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Don’t Trade Crypto? You Better Know This Anyway

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Written by Timothy Sykes
Updated 3/22/2022 4 min read
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Traders are getting beat up in the stock market. Don’t let the last few green days of the S&P 500 ETF TRUST ETF (NYSE: SPY) fool you…

The overall market sentiment is still pretty grim. Here’s what the news says about stocks and the bear market…

Source: Markets Insider

But I’ve been through bear markets before. And there’s always volatility out there to trade.

For example … I’ve locked in +$55,000 in profits so far this year, despite all the nastiness. Here’s a screenshot of my Profit.ly account…

Source: Profit.ly

As a day trader, I’ve learned to go where the money is. That’s what I teach all my students.

For example, Matthew Monaco joined my challenge in 2017. He passed $1 million in profits trading OTCs in 2021, but then the markets slowed down. That’s when he switched to crypto to follow the volatility.

That’s what this business is all about. Developing the skills and applying them to volatile markets.

Today we need to talk about a new market with huge opportunities. Just look at this headline…

Source: tom’s guide

I can’t cover everything you need to know, but this is a perfect place to start.

Non-Fungible Tokens (NFTs)

Let me explain this as simply as possible. Think about an NFT like a stock that only has one share.

In reality, it’s a unit of data that anyone can buy, sell, and trade.

NFTs are usually digital artwork. For example, that 12-year-old who made almost +$6 million … She sold her art as NFTs online. Here’s one…

Source: tom’s guide

All NFTs operate on blockchain technology that keeps transactions secure.

Imagine if there was a ledger that tracked each owner of Leonardo da Vinci’s Mona Lisa and how much they paid for it.

That’s what the blockchain does. It simultaneously acts as proof of legitimacy and overall value.

How to Trade NFTs

You can’t use a regular broker to trade NFTs.

And because this market’s so new, there isn’t a lot of information on how to get started.

Luckily, one of my Challenge students has a strategy that he’s using to trade NFTs. STAY TUNED FOR MORE ON THIS.

Remember, NFTs are similar to stocks. That means they can trade similarly. And that means more opportunity for you to potentially profit.

After a while, you’ll realize all these markets are the same at the center. It’s just supply and demand. Keep an eye out for my big NFT announcement…

Have you bought an NFT? Is this the first time you’ve heard of it?  Leave a comment and get engaged.

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* Results are not typical and will vary from person to person. Making money trading stocks takes time, dedication, and hard work. There are inherent risks involved with investing in the stock market, including the loss of your investment. Past performance in the market is not indicative of future results. Any investment is at your own risk. See Terms of Service here

The available research on day trading suggests that most active traders lose money. Fees and overtrading are major contributors to these losses.

A 2000 study called “Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors” evaluated 66,465 U.S. households that held stocks from 1991 to 1996. The households that traded most averaged an 11.4% annual return during a period where the overall market gained 17.9%. These lower returns were attributed to overconfidence.

A 2014 paper (revised 2019) titled “Learning Fast or Slow?” analyzed the complete transaction history of the Taiwan Stock Exchange between 1992 and 2006. It looked at the ongoing performance of day traders in this sample, and found that 97% of day traders can expect to lose money from trading, and more than 90% of all day trading volume can be traced to investors who predictably lose money. Additionally, it tied the behavior of gamblers and drivers who get more speeding tickets to overtrading, and cited studies showing that legalized gambling has an inverse effect on trading volume.

A 2019 research study (revised 2020) called “Day Trading for a Living?” observed 19,646 Brazilian futures contract traders who started day trading from 2013 to 2015, and recorded two years of their trading activity. The study authors found that 97% of traders with more than 300 days actively trading lost money, and only 1.1% earned more than the Brazilian minimum wage ($16 USD per day). They hypothesized that the greater returns shown in previous studies did not differentiate between frequent day traders and those who traded rarely, and that more frequent trading activity decreases the chance of profitability.

These studies show the wide variance of the available data on day trading profitability. One thing that seems clear from the research is that most day traders lose money .

Millionaire Media 66 W Flagler St. Ste. 900 Miami, FL 33130 United States (888) 878-3621 This is for information purposes only as Millionaire Media LLC nor Timothy Sykes is registered as a securities broker-dealer or an investment adviser. No information herein is intended as securities brokerage, investment, tax, accounting or legal advice, as an offer or solicitation of an offer to sell or buy, or as an endorsement, recommendation or sponsorship of any company, security or fund. Millionaire Media LLC and Timothy Sykes cannot and does not assess, verify or guarantee the adequacy, accuracy or completeness of any information, the suitability or profitability of any particular investment, or the potential value of any investment or informational source. The reader bears responsibility for his/her own investment research and decisions, should seek the advice of a qualified securities professional before making any investment, and investigate and fully understand any and all risks before investing. Millionaire Media LLC and Timothy Sykes in no way warrants the solvency, financial condition, or investment advisability of any of the securities mentioned in communications or websites. In addition, Millionaire Media LLC and Timothy Sykes accepts no liability whatsoever for any direct or consequential loss arising from any use of this information. This information is not intended to be used as the sole basis of any investment decision, nor should it be construed as advice designed to meet the investment needs of any particular investor. Past performance is not necessarily indicative of future returns.

Citations for Disclaimer

Barber, Brad M. and Odean, Terrance, Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors. Available at SSRN: “Day Trading for a Living?”

Barber, Brad M. and Lee, Yi-Tsung and Liu, Yu-Jane and Odean, Terrance and Zhang, Ke, Learning Fast or Slow? (May 28, 2019). Forthcoming: Review of Asset Pricing Studies, Available at SSRN: “https://ssrn.com/abstract=2535636”

Chague, Fernando and De-Losso, Rodrigo and Giovannetti, Bruno, Day Trading for a Living? (June 11, 2020). Available at SSRN: “https://ssrn.com/abstract=3423101”