Why Investing In Stocks Makes You Better At Cryptos: Part 3

Welcome to the final part of this three-part series.

In part one, we looked at the importance of timing and identifying high-probability assets across all markets.

In part two, we looked at why being a good stock trader or investor gives you an edge that is often overlooked or underappreciated.

In part three, I'd like to bring your attention to one of the main challenges that budding investors face: getting the balance right between keeping losses insignificantly small and profit exponentially higher through the power of compound growth. 

A Robust Process

You want to eliminate luck entirely and have a robust process that works consistently between now and retirement. It is called trend following. 

There is no easy way to perfect this other than through experience and qualified guidance, just like any other endeavor in life, whether it be a career choice or a hobby. 

The best market to perfect this is stocks. Why?

It is a mature market that offers endless high probability opportunities. Price movement is steady and almost predictable, making it very manageable. 

Entry points, stoplosses, risk management, compounding and all-important exit management are best learned and mastered in the stock market and then adapted to the crypto market. If you spend the time getting this right, you have a skill set that is transferable to other markets. 

Referring back to part one, I am not in the slightest bit concerned about the limited opportunities in the commodities market, as the stock market keeps me content.

I don't care for gold; I care for profit. Yet when gold or any other commodity is ready for the portfolio, I am prepared to invest in it just like a stock. A chart is a chart, after all. 

Crucially, I have a process transferable to the world of cryptos that I have tweaked to deal with the added risk and volatility. What is important is that I am in complete control. The crypto space is maturing. It is very much in its infancy phase, but it also has unbelievable potential. It is, however, from my experience, loaded with the unsophisticated who adopt amateurish techniques chasing the next Shiba Inu SHIB/USD rather than looking at it as venture capitalists building the future.

You just need to end up in one of those crypto Telegram groups to understand what I am talking about. You may already be getting caught up in all the noise and know what I am referring to. 

Improvements In Your Strategy

Adopting trend following, a proven process with a rich history that goes back to the dawn of the financial markets, is a must if you are to have a portfolio of which you are proud. 

• Your analysis skills will ensure you are entering the best possible opportunities. 
• Entry points will be better timed and made with logic. 
• Risk management will ensure you are always here to invest for another day.
• If you go as far as understanding the benefits of compounding, you will exponentially grow your account safely. 
• A better grasp on exit management will mean you take profit without being a slave to your screen. 

Trend following blocks out the noise and is a process that you can adapt to bank profit in cycles of trends that last months to years in stocks and commodities to the crypto market, where cycles last much shorter from weeks to months.

And let us not overlook the importance of you being able to manage your portfolio with the coolness and calmness of someone who is here to enjoy life. After all, you don't want to give up life to be an investor, and you don't need to with the right choices. 

Conclusion

I'd like to remind you about what I said at the start. It is not about one market being better than the other; it is about being a good investor. To be a good investor, nail trend following the stock market first and you will have a repeatable edge that consistently picks out the best opportunities. You will have developed a transferable skillset that allows you to move from market to market, picking out these opportunities and all with the assurance that your future is in your own hands — a position in life very few achieve.