Research Summary
The report discusses the author’s approach to higher time frame (HTF) investing, emphasizing the importance of patience and simplicity in trading. It also highlights the different strategies for varying levels of net worth and the potential benefits of HTF trading.
Key Takeaways
Shifting Trading Timeframes
- Transition to Longer Trades: The author plans to shift from trading within hours to trading within days by 2024. This change is driven by the belief that simplicity is beneficial in financial markets and that too many trades can be detrimental.
High Conviction Bet Trading Style
- Asymmetric Opportunities: The author prefers to bet big on asymmetric opportunities, which are often capital-intensive and have long lockup periods. This approach is not problematic but rather a characteristic of the type of trades the author engages in.
Trading Strategies for Different Net Worths
- Varied Risk Appetite: The report suggests that individuals with different net worths should adopt different trading strategies. For instance, those with less than five figures should focus on airdrops/memecoins, while those with six figures and above can target large caps.
Patience in HTF Trading
- Patience as an Edge: The author emphasizes the importance of patience in HTF trading. Despite the potential opportunity cost of other trades, if an investor’s edge lies in HTF trading, they should stick to it. The author cites Michael Saylor as an example of a successful HTF trader.
Long-Term Market Trends
- Markets Rise in the Long Term: The report underscores the long-term upward trend of markets. It suggests that the hit rate of taking a long position on Bitcoin on the monthly time frame is higher than on the hourly time frame, reinforcing the benefits of HTF trading.
Actionable Insights
- Consider Your Trading Style: Traders should evaluate their trading style and consider whether it aligns with their financial goals and risk appetite. If HTF trading suits their style and they have the patience for it, they should stick to it.
- Assess Your Risk Appetite: Depending on their net worth, traders should adjust their risk appetite and trading strategies accordingly. Those with smaller portfolios might need to take on higher risk to maximize returns.
- Understand Long-Term Market Trends: Traders should familiarize themselves with long-term market trends. Recognizing that markets generally rise in the long term can inform their trading strategies and potentially increase their success rate.
