4 Guaranteed Ways to Stop Losing Money and Beat the Market as an Investor & Trader

He is Warren Buffet.

In 2007, he boldly announced that he would bet $1M on an investment that would, over the next 10 years, outperform the best traders on Wall Street.

This wasn’t just a gamble; it was a move set to revolutionize the financial world.

Ted Seides from Protege Partners accepted the challenge.

Confident in his choice, he selected 200 hedge funds managed by Wall Street’s elite.

Seides had the sharpest minds and the most sophisticated strategies at his disposal.

But Buffet took a different path.

He chose the simplest, most boring investment: the S&P 500 index, which tracks the performance of the 500 largest public companies in the United States.

The bet began on January 1, 2008.

But that fall, the financial crisis hit, and the S&P 500 plunged by 37%.

Buffet was significantly affected, while Ted's funds, having shorted the market, managed to reduce their losses.

Ted led with confidence, holding a significant advantage.

Three years later, in 2011, the S&P 500’s return began catching up with Ted’s hedge funds.

The gap closed.

Then, over the next seven years, Buffet’s choice surged by 125.8%, far surpassing the hedge funds' 36% return.

Buffet's simple and patient approach worked better than complex strategies, showing the power of straightforward investing.

Buffet won the bet.

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Active or Passive Investor

Ted bet on an active approach.

The hedge funds he chose can make money whether the market goes up or down.

They use methods like short selling and leverage.

You need to be a finance expert to use their strategies.

For this reason, they charge high fees.

Despite these things, more than 90% of them fail to outperform the market over a long period.

Warren Buffet’s approach was a passive one.

Anyone can use his strategy.

For a beginner, it is completely counterintuitive to believe that simply buying and waiting can yield better results than most Wall Street traders.

It is intuitive to do something to achieve results.

To be active.

Why does such a simple strategy, which does not involve great effort, yield better results than an army of well-paid traders and analysts who do this full-time?

Because, in the short term, market movements are random.

The immediate feedback from active traders' decisions doesn't truly indicate the quality of their decision-making process.

This activity is more like playing roulette than playing chess.

But, this doesn't mean that there are no professionals that outperform the market.

Warren Buffet has beaten the market’s return by a large margin.

Since 1965, when he began his activity, he has had a return of 3.7M %, while the S&P 500 index has had only 24,000%.

However, with this bet, he aimed to show that active experts do not outperform a regular person who is patient.

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Freedom = Poverty

Financial markets give you a sense of freedom.

Mark Douglas explains in his book, Trading in the Zone, how trading and investing offer an extraordinary level of freedom.

Freedom that most of us are not used to.

For example:

The market doesn't provide you with a set of rules upfront like a job does.

You can invest in whatever you want.

You can buy crypto, stocks, bonds, futures contracts, etc.

You can either use solely your own funds or leverage the funds of others.

All this freedom turns markets into casinos.

Decisions are made randomly.

The lack of rules shifts decision-making from reason to emotion.

You invest in what you believe will bring you more money to satisfy your greed.

You sell in panic to escape fear.

At the same time, you feel your trades are unique.

You think you’re the only one who sees what the RSI is doing or how the EMAs have crossed.

In reality, you make decisions just like everyone else.

Why do you suffer losses? (Study on 100 people)

Over the past year, I've had private consultations with around 100 people.

Most of them considered themselves advanced in the crypto market.

At the beginning of the consultation, I ask each person:

What is your plan?

Their answer, almost identical, is:

1. They are aware they cannot predict the market in the short term.
   

2. They tell me with hope:

   • how they have invested in coin X,

   • which they will sell when altseason arrives at price Y,

   • and how they will buy bitcoin,

   • but “not now”, because “it's too high”,

   • at the next dip which will happen in month Z

When I start the discussion with a new person, it feels like I'm hearing the one who came before.

Most of them contradict themselves.

They tell me they can't predict the market, then they start predicting it.

If you put them all in a room, it would be like a chorus of people repeating the same things.

They end up sabotaging themselves like this.

Noticing the same pattern of responses, I always think to myself:

I feel so powerless hearing them, knowing they will most likely lose money and time.

It's difficult to get them to understand.

They come with pre-formed hopes, and even if they ask for your help, you can't change their mindset.

Something tells them they've made poor decisions.

They hope, however, that I will confirm their beliefs.

But hope is not a strategy.

Everyone wants to make money and hopes the market will move in their favor.

I try to explain to them how the crypto market works from the inside.

• How crypto projects, without a profit-generating operational activity, dump on their own investors;
  

• How they can't predict when the next altseason will be or what bitcoin will do;

I see on their faces how I shatter their hopes.

Some of them even revolt.

It's like in the The Matrix movie, when Neo, after taking the red pill, learns the truth.

He discovers that the world he was born and lived in is not real.

It represents a lie to keep him enslaved as a source of electrical energy for Artificial Intelligence.

The market gives you absolute freedom.

Including the freedom to believe you can predict its next moves.

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The only thing you need is...

Benjamin Graham was Warren Buffet's mentor.

In his book, The Intelligent Investor, he introduces the concept of Mr. Market.

Mr. Market is a fictional character embodying all the emotions generated by the market.

Let's say Mr. Market knocks on your door every day.

You open it, and he starts yelling excitedly:

"Buy quickly, the market has exploded, do it now before it goes up even more... come on, you're missing out on a ton of money!" 🤑

Another day, he's in a panic:

"Sell!! It dropped 15% in an hour! We're losing everything... Sell now!" 😱

On yet another day, he's crying:

"We're ruined, we've lost 70%... life isn't worth living... what do we do??" 😞

Every day, the emotions stirred up by Mr. Market impact your decisions.

Listening to Mr. Market is sheer madness.

But most people do, hoping to make money at the same time.

This hope is shared by Mr. Market.

Benjamin said:

To achieve results as an investor or trader, you need to answer the following question:

What is my advantage against Mr. Market in this game?

What do I know that Mr. Market doesn't?

Or:

What actions do I take to gain an edge over the crowd?

If you don't have an answer, you don't have an edge.

If you don't have an edge and still invest/trade, you become Mr. Market.

Others who have an edge will profit from your random decisions and take your money.

Allocating capital without knowing your edge is like betting you can beat Nadal in a tennis match.

You might get a couple of serves in, but in the end, there's no way you can win.

The only thing you need is to have an edge against Mr. Market.

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4 Types of Edges Against the Crowd and Markets

The market is like a game.

To win, you need to outperform everyone else.

Discovering your edge in any game is a challenge.

However, as Warren Buffet demonstrated with his bet, there are counterintuitive strategies that give you an edge.

I've identified four types of edges in the markets:

1. Inside information

Most money in this industry is made by exchanges, market makers, marketers, and developers who are the first to access information about upcoming project developments.

The people closest to the decision-makers, who get information that most others don't, make the most money.

For example:

You know someone who works on a crypto project.

He gives you information about what's going to happen, and you use it to buy or sell before the majority.

In regulated capital markets, this is considered theft and can lead to imprisonment.

This strategy doesn't rely on your skills or capabilities in this game.

You could be the best trader and still stand no chance against insiders.

And if you're gullible enough to trust their story after conducting so-called "fundamental analysis," your chances of being outmaneuvered by insiders increase significantly.

Having Inside information gives you the greatest edge.

You just need to be cautious about whether it's morally and legally acceptable.

2. Resilience in Long-Term Exposure

In 2016, I discovered the financial world.

I learned fundamental analysis of publicly listed companies.

I understood how important it is to have an edge against the crowd.

As a beginner, trading was tempting.

But I knew I had no edge to consistently make money from the market.

I decided that 90% of funds should be invested long-term in BTC.

Best decision.

In the 2021 bull market, the YouTube audience was mostly interested in active trading.

I tried to show them that they could have an edge just by being patient.

As Buffet demonstrated.

When bitcoin hit the record of $71,000, I told them I wouldn't sell.

Right after it dropped, the haters appeared.

Now the saying rings true: "The last laugh is the best laugh."

• How many are capable of not selling for at least 5 years?
  

• How many are capable of not trading randomly?
  

• How many are capable of not checking the price for months?
  

• How many are capable of not falling into the trap of altcoins promoted by influencers?
  

• How many are capable of not reacting to Mr. Market's outbursts?

Very few.

As Warren Buffet demonstrated, this strategy gives you the greatest advantage with the least effort.

3. Intersection of Two or More Expertise Areas

This strategy requires some effort and active involvement.

An expert in chemical production with financial knowledge can more easily spot investment opportunities in this sector compared to someone without these two skills.

The expert has an advantage.

If a person without these skills invests in this sector, they most likely bought at a bad time, from the expert who sold.

The expert walked away with the money, and the person with the experience.

Recently, I decided to allocate capital to MicroStrategy.

The intersection of understanding financial analysis of listed companies and bitcoin fundamentals helped me see this opportunity.

Two reasons led me to choose MSTR:

1. It has lower risk than any altcoin;

2. It mirrors bitcoin's price movements, with a return of 2/3 times higher.

Financial reports show how Saylor issues cheap debt, with an average interest rate of 0.8%, to buy bitcoin.

Most who don't understand bitcoin think what Saylor does is risky.

If you think from their perspective, they're right.

If you don't understand what bitcoin is, Saylor's strategy is risky.

My advantage consists of:

• Understanding MSTR's fundamental analysis.

• Understanding bitcoin fundamentals.

• Resilience to volatility.

• A holding plan of at least 4 years, if the financial reports look good.

Compared to:

• The majority who can't handle high volatility (MSTR is twice as volatile as BTC).

• Most participants who enter driven by fear of missing out or sell in panic.

• The 20% of traders who are short because they don't trust Bitcoin or MicroStrategy.

• Most traditional investors who don't see this as an opportunity because they don't understand Bitcoin.

The intersection of two or more areas of expertise can give you an advantage.

But you need to be aware and accept that there are risks.

What I've said above is not investment advice.

If you want to read more about this, click here.

4. Developing a Rule-Based Strategy

Paul is my friend.

And he is a crypto trader since 2016.

The last time I spoke with him, I tried to “steal” his strategy.

It's very simple.

He doesn't care what the market does, whether it goes up or down.

He positions himself based on price action.

Usually, after a period of sideways movement, he waits to see what direction the market confirms and then enters.

This means months of waiting.

He waits for the opportunity to come and trade only a few times a year.

This is his advantage.

But he didn't reach this advantage easily.

It took about 4 years to become profitable.

4 years in which he did nothing but trading.

Every trader needs to develop their own strategy that gives them an advantage against market.

For this, you need to:

• Have capital that you will lose initially;

• Have time to do this full-time;

• Have resources to support yourself for years until you become profitable;

• Ideally: Have a mentor who has been doing this for decades.

If you don't have these, along with the determination to make a career out of it, your chances of gaining an edge over other traders are minimal.

After years of testing, work, and patience, if you meet the above requirements, your chances of gaining an advantage increase.

But most traders:

• Treat the market like tourists;

• Trade based on Mr. Market's reactions;

• Don't have a plan to reduce emotions;

• Think they can make easy money.

Without an edge, it's like betting on yourself in a tennis match against Nadal.

Strategies that offer an advantage are usually simple.

But it takes a long time to master.

If you don't plan to make a career out of this, you'd better choose another advantage.

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These are the 4 edges I've identified in the financial market game.

To succeed, you need to choose an edge.

But that's not enough.

Once you've chosen a straregy, the journey to obtain this advantage begins.

This journey is a war.

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Declaring War Against the Market

Gustave Le Bon, in his work "The Crowd: A Study of the Popular Mind", states:

Have you noticed how, during riots, people start breaking things, stealing, and doing stuff they normally wouldn't do on their own?

The same applies to the markets.

When you buy out of fear of missing out (FOMO) or sell in panic, you join the crowd.

Most of the crowd acts impulsively, guided by emotions.

You can see this on chart.

The chart influences you, triggering your emotions as well.

Emotions can dominate you, pushing you to act in line with the crowd.

By striving to gain an edge, you learn to resist this temptation.

To escape the crowd’s dominance, you have to master your emotions.

You build resilience by overcoming the emotions you experience.

That's how you separate yourself from the crowd.

Once you do, you've gained your edge.

That's why any strategy you choose only helps to a certain extent.

In reality, it's not enough.

There's much more involved.

It's a psychological war between you, your emotions, and the crowd.

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Why is it crucial to win this battle and separate yourself from the crowd?

One morning, as you sip your coffee and scroll through social media, you stumble upon an article.

The date catches your eye—it was posted five years ago.

You realize you read it when it first came out.

Suddenly, two scenarios flash before your eyes:

Scenario 1

You're still in the same place, your financial situation unchanged, no progress made.

Bitcoin is soaring in a bull market, hitting $650,000.

Most people still call it a Ponzi scheme, but you know better.

You're not surprised by the price.

You read the article and see that since it was written, Bitcoin has increased tenfold.

Over these five years, you've been chasing airdrops and waiting for the perfect entry point.

You've bought and sold based on Mr. Market's whims.

You picked a few cryptocurrencies—one made a nice profit, but you “reinvested” the money in others, now plummeting.

You're not at a loss, but you're not much better off than five years ago.

As you reread the article, it hits you—you've lost the bet.

Nadal has beaten you in the tennis match.

For two years, you even forgot about the market.

Nothing moved...

You realize you were just a "tourist."

You didn't take this game seriously.

You didn't secure an edge against others.

You've wasted five years...

If you had adopted the simplest strategy and regularly bought Bitcoin, you could now be fulfilling your dream of taking a sabbatical year to travel the world.

But instead, you have to go to bed because you have work tomorrow.

You wonder, "What am I doing wrong?" even though you know the answer deep down.

Scenario 2

It's the weekend.

You're expecting friends and family to visit.

You feel satisfied, calm, and peaceful.

Bitcoin has reached $650,000, and you can't believe it.

Now, besides your professional activity, you have a solid base.

You have enough money to do what you want.

Maybe you want to travel for a year, pay off your loans, or help your family.

Whatever you wish for, now you can have it.

Five years ago, you consciously chose your advantage.

You decided to regularly buy Bitcoin.

The idea was simple: don't let others have an edge against you by treating the market like a casino.

In these past five years, you've made many sacrifices to accumulate as much as possible.

You've given up vacations, nights out, unnecessary expenses, and worked overtime.

Now, you realize it was worth it.

This makes you even more ambitious.

You truly understand what Bitcoin means, and you're not willing to sell everything.

You just want to reward yourself a little.

The satisfaction you feel gives you the ambition to accumulate more.

You're thinking of solutions.

But you pause this thought because your friends have arrived...

You're about to have fun and plan a vacation.

You go to greet them.

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I have good news...

We're still in the present.

Five years haven't gone by yet.

This means you still have control over your decisions.

You can position yourself as close as possible to freedom and prosperity.

No matter what your behavior in the market will be, the next 5 years will pass anyway.

The final result depends on one decision.

The decision to achive your edge against the crowd and to win the war against the market.

Over seven years ago, I chose my edge and separated myself from the crowd.

Now, I have the life I want.

I’m free.

Thank you for reading,
Dan

P.S. If you decided to transform your life, and you want my help, simply reply to this email with "Help me."

I'll help you to achive your edge with my powerful strategy that can multiply your wealth by 10X in few years.

(note: this isn't free & only 3 spots available).