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All of 19, Sami Loyal is a crypto and indices trader who dropped out of college a few years ago to pursue his dream of trading full-time. He has since racked up over $1 million in profits and runs a successful YouTube channel under ‘Forflies,’ sharing tips, tricks, and traders with newer traders wanting to emulate his path.

You probably saw Loyal at last week’s episode of Cryptonites (here’s it, in case you missed it), the crypto edutainment channel run by host Alex Fazel. The duo is back for Part 2 of the mini-documentary, and this time, they’re diving deep into crypto trading strategies and what not to do when someone’s planning to begin trading on a full-time basis.

Loyal kicks off by stating that trying to make up losses by overtrading is, simply put, the worst-ever strategy for any budding trader.

“I always give the same example on my YouTube channel. If you lose minus 50%, you need to double your money to break even so you’re screwed. You need to work double as hard to make that money back,” he says.

The reason? It’s because losses are sure to mess up with a person’s overall psychology and a key part of trading. A trading adage even says that 80% of all trading is entirely managing emotions, while the remaining 20% is managing risks and creating a strategy.

“The next time you want to get into a trade and you actually might see a really good opportunity, you know how badly you messed up the last time. And now you have to recover that 50% loss for example. You just won’t commit to a good idea you might commit with less money than you should have or there could be any number of things that go wrong,” he shared, adding: 

“It’s not just the money you lost yesterday. It’s the opportunity you won’t take tomorrow because you have no confidence in yourself.”

Avoiding such a scenario, as per Loyal, is by not taking unnecessary risks by trading with less money, having more confirmations with different indicators, and following safe practices when it comes to trading and managing a personal book.

“If you’ve read a trading book, the best practices, and things that other successful traders do, you know that you should those kinds of principles and you tend to avoid those problems,” he adds.

Writing and maintaining a detailed journal, as uncanny as that may sound, is yet another major tip that Loyal shares. This not only helps him retain and build on the best practices but also avoids any popular notions that don’t work.

“(If) there was a rising wedge RSI or whatever volume, I would write down these reasons and I would write down the reasons I shouldn’t have entered. And this will help me: These signs were quite useful to follow. These ones were quite unreliable. And that’s how I’ve come to a very strong conclusion that the RSI is useless,” he shared.

Loyal added, “I strongly believe that it depends on how you use it, of course, but it’s pretty bad. In my opinion, I came to that conclusion because I couldn’t use it properly in my trading journal; it led to failing traits.”

He also chooses to use the 4-hour timeframe along with analyzing the hourly and daily charts in his trading. ‘The problem here is now there’s a lot of new data coming in all the time and new traders, they make this big mistake of thinking that the more I trade arise, the more money I’ll make. And I can’t think of any worse approach,” said Loyal.

“Because you’re going to analyze a new piece of data every five minutes on the five-minute time frame that’s going to make a gambler gamble,” he ends.

(Want to know several more tips to trade Bitcoin that Loyal lives by? Want to know what he says about the asset’s future? Find it out on the entire Cryptonites episode, available for free streaming right below!)

The post 19-year-old Bitcoin millionaire gives his most UNUSUAL tips on trading appeared first on CryptoSlate.

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