Do you care about freedom and independence? I’m sure you do!
Here’s the problem. For most people, that’s simple lip service.
When people are put under pressure, they change their tune and start looking for “strong leadership.”
Traders/Investors in distress often call for their superman and seek directions from assorted gurus.
Let’s talk about the types of gurus you can find in the crypto market today:
1 - Market Cycle Gurus - According to Elder Alexander, Market Gurus popup every market cycle, he says every 4 years, and their fame lasts about 2-3 years. It generally coincides with a major bull market. As it is easy to become a Guru when things are going very well.
- What he/she says becomes a self-fulfilling prophecy in a bull market
- These Gurus always come from the fringes of market analysis. They never are establishment analysts.
- These Gurus remain famous for as long as the market behaves according to his theories
- They are often ignored until his theory becomes correct
- When the theory stops working, then love turns to hatred
WHAT DO TO?
- When you recognize a successful new Guru emerge, it IS profitable to jump on his bandwagon…however, it is even more imporatnt to recognize when a Guru has reached his peak.
- All Gurus crash, and by definition, they crash from the height of their fame.
2 - Magic Method Gurus - Becomes noticed in the financial scene after discovering a new analytic or trading method.
- People are willing to pay top dollar for better trading tools…
- As soon as enough people become familiar with a new method and test it in the markets, it inevitably deteriorates and starts losing popularity
- Markets are forever chanigng, and methods that worked yesterday are not likely to work today, and even less likely to work a year from now!
- However, we talked about this in B90X Day 38 around “automation myth!”
WHAT TO DO?
- Experts say that the only way to profit on these magic method Gurus is if you’re one of the first to use the method that has been validated. If you aren’t a first mover, you’ll often not be able to make much profit
- I believe that the “automation myth” is very much in play here. I don’t go buy methods and tools created by others. I use my own. I can “control” my own. I can experiment on my own.
3 - Dead Gurus - The legend of a dead Guru and his/her financial prowess will still impress many today.
- These are men and women who have produced original research for many many years, then get lucky when the markets turn their way
- They become a Market Cycle Guru and even a Magic Method Guru potentially at one point in time
WHAT TO DO?
I personally read a ton of books by dead people. I believe that extracting PRINCIPLES over PRACTICES are far more important ideas to learn from.
Looking at the meta of their lives, understanding how they disciplined themselves and learned by doing is what you should gleen from such individuals.
As an intelligent trader, you must realized that in the long run, no guru is going to make you rich. You have to work on that yourself!
Guru’s aren’t a bad thing. I think Gurus can help you learn far faster than most, however, I think it’s important to contexualize what they say to their particular time period.
IN TODAYS B90X - Tell us a story about how you’ve been sucked into the Guru theory. We’d love to learn about people you’ve come across. What did you learn? How can you help us learn from what you’ve extracted?