The Emporos Style

The Emporos Approach

A Blueprint for our speculative profession

As our presence grows, we must recognize that the trading landscape is filled with charlatans and inexperienced individuals. With over five years of experience, I've learned to selectively navigate these waters and aim to help others master this art, save money, and gain fresh insight into systems and concepts. Below, I'll share three concepts and strategies essential to your trading journey.

The Concept of Timeframe, Ego, and Entry

The timeframe is crucial when presenting an idea, such as our successful Bitcoin short from 56,000 to 30,000. Most traders recognize that timeframe is a vital aspect of trading, prioritizing profit over being right. This can be challenging as ego often interferes. Your entry point is the only aspect of trading you control, and for some, the lack of control over other factors can be daunting.

It's important to remember that being wrong is part of trading and will happen frequently. Discussing these concepts aims to eliminate inexperience and avoid the pitfalls of chasing good ideas or succumbing to the "buy-buy-buy" mentality at every support level.

Here's a starter guide for both veteran and novice traders:

Portfolio Organization

First, denominate your capital in the currency of your choice, such as USD, EUR, or BTC.

For instance, if you have a Bitcoin portfolio, your goal is either to grow your Bitcoin holdings or your USD balance. Refrain from mixing these objectives. The organization is vital, and haphazardly investing won't make you rich.

I recommend having a Bitcoin cold storage to grow your Bitcoin holdings and occasionally allocate to other cryptocurrencies.

Also, maintain a separate trading portfolio based on your risk tolerance in your preferred currency. For simplicity, let's assume the trading portfolio is in USD.

The Profit Ratio

Understanding the profit ratio is vital. Day trading and scalping have their profit calculations. For every idea, assign a potential profit ratio. For example, if you predict the oil price will rise, establish a predetermined percentage for both possible loss and gain. If managed properly, you should achieve a positive profit ratio, such as 3:1 – risking $100 to gain $300.

Trade Management

Of course, it can be more complicated. The end goal is a positive profit ratio, and platforms like TradingView offer helpful tools for calculating account sizes and trade profit/loss. The art lies in managing trades while adhering to your risk parameters. Invalidations and stop losses contribute to the challenge of trading. Taking excessive risks for huge profits often leads to failure; the goal is survival and ultimately capitalizing on a solid idea to make substantial profits.

If you've read this far, I hope you've enjoyed our quick summary of the Emporos approach and that it helps clarify any confusion.

Thank you for reading,

Emporos

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