5- 📝Tutorials Section📝 / 4-🌙｜intermediate-tutorial

Level 2: Intermediate

Inside Crypto you'll become versed in not just how to buy & sell, but also how to go long or short, how to hedge your positions, risk management, position sizing, leverage, stop losses, how to enhance profits, and much MUCH more.

Learn hard, make sure you're thinking very carefully about this material as you go through it.

Do not just 'watch' it and 'read' it passively. Think about these situations and then memorize it all.

This material is very critical in forming your foundational knowledge.

There are many lessons which will get progressively more complex as we proceed. You'll likely need to come back after a month and re-learn everything because there is so much to know.

⬇️ Review the map and see how far you've come! The REAL training starts here...

THREADS

There are topic-specific threads with advanced guidance on price behavior and analysis. Follow these threads to get notified and stay up to date with the latest messages on the topic of discussion. For example #deleted-channel is a thread dedicated to live trade updates for Bitcoin

This is "HU2 Crypto Commitment" by Hustler's University on Vimeo, the home for high quality videos and the people who love them.

Michael G - Crypto 05-Apr-22 05:01 AM

Profit and Research Toolkit

Here are some of my favorite resources for analysing the crypto markets. These can be used for both short and long term plays. As always, using a combination of tools that build upon each other is the key to success. There is no magic tool, but you can build a bulletproof strategy by combining many.

Note: I do not receive affiliate or referral fees for the below links.

https://tradingview.com/ - user friendly charting software for traders in all markets

https://okotoki.com/ - live order books (limit orders)

https://v3.aggr.trade/ - listen to the tape (live market orders)

https://coinalyze.net/ - in depth analysis of spot and derivatives (funding rates, open interest etc.)

https://cryptowat.ch/ - user friendly layout of data

https://thecoinmonitor.com/ - identify abnormal flows

https://coinlobster.com/ - live combined orderbooks and flows - great for spotting which exchange is leading price

https://exocharts.com/ - order flow, market profile, in depth analytics (requires subscription)

https://tradinglite.com/ - live orderbooks with heatmap layout

️ Thoughts on position sizing

Concentrated bets : Uncomfortable & hard to manage, but produce most of outperformance.

Diversified bets: Can work but need to have clear thesis. It’s hard to keep tabs on multiple themes. Market will test your conviction. Have entry/exit criteria.

Relating this to barbell portfolio theory, I like having thresholds & relative views of a position. For example:

What is the probability position A outperforms ETH❓ What is the probability position A outperforms position B in a similar category❓ How much additional risk am I taking on with A relative to B, where B is beta or risk free❓

Ultimately, there’s no science to position sizing. Intuitively, you know when it’s not right, it will feel uncomfortable. (One of the rare times we advocate for using your feelings in trading)

e.g. George Soros says he gets back pain when his position sizing is off.

Critically: Know what you’re holding & why, make it big enough to matter & monitor it like a hawk

Do you need LEVERAGE in Crypto?

To answer this question, you need to be real with yourself, and ask 'Why am I needing more capital to trade with?'

If the answer is: "I have a profitable strategy that I have tested for 6+ months and I wish to reduce my counter party risk by using leverage so that I can free capital up to be used in other ventures" then the answer is, YES use leverage

If the answer is: "I want to trade with more to make more profits" than the answer is ABSOLUTELY NO.

Leverage is not a tool used to trade with MORE, it's actually a tool used to trade with LESS.

If you're worried about not making enough profits from your trading, then INCREASE YOUR INCOME.

❗ Leverage, for the sake of leverage is the single most HARMFUL tool you'll ever come across to your trading.❗

Leverage essentially increases the emotional toil, stress, gambling chemicals like dopamine, and desire for quick riches.

The emotional turmoil of trading with $100 using 10x leverage, and $1000 using 0 leverage is MUCH worse for the former.

And the ENTIRE goal of trading is to reduce emotions, so using leverage is the EXACT opposite thing that helps you in 99% of cases.

TLDR: DON'T USE LEVERAGE UNLESS YOU'RE PROFITABLE WITHOUT IT

The curse of the "Sell now and buy back loweroooooor"

I had a good question from a student just now and it reminded me of a critical mistake that many investors make in bull markets:

"I'll sell my spot bags now because this looks like a local 'top', and then buy it back lower"

We've all been guilty of thinking this at some point, me included. Sometimes it may even have worked, which only served to boost your ego and make you feel like the bull market mirror genius.

But it's a terrible idea for 99% of investors.

First, you can't make decisions based off how price "looks". Charts are designed to deceive you, what looks bullish is usually bearish, and vice versa.

I'm not saying to never sell. If you have a rules based system that is telling you a top is in or close to being in, then sure, take some profits.

Remember: if price has looked shit and dead for weeks, it means the upside potential is of an equal or greater extent. Consolidation leads to markup, so why would you sell at the first stage of markup?

Maybe you're thinking "of course I know that the top isn't in, but I want to be smart and sell now so I can buy the correction".

Flawed logic. That's first order thinking. Every numbskull thinks this, it's an absolute middle of the bellcurve move to make. The reason the 10IQ tards and 140IQ gigabrains get rich is because they both know that in a bull market numba go up.

Think about it: you want to sell here and buy back lower. But why would you buy back lower? Only because you think it makes a new high after that, right? You wouldn't buy back lower if you thought the top was in. So if you think it's eventually going even higher than current price, why the hell are you putting your future gains at risk?

It's either a lack of education, or greed.

Now you've been educated. So get out of your own way and don't be greedy. (edited)

❓ Should I quit to go full time Crypto?❓

I recently spoke to a student inside HU2 who had $3k to his name, who was considering going full time Crypto

I HIGHLY recommended not to do this, and I'm genuinely shocked someone would consider going full time with such a small starting sum, so I wanted to do a post on why I think this is the wrong move.

When creating wealth, there are two paths:

1. Wealth Accumulation

2. Wealth Management

99% of students in here, should be focused on the former. You're BROKE. You ain't got shit to manage.

The 1% of students, who have MINIMUM 7 figures, can begin to focus on the latter.

The compounding effects of wealth in Crypto go exponential as you put more and more money into the market.

The compounding of 3k is MUCH slower than the compounding of $1,000,000.

Income is not at all like this. Income is consistent regardless of if you're broke or rich.

You don't magically need $100k in the bank to make 6 figures. You could be DIRT poor and make that.

The ease of making consistent income regardless of savings is EXACTLY why a broke boy should be focused on 'accumulating' wealth through work, instead of 'managing' 1 months worth of income.

TLDR:

Can you buy a lambo? No?

Then get back to work stacking cash at a job and/or a business and do Crypto on the side.

TRADING PRIORITIES

No tool or chart analysis can fix poor trade management and emotions, so focus heavily on these areas before you even open a chart or TA textbook.

Intangibles:

1. Emotional control

2. Risk Management

3. Conviction

4. Trade Management

Technicals

Nothing is a waste in terms of technically studying the markets. Even understanding the crap stuff is valuable in showing you what moves you should avoid, or even countertrade.

However, your time is limited so you need to be selective about what order you study market mechanics in.

I'd focus on these first (if you haven't already):

1. Basic Price Action & Market Structure

2. Market Auction Theory

3. Order Flow (specifically Delta imbalance)

️

FRAMING - WHY LOSING IS SO MUCH WORSE THAN WINNING❌

Many of you want to be scalpers or short term traders.

I understand (after all it's my fault - most likely watching me has made you feel this).

But you must understand something very important.

Every time you lose on a short term trade, you are stealing money from your future self.

Let me explain.

All of us here believe that crypto will continue to grow for many years to come. It's a relatively new industry, going through rapid technological advances and with a tiny level of adoption relative to global population.

So why is short term trading a bad choice for most people?

Let's say for example you think ETH can hit $30k in 5 years time - not a crazy prediction at all by all accounts.

That's basically a 10x from here. With no work required, simply buying & holding

That means every $1 you lose scalping or short term trading is actually $10 you have stolen from your future self

You're multiplying your losses by 10 every time you lose. You could have just bought some more ETH with that money. Is it worth it?

Now, don't get me wrong. Profitable scalping can also supercharge your longer term holdings (that's what I do), but you have to be realistic, the odds are not favourable for this.

So think about it, really do. I trade full time because I have a particular skillset and it suits my lifestyle and goals. I'm also utterly obsessed with markets and enjoy the game as much as the money. If you like the idea of scalping because you think it's glamorous or cool, I can assure you it's not.

It's early mornings, late nights, staring at screens way too much, and a ton of stress.

Just some food for thought if you are thinking with a very narrow focus on the here and now (which most of us do, especially day traders).

The importance of where you put your money

I speak to many men in here who tell me "I want to get rich fast!"

Yet, they have their money in Stocks, want to do Real Estate, have a 15k 'safety net', and other stupid shit

Listen, that $5000, $10000, $20000, or whatever amount of money you are investing with

Is HUNDREDS of hours of your LIFE FORCE, converted into currency

It is the blood, sweat and tears that you parted with to SURVIVE and thrive.

And you really want to waste that life force on a 10% per year in STOCKS?

You really want to own a stock which UNDERPERFORMS the growth of the M2 money supply?

Owning stocks and wanting to get financial freedom quick is the definition of NGMI.

It is the disease of traditional wealth advice radiating off of you and keeping you poor.

So you need to ask yourself 2 questions:

1. How fast do you want to get rich❓

2. Does your investment plan align with your goal❓

If there is a misalignment, fix your shit immediately