Apakah Semua Orang Jenius di Bull Market?

Summary

In this video, Kalim from Crypto Academy discusses the misconception that everyone profits in a crypto Bull market. He explains that while trading can be profitable during such markets, it requires specific skills, including timing, portfolio management, and technical analysis. With over 22,000 cryptocurrencies available, choosing the right asset becomes increasingly difficult. Kalim emphasizes the importance of strategy, understanding market narratives, and knowing when to exit positions to avoid losing profits. Successful crypto trading involves continuous learning and disciplined management, even during a Bull market.

Takeaways

• 😀 Trading in crypto, especially during a Bull market, isn't as easy as it seems. A high failure rate exists, with only 3% of traders succeeding while 97% fail.
• 😀 Many traders fail to realize their profits, even in a Bull market. Without proper exit strategies, they lose their gains when the market turns.
• 😀 Trading requires a specific skill set, including knowing when to buy, how much to invest, and when to exit the market to avoid returning profits.
• 😀 Data from the Bank of International Settlements shows over 50% of crypto traders experienced losses in 2022, emphasizing the importance of knowledge and strategy.
• 😀 The explosion of new altcoins in the market makes it difficult to choose the right investment. More than 22,000 altcoins are currently registered, with many more unregistered.
• 😀 The vast number of crypto assets and the growth of blockchain technology require a new strategy and skill set to succeed in the Bull market.
• 😀 Making an entry in the market requires special timing, as sectors and narratives rotate. Investors must learn to time their entry to focus on the right narrative at the right time.
• 😀 Creating a narrative calendar and predicting market trends can significantly improve investment outcomes by allowing traders to focus on the right sectors and assets.
• 😀 Knowing when to exit is just as important as knowing when to enter. Proper technical and sentiment analysis is crucial to avoid holding assets too long and missing profit opportunities.
• 😀 Portfolio sizing and management are key to success. Risk management, avoiding 'all-in' bets, and understanding spot vs. derivatives markets can protect investors from significant losses.

Q & A

Why do people often assume that everyone is a genius in a Bull market?

Many people believe that in a Bull market, everyone can make profits easily. However, this is a misconception. In reality, trading is a high-risk activity, and only a small percentage of traders succeed, while many others fail, especially when it comes to realizing profits during the transition to a Bear market.

What is the failure rate in crypto trading according to research?

According to research, only 3% of traders succeed, while 97% fail in crypto trading. This high failure rate emphasizes the need for specialized knowledge and skills to navigate the market effectively.

Why do many traders fail to realize their profits during a Bull market?

Traders may see the price of an asset rise significantly, but if they don't know when to exit or have a clear exit strategy, they risk losing those profits when the market shifts to a Bear market.

What happened during the 2018-2021 Bull market with many traders' portfolios?

Many traders saw their portfolios increase by hundreds of times during the 2018-2021 Bull market. However, because they didn't know when to exit or how to manage their exit strategy, they ended up losing their profits when the market changed.

What does the Bank of International Settlement report reveal about crypto traders in 2022?

The report reveals that more than 50% of crypto traders, particularly retail investors, experienced investment losses in 2022, highlighting the importance of effective trading strategies and risk management.

Why is trading in the crypto market more difficult than in previous cycles?

The crypto market has become more complex due to the vast number of cryptocurrencies in circulation. With over 22,000 registered altcoins and more being created continuously, selecting the right assets to invest in has become much harder compared to previous cycles when there were fewer coins to choose from.

What is the significance of having a 'narrative calendar' in crypto trading?

A narrative calendar helps traders track which sectors or narratives are likely to perform well at specific times. By understanding when a particular narrative or sector is gaining attention, traders can make more informed decisions and avoid over-diversifying their investments.

What is the importance of knowing when to exit a position in crypto trading?

Exiting a position at the right time is crucial because profit is only realized when an asset is sold. Traders who don't know when to exit risk losing their profits as the market shifts, especially when transitioning from a Bull market to a Bear market.

What are the dangers of 'All In' trading in crypto markets?

Going 'All In' and putting all of one's capital into a single asset can result in significant losses if the market moves unfavorably. Proper portfolio sizing and risk management are essential to avoid such risks and ensure a sustainable trading strategy.

What role does money management and portfolio allocation play in successful crypto trading?

Money management and portfolio allocation are crucial because they help mitigate risk and prevent large losses. By understanding the differences between Spot and derivative markets, and how much capital to allocate to each trade, traders can better manage their risk and increase their chances of success.