How To Trade Cryptocurrency


– What’s up, Tim Sykes,
Millionaire Mentor,
here with Tim Bohen,
Trading with the Tims.
Lead trainer, stocks to trade.
Today, we’re talking about crypto.
What do you think about crypto?
– I’m disappointed; I had so much hope.
I had high hopes.
I admit I was a believer
to a certain extent.
I traded Bitcoin; I traded
Ethereum a little bit,
and I wanted, I wanted, I
had hoped–I know there’s
no hope in trading just like
there’s no crying in baseball.
– There’s no crying in baseball.
– I’d hoped–
– There’s no crying in baseball.
– That the crypto run would
be real, but, unfortunately,
winter 2018, it looks like an elaborate
pump and dump at this point.
– Crypto could come
back, but it is also down
80% off of its highs.
For me, I look to trade anything volatile.
I like the crypto stocks;
they were beautiful.
It was, like, 1999, again
1998, my first million
that I made was buying
penny stock breakouts
on ridiculous news.
– ‘Cause this, the
the beauty of this was
back up to last year,
roughly this time, we’re
recording in November/December,
you know, Bitcoin was going crazy,
and it was an incredible
time because the most,
the biggest joke of
companies, all they had to do
was issue a press release
that said Blockchain
or said crypto, and, man,
two out of three times,
you’re looking at a hundred
percent runner that day.
– And before I was rudely
interrupted by the Hunter Galore,
I was actually talking
about 1998-1999, I made my
first million buying
penny stock breakouts.
Back then, they just added
dot com to their name,
and they were an internet company.
Sportsman’s Guide sold camping equipment;
sportsmansguide.com sold
camping equipment online,
stock tripled.
I never held that long.
Same thing with crypto stocks;
they never held that long,
but remember Kodak when
they got into crypto,
it was like KodakCoin that
turned out to be crap.
– Yeah, and they had Kodak,
which most of you, if you’re,
well, some of you might
not remember Kodak,
the old camera company, they
pivoted into cryptocurrency.
They had this miner that looked
like a toaster with a fan on it.
It was a joke, but stock from, I think,
don’t quote me, like two to seven.
– Three to twelve.
– Three to twelve, alright.
And then came all the way back, of course.
– It came all the way back,
now there’s questions.
Crypto, again, maybe it’s
the future, maybe it’s not.
Very few companies actually
use it, like, for me,
if a product is really
gonna take off, like,
there should be widespread use.
Not just, you know, okay, on
a white paper, it looks good,
or, you know, technologically,
it looks good,
or maybe it’s even logical
to use, there needs to be
widespread acceptance, like,
online discount brokers
revolutionized the
brokerage base because it
made sense, and it was a
lot cheaper, so old brokers
pretty much had been wiped out.
There still are a few.
It’s actually funny
this one guy gave me his
business card the other
day, and I was, like,
what, I don’t even, what,
I don’t even know what
to do with this, like, can I upload it?
It was so weird.
So, blockchain, crypto has the
chance to change the world,
but the price of it got
way ahead of itself because
of how, you know, luring,
it was alluring, right?
Like, it was hopeful, um,
the whole world is changing,
like, we want humanity to be great.
We can elect a black leader.
We can change the world;
we can end nuclear war.
Crypto’s going to change
the world, you know,
like, maybe hunters won’t
kill animals anymore.
Who knows what’s gonna happen?
But, Tim Bowen, after crypto
fell, took his anger out
on these poor, defenseless
animals, and then
eats them to feel better
and says that it’s
protein in part of his diet.
– But the nice thing
about the crypto stocks
as well as even Bitcoin,
is, is it enforces the point
that these chart patterns repeat.
I mean, you can look at the
chart of Bitcoin, you know,
from 80 cents to 19 thousand,
to two-three thousand today,
and you can look at some
of, you know, some of your
charts from 15 years ago,
and your DVDs and your book,
and it’s the same chart pattern.
– Or the Chinese stocks or the shipping
stocks,
– Yeah, exactly
– Or nanotech, or Y2K.
– Yeah, you could
You could look at DRYS, a
stock that went from two
to 120 or 140 in, like,
two and a half days.
It’s the same chart, yeah.
– Or Accelerate Technologies,
do you remember this?
– Mmm.
– This was Y2K, back in the
year 2000, and everyone thought,
like, all these computers
were going to shut down
because of going from 99 to 2000.
Nothing actually happened,
but a lot of these “Y2K” plays
had the same kind of spike,
so Y2K came and went.
You know, Chinese stocks came and went,
– Shippers stocks
– The shippers came and went.
– Came and went, does
Bitcoin have a future?
Bitcoin does exist; crypto does exist.
This is the difference here.
It’s a real product, but
what is the value of it?
And I don’t know that answer.
Is it worth 20 thousand at its peak?
Is it worth 35 hundred
where it is right now?
Is it worth a thousand, uh, you don’t know
because, frankly, you know,
it’s all a guessing game.
And this is my problem with crypto-people
because they’re so sure, crypto is going
to be at a million by this date.
I’ll eat my own dick if
it’s not at a million.
People have actually said this.
You just don’t know, and this is
no different than, you
know, people on CNBC
where they’re guessing, they’re putting
specific price targets
– That’s, that’s
the lesson there is you don’t know,
and no one knows, but that
doesn’t mean there aren’t
trading opportunities,
but don’t get lulled
into thinking you know.
– But it’s human nature
to put price targets and
to want to say, like,
I know this, and then,
if it comes true, then it
becomes a self-fulfilling
prophecy, and you think
that you’re a prophet.
For me, I’m more interested in the price
action and the patterns.
I don’t know how high
something’s gonna go,
but I do know that, if
something is in, like,
a mania state, and that
is something that every
single one of us can know
100% by studying the past.
I know, I’m just beating
an old drum like it’s the
same thing, but studying
the past, you can see these
patterns happen again and
again, and they’re different.
Bitcoin went up much more than
any of these other manias,
but now it’s come down in
the same exact fashion.
You can actually put, like,
charts back to the NASDAQ
boom and bust of the year
2000 and now Bitcoin.
So don’t be so sure of anything.
The lesson here is just to be flexible.
If you ride a mania, fantastic.
– And only price action matters.
– Only price action,
but sell on the way up.
Sell in eighths if you want
to be, like, aggressive.
Sell an eighth, sell an
eighth, sell an eighth,
sell an eighth, sell partial positions.
You don’t have to sell all at once,
but never just hold on to a whole position
and hope, especially if
you doubled, tripled,
10 times, 50 times your money.
I hate getting messages
from people being, like,
I had all this money;
I should have listened.
Take some partial profits.
I was actually in South
Africa a few months ago
when Bitcoin was at 12 thousand.
Um, in the, my South African tour guide
was in from a thousand, so
she’s made 12 times her money.
– No kidding.
– It was down from 20 thousand,
and she’s, like, what do I do?
I was, like, sell half, sell
half, protect your gains,
lock it in, if the rest goes down,
you’ve still already locked in your gains.
If it goes back up, you can sell the rest.
I don’t know what she did.
I haven’t talked to her,
but that is my suggestion.
When something goes up too much,
whether it’s penny stocks
or 4X or any kind of asset,
when it goes up, exponentially, take gains
along the way because
it rarely ever lasts.
No one trade, no one sector,
no one stock is going
to make you so much money
that you never have to do this again.
– And it’s such a simple
thing, but so many overlook it.
You can always rebuy.
You know, I think that it,
I think it’s so obvious for
long-time
– Psychological thing.
– But long-time traders
like us, it clicks,
but as newer, you can always just rebuy.
I mean, if Bitcoin rips
back to 9,000 tonight,
you can rebuy it tonight.
If another stock starts,
you know, you can always
take those gains book ’em,
and then you can always retrade, yeah.
– People get very attached
to their investments
and their, um, egos get involved,
and their stubbornness takes over.
Where it’s like, no, this must happen.
I must do this, otherwise, otherwise what?
Sell your position, and buy
it back two minutes later,
see that the world did not, you know,
die off, like, and the world goes on.
It’s okay to exit a position
and rebuy and then get out
and then rebuy and then get out.
Like, you don’t have to
be attached any more.
Online discount brokers allow you
to buy in and buy out very often.
If you’re a short seller, I get it.
You don’t want to exit your
short because there are
so few shares to short,
but if you’re buying
crypto, if you’re buying this stuff,
also, one other thing,
one final closing thought,
how much time do we have left, Pascal?
– [Pascal] A good amount.
– What time are we at, how much?
– [Pascal] Eight minutes in.
– Alright, good, we have two minutes left
’cause we want to make
this a ten minute video
just ’cause that’s what I love.
My whole goal is to
make ten minute videos.
I want to talk about where, you know,
crypto [exhales] it
became this, this thing,
like, people would get
angry.
– Well, a religion.
It almost reached that level.
– People would get very angry when I
talked against it, like, blasphemy.
And it’s very similar to a lot of these
penny stocks, like Fusz Sciences, F U S Z,
forget you, you idiots who
keep holding that stuff.
You know, it’s, it’s crazy
to look at from the outside
because I consider us free;
we’re not in the matrix.
Some people who are
stuck and they’re locked
in their mindset, and they won’t change
until they lose a lot of money.
Don’t be that person, don’t ever get
so that you feel like you can’t
listen to the other side.
– You should, you should never
– Always listen to the
devil’s advocate side,
like, listen to, oh, okay,
let me hear what you think,
and then you’ll be surprised.
Sometimes the other side might
actually make a more appealing case.
– Yeah, never put yourself
in the position where
you’re capitulating,
where you’re just selling
because you can’t take the pain anymore.
You have to have a plan, you
have to have that realistic
attitude to say I’m into this asset,
whatever this asset is,
and it is not working,
and I’m not going to wait
until I just can’t bare it any more.
That’s that bag holder
mentality, you know,
all of us long-time traders always
make fun of the bag
holders, the bag holders,
but those are the people
that will not sell
until it just reaches max pain level.
– Rule number one is cut losses quickly,
but you don’t have to
just wait for loss to cut.
You can take profits,
it’s not a bad thing.
It’s a good thing, and you
need to learn to do it.
Also, if there is some dissenting opinion,
don’t just block them and be, like,
they’re wrong; I don’t want to hear it.
You should think about wait a minute,
I can be wrong on any trade.
I can be wrong on any sector, let me hear
all the arguments, and that way, you stay
open-minded enough and flexible enough.
Trading and getting rich
is all about flexibility
and adaptability, and if you
don’t do that, you’re done.
No matter how much money
you’ve made in the past,
you can always be too stubborn
and lose it in the future,
as I know a lot of people
watching this, I’m sorry,
I don’t mean to be a menace about it.
This isn’t, like, an I told you so video,
but I know people lost a lot of money
with Bitcoin and crypto,
like, they changed
their entire businesses,
they did everything.
They moved into this, and now they’re,
there’s mud on their face.
– I mean, you have, the
final lesson, I think,
that we’re kind of headed for, towards is,
you have to be willing to be wrong
to be successful in this game.
If you can’t be wrong,
you will never make it.
If you’re Eddie Lampert, and
you held Sears all the way
to zero, it doesn’t matter if
you made 20 billion 20 years
ago, you just took Sears
all the way to zero.
– Well, he actually locked
in his bonuses, so he’s okay.
– Well, okay.
– Year by year, hedge funds are a scheme.
Leave a comment below,
uh, if you love Bitcoin,
if you hate Bitcoin, or
if you just understand
this video lesson, we like
to hear what you think.
Also, leave some comments
asking us for some more topics.
We’ll talk about anything;
we want to help you.
It’s better when you’re
rich, but if you’re broke
and using the free library
wi-fi, God bless you.
At least you’re studying.
Eat some good food tonight,
beg on the streets,
do whatever you have to,
and if you know somebody
whose lost a lot of money in crypto,
give them an extra $20,
give them a little smile.
Hey, Tim Sykes, Millionaire
Mentor and trader.
Thank you for watching my videos.
I hope that they help you; I want to share
everything that I’ve
learned over the years.
You can check out more
videos, right over there,
and also click subscribe,
so that you can watch
all of these videos, get that knowledge,
and become my next millionaire student.
(light chiming bells)

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