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How Einstein Improved My Trading Results

Imagine staring into the abyss of your trading screen, where every decision feels like a leap of faith, and success is as elusive as a mirage in the desert. 

Now, what if I told you that the key to breaking this cycle, to turning those leaps of faith into strides of confidence, was revealed by Albert Einstein not in a complex theory of relativity, but in a single, transformative word: “invert.

A Lesson from Einstein: The Power of Inversion

Albert Einstein famously embraced the concept of inversion. He believed that to truly excel or solve a problem, one should first understand how to produce the opposite result. 

It’s a principle that flips conventional wisdom on its head, urging us to view our objectives from an entirely new angle. 

Plus, from an evolutionary point-of-view, our brains are programmed on problems (aka surviving). Therefore, it is much easier to identify a huge list of problems instead of looking for solutions (in a first step).

Here’s How I Applied Einstein’s Concept To My Trading Strategy

In my journey through the world of cryptocurrency trading, I decided to apply Einstein’s wisdom. The exercise was enlightening. Here’s what I did:

Step 1: Envisioning Failure

First, I listed all the ways I could spectacularly fail at trading:

  • Making decisions based on emotions.
  • Always trying to catch a hype.
  • Ignoring the safety nets like stop-loss orders.
  • Randomly selecting coins without any research.
  • Overlooking market analysis and trading indicators.
  • Etc.

I ended up with writing down a list of like 30 epic fails in just 10 minutes. It’s impressive how fast our brains can think of problem 🙂

Step 2: The Art of Inversion

The next step was to invert these scenarios. 

This means, I turned the problems into solutions — which was a super straight-forward task. Here are a few examples:

  • Making decisions based on emotions -> Eliminate emotions from trading decisions and trade purely on a fact-based system.
  • Ingoring the safety nets like stop-loss -> Implement and strictly adhere to risk management practices.
  • Overlooking market analysis and trading indicators -> Integrate market analysis and trading indicators into the decision-making process to inform and guide trading strategies.

Again, this exercise took me probably 10 minutes.

Step 3: Breaking Down the Solutions Inti Skills & Actions

And here’s the last step and usually the one that is slightly more complex. 

You have to understand that solutions are a collection skills and actions. Therefore, it is crucial to dive deeper and identify the required measures. 

For instance, “Eliminate emotions from trading decisions and trade purely on a fact-based system” could involve skills and actions, such as:

  • Setting Up an Emotions Journal: Document your emotional state before, during, and after trades to identify patterns and triggers.
  • Defining Fact-Based/Rule-Based Entries and Exits: Create a trading plan that outlines when to enter and exit trades based on objective criteria, not gut feelings.
  • Sticking to the Trade’s Goals: Once a trade is in motion, avoid altering its objectives based on market noise or emotions. Stick to the plan.
  • Etc.

It’s the granular actions that breathe life into vague solutions, making them tangible and actionable. 

By specifying what each solution entails, we transform abstract concepts into a concrete roadmap for trading success.

The Transformative Impact on My Trading

This three-step inversion technique didn’t just help me avoid common pitfalls; it revolutionized my trading strategy. 

By understanding the pathways to failure and translating desired solutions into specific skills/actions, I was better equipped to navigate towards success.

What’s Next?

Whenever you are ready, there are 3 ways I can help you:

#1 Ready to trade like a pro? Check out our Strategy OS program giving you access to some of the most successful and robust trading strategies >>> Discover More Here

#2 Need to get a better structure for your trade? Discover our Trading OS containing trading journals, asset manager, and risk assessment templates. >>> It’s available for free here

#3 Never want to miss a trading signal and ready to automate your trading? Download our app and get trading signals for more than 200 crypto tokens. >>> Available on iOS and Android

Ben Walther
Ben Walther

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