same as the stock market and the bond market. The markets before, during and after the dot com bubble are the exact same. They just move faster or slower.

The key to breaking through in your trading is to understand the market cycle.

You also have to understand that the market cycle is a large fractal of each individual asset which goes through this very same cycle at different times. Sure there are the big market movements, boom to bust, but nobody can time those really. Trying to beat The Market, with a capital M, is a fool’s game. The bust will come when it comes.

But you can capture the cycle of individual assets consistently. That’s what these master traders do.

Now you’ve probably seen the cycle before, usually as a warning to stay away or posted by people laughing at bubbles. Like all simple truths, you ignored it and stepped right over it thinking it has to be more complex or that you already have it all figured out.

But what you find again and again, if you take the time to understand and master any skill is that simple is better. You also realize that what you thought was too simple to be the truth is actually all there is to it.

The truth is that which cannot be simpler.

The people who achieved great success in life mastered a few fundamental and universal truths better than anyone else.

So what does the market cycle look like?

Here you go.

Courtesy of the Wall Street Cheat Sheet

I know. I know. You’ve seen it a million times. You got it.

But stick with me for a moment here. You’ve seen this a million times but have you ever really seen it?

Be honest. Probably not.

Now stop reading for a minute. Look at this graphic. Really look at it. Burn it into your brain. Then come back. The article can wait. Take as much time as you need.

Back?

Cool. Now your first thought is that this graphic only applies to bubbles and tulip crazed assets like gold and Bitcoin, right?

Wrong.

This cycle applies to all assets, at all times, in all markets. The cycle is eternal.

This is the universal market cycle.

No asset is exempt.

Every asset will follow this pattern at some point. The mountain might be spread out over many, many years, which is why most people miss it. They’re zoomed in too far.

Zoom out!

Look at the market over time and you’ll see this pattern again and again and again.

Now I know you’ve been taught that the market is random chaos. The efficient market hypothesis says that all market information is perfectly distributed and priced into an asset and eventually the market beats everyone. This is utter and complete nonsense. The only people who believe it are academics and people who have never risked a single cent in their whole life.

Information is absolutely not evenly distributed. It’s asymmetrical. And just because everyone gets the same information eventually doesn’t mean they know what to do with it. Most people simply can’t process that information correctly and make good decisions. They can’t separate the signal from the noise.

In other words, the average person hasn’t gotten a whole lot smarter.

That’s why I can give out this information to whoever wants to read it. I don’t need to keep strategies a secret because most folks won’t believe it or have any idea what to do with it.

Remember the legendary Turtle Traders experiment? That’s when some great market masters wondered if trading was nature or nurture. In other words could they teach people the rules and turn them into trading superstars who made millions?

Here are the complete rules they used, free of charge, written by one of the original turtles. (Quick note: I had the wrong link in there earlier. Fixed now.)

He gave them away.

Why?

Because most folks won’t use them, won’t know how to apply them or think the rules are too old and the markets have already moved past them.

And even if they understand these rules, they won’t follow them in times of great stress. The market loves to play with your emotions like a cat playing with a string. One of the greatest moments in turtle trader history is a guy who lost thirty two trades in a row on coffee and gave up, swearing the system would never work. He walked away and never returned.

The very next coffee trade skyrocketed.

The market is “global psychological warfare,” as legendary trader Jesse C. Stine writes in the single greatest book ever written on badass momentum trading, Insider Buy Superstocks: The Super Laws of How I Turned $46K into $6.8 Million (14,972%) in 28 Months. Stop reading and go buy it right away. It will change your trading game overnight. Get it and come on back. I’ll wait.

I know. I know. The title just screams scam. BS. Crap. Nonsense.

But it’s not. Despite it’s super click bait title, it’s filled with tremendous wisdom and practical steps from someone who actually did it. This is not a pretender. This is someone who delivered and decided to share his knowledge with the world.

That is incredibly rare.

Most people have a breakthrough realization and they just drop out of society after they get it. Once you figure out a great truth there’s nothing to do but execute on it. Why bother posting in any forum anymore? Why bother asking for anyone else’s advice? There is nothing more to learn from those places. So the master just fades away, trusting nothing but his own internal compass now.

And besides if you write down a great truth, it doesn’t matter because truth must be earned by each individual. It can’t be bought or cheated or even learned without personal dedication and hard work.

So why bother? Not only will most people ignore you, even worse some will turn actively hostile to you. They’ll hate you for your knowledge. The people suffering the worst, the ones who live their whole life in fear and who live with a constant undercurrent of self loathing will lash out at you, call you a liar and a fool and a scammer.

And that’s why most people don’t even bother to teach. They just master Kung Fu and disappear to the temple to practice in simple joy for the rest of their life.

But some people even go beyond that and become great teachers because there’s a special kind of joy in sharing knowledge that is unmatched by anything else in life and makes it all worth the suffering.

That’s why Stine shared his knowledge and I will too.

The Charts You’ve Been Waiting For

So let’s look at some real crypto charts to see the market cycle in action.

Here is Bitcoin after its huge parabolic run up the mountain starting in January of 2017 and taking off big time in the summer before starting to crash out in Dec.

Do you see the mountain?

Do you see us coming down the mountain?