š§āāļøHottest New Trend
Market Meditations | March 25, 2021
Dear Meditators
You said you wanted to learn more about the hottest trend in crypto: NFTs ?
And so, weāre delivering you a masterclass with the the founder of the first ever NFT investment fund ? Everything you need to start trading and investing ā
? As usual, weāll also provide your daily dose of crypto news and education.Ā
Tell us what other topics you want covered ? here.
MARKET BRIEFING
Crypto. Over the past week, Bitcoin has seen bearish price movements: trading in the $60,000 range on March 19 to the $50,000 range of March 25. It is worth noting that the biggest-ever Bitcoin option expiry is due tomorrow (March. 26). Over $6 billion worth of BTC options. According to some analysts, the expiry could lead to a change in sentiment in the favour of bulls.
Legacy. U.S. equities edged lower as investors weighted the outlook for vaccinations, economic growth and inflation. Oil tumbled after a rally spurred by the blockage of the Suez Canal.
Delighted to say this article is brought to you by FTX ?, you can use my link to get a discount. As well as being one of our preferred crypto exchanges, through the FTX Foundation, FTX, its affiliates, and its employees have donated over $10m ā to help save lives, prevent suffering, and ensure a brighter future.Ā
MARKET MEDITATIONĀ
The Bed of Procrustes
Feels like time we ticked off another Nassim Taleb book. Todayās focus: The Bed of Procrustes.
? We donāt usually begin our Trading Education sections with an explanation of what the title of the book means but in this situation, it is warranted.Ā
Procrustes, in Greek mythology, was the cruel owner of an estate in Attica who would abduct travellers and either stretch them or cut off their heads to ensure they fitted his bed perfectly ? The entire book is about a Procrustean bed of sorts:
The idea that faced with the imperfection of the unknown and the unobserved, we humans tend to back-fit the world into reductive categories.
ā The book consists of a series of aphorisms: a concise or memorable expression of a general truth or principle. Here are a few most relevant to trading and investing ?
āIf something (say a stock price) looks slightly out of line, it is out of line. If it looks way out of line, you are wrong in your method of evaluation.āĀ
If we are diligent, we spend a lot of time coming up with our trading strategies ā° From guides to creating a Trading Journal to Risk:Reward articles, we have a range of resources to help you in doing this. However, the amount of time you spent on your trading strategy does not guarantee its success or suitability ā If the market reaction is way out of line to your expectation, rather than blaming the market, it is important to be logical and revise your strategy. For the market will never apologise and the market will never return any losses.Ā
āThe three most harmful addictions are heroin, carbohydrates, and a monthly salary.ā
Weāve covered a range of career journey books such as the 4 Hour Work Week and the Millionaire Fast-Lane. What they all have in common, is the idea that a monthly salary turns your attention so much toward money that you lose sight of that which money achieves: freedom, mobility and liberation. With a 9-5 job and monthly salary, you will be retired by the time you may truly enjoy that which money achieves. Turn your attention to other income generating activities such as trading, investing and creating your own business ā
āSaying someone is good at making profits, but not good at managing risk, is like saying someone is a great surgeon, except for cases when the patients die.āĀ
Minimising losses, minimising losses and more minimising losses. Great traders are able to manage their risk and set stop losses such that their downside or maximum capital at risk is quantifiable ? And so, they know that they will never risk enough to be completely wiped out. Cut your losers short and let your winners run. Failure to do this is one of the main reasons people canāt become successful traders. We have a full guide on setting stop losses.Ā
PODCAST
How to Invest in NFTs with Andrew Steinwold
With the level of momentum NFTs have been picking up, we are absolutely delighted to share this podcast ?
@AndrewSteinwold is the founder of the first ever NFT investment fund Sfermion ? He also runs NFT newsletter and podcast, Zima Red.Ā
Who better to talk us through this exciting market and how we can best position ourselves as traders and investors ?Ā
? For the latest on: Crypto, DeFi, NFTs and Trading Education, join our FREE Market Meditations community?
DEFI NEWS & ANALYSIS
$40 Million into Solana?
ā OKEx and MCX have announced their decision to invest $40 million into a strategic investment fund to further catalyse growth for the Solana network ? According to the deal, exchanges will receive equity paid in $SOL tokens. The focus will be developing products in the NFT space powered by Solanaās technology. OKEx and MXC imply they are investing into the Solana ecosystem because itās a project focusing on ātechnology focused solutions in DeFi and other emerging fieldsā.
Whilst we should avoid opening a position based exclusively on news, tracking progress of certain projects with robust fundamentals, strong teams, and relevant narratives helps establish a bullish or bearish HTF bias. ? If we know that $SOL, for example, has a strong bullish narrative (it is considered to be a faster and cheaper Ethereum), we may decide to be more selective about opening a short position or decide to cover or take partial profits quickly. ? Likewise, we may be more inclined to buy the dip on a coin like $SOL as opposed to a coin that doesnāt have this momentum behind it to generate buying interest.
PUZZLE
How well can you hold multiple variables in your head? The best traders can hold many, it allows us to work quickly and accurately whilst in multiple trades. Here is a little brain training exercise for you to improve this skill, see if you can do this puzzle entirely in your head without a pen or paper.Ā
The day before the day before yesterday was two days after the day before my birthday.
Today is Thursday.
On what day was my birthday?
Scroll down for the answer?
CRYPTO NEWS & ANALYSIS
Biden and Crypto Regulation
A recent report from MarketWatch, entitled: āBitcoin, crypto investors will be watching these 5 questions facing the Biden administrationā discusses the looming reality that is the regulation of cryptocurrencies as the industry continues to generate buzz. Most people hear the word āregulationā and run for the hills. We are of the opinion that this fear is misplaced.
The reality is that many people prefer to ignore the crypto asset class due to its unclear regulation. If the crypto space were to experience more well defined regulation, it could legitimize the industry for a whole new wave of people. For traders and investors concerned about how regulation may impact price, clearer policy encourages market participation ? With more people aware of crypto as a legitimate asset, itās more likely that a large number of people will begin allocating small amounts of their capital to the industry. Whilst some will become active traders watching the 15M chart, many will simply dollar cost average through a 401K or deploy a multi decade buy and hold strategy. Chamath Palihapitiya, for example, asks everyone to consider allocating 1% of their capital to crypto in the ārisk-onā bucket. The point is that regulation gives people the psychological air-cover to take on a position in an asset with which they were previously unfamiliar.
ANSWER
Today is Thursday, so the day before the day before yesterday was Monday. This was two days after the day before my birthday, hence the day before my birthday was Saturday. Therefore my birthday was on Sunday.
Now, if you got that one: very well played ?
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Disclaimer: The content in this newsletter is for informational purposes only. Nothing in this email is intended to serve as financial advice. We are not financial advisors. Every investment and trading move involves risk. Do your own research when making a decision.
