#77 Trader Koz

June 12, 2023

PARTNER:

The Haven, one of the leading educational platforms for crypto traders, is Alpha Mail’s go to for all things education.

Featuring exclusive content from: @CryptoUB, @LomahCrypto, @pierre_crypt0, @LSDinmycoffee, and @ColdBloodShill, The Haven offers comprehensive resources such as livestreams, educational videos, journals, daily market updates and a large, helpful and welcoming community.

Join The Haven today.

TraderKoz is a price action Crypto trader and investor who got into Crypto in 2017 and hasn’t looked back.

What attracted you to trading?

I got into trading specifically just through Crypto. When I found out about the Crypto space in 2017, I lost a bunch of money right off the bat and then told myself I would figure this thing out and not just give up. So while I was in university, I started dedicating the majority of my time to learning how to trade. Part of what attracted me to trading was the freedom as well as the unlimited upside. How much money you make from trading is all up to you. You don’t wait for your boss to give you a promotion, you don’t wait for someone to call you with some opportunity, you just make money depending on how much time and effort you put into it. There is just about no ceiling to cap your growth.

How much money you make from trading is all up to you. You don’t wait for your boss to give you a promotion, you don’t wait for someone to call you with some opportunity

How long have you been trading, and what markets have you traded over your career?

I got into trading at the same time that I got into Crypto as a whole, which was in 2017 during Bitcoin’s historic run up to 20k. I traded Crypto primarily but, over the years, would dabble a little bit in equities, forex and commodities when there was a lack of volatility in the Crypto space. However, I would say I am primarily a Crypto trader through and through.

Is there anything in particular that appeals to you about crypto vs trad markets? Do you have an ideological interest in the space?

I think that there is a future for crypto, and I definitely believe in it. Who knows how long it will take, but there are clearly major flaws in every fiat system in the world, and all previous fiat systems have failed. I try to accumulate crypto for some long-term spot bags as well as just using it as a market that I leverage trade. 

there are clearly major flaws in every fiat system in the world, and all previous fiat systems have failed

How long did it take you to become profitable? Were there any major milestones where things just started to click?

I had the advantage of being able to go through the learning phase of trading while I was still in university, and I wasn’t relying on producing income through trading immediately. It took me about two years to become profitable. Initially, I was trying different strategies and it probably took 6 months or so to find something that really clicked for me. I think what put me over the edge, though, was when I started journaling more seriously. I think journaling is something that can really help you take the next step. There’s just so much useful data to keep track of as traders that we can’t expect our brain to just automatically remember for us. You can see what time of day or what day of the week you’re more profitable, you can see which setups have higher strike rates, you can see which setups aren’t profitable in general, you can see if your shorter duration vs longer duration trades are more profitable, etc. There is an absurd amount of useful data that you can collect through journaling.

journaling is something that can really help you take the next step.

Do you have any examples of something you’ve learned about yourself or your system through journaling? I.e. a big mistake you were making or not trading certain events etc.

I think the most helpful things are learning what mistakes you make the most often and then also what setups are the most profitable for you. For instance, mistakes that I have made a lot in the past were revenge trading, taking setups that weren’t actually there because I wanted to be involved in the market, and flip-flopping bias within a smaller range. When you learn those things about yourself and the impact that they’re actually making on your overall PnL, it makes it easier to cut them out.

What does a typical day look like for you?

The typical day for me starts at 8:00 or 8:30 in the morning. Get up, turn on the espresso machine and take a look at the charts and Twitter to see what I missed overnight. I’ll go through a handful of coins I’ve been watching while I have my coffee in the morning. I try to get a couple of hours of crypto work done in the morning and then head to the gym. The rest of the day usually consists of either some golf or hanging out with friends but the common denominator is keeping a close eye on my phone if prices are near any levels that I’m interested in doing business at. 

Who did you look up to when you first started trading?

There were a handful of Crypto OG’s I looked up to including Hsaka, Cobie, Mayne, TraderSZ, and I’m sure there are a few others I am forgetting. 

Tell us about your most memorable trade.

I think absolutely nailing FTT became one of my most memorable trades after what ended up happening with FTX. I had publicly been talking about accumulating as much FTT in the single digits as I could, most of it around $4 and targeting $40-50. Got rid of all of it in that range which was my original target. And I’m sure some people will make fun of me for not nailing the top but hey, I had a plan and stuck to it and less than a year later, it traded at nearly $0 and is currently sitting under $1. 

I’m sure some people will make fun of me for not nailing the top but hey, I had a plan and stuck to it

What’s the best trading advice you’ve been given?

The best advice I’ve been given is to be disciplined and to be meticulous with my journaling. That is advice that I now try to give to aspiring traders.

What drives you to keep trading?

Personal goals and the addiction to the Crypto space as a whole. There is still a lot more I want to accomplish and market cycles I want to experience.

Do you think crypto is particularly addictive? What makes it so?

I think crypto is very addictive. The space is constantly changing, there’s so much to keep up on and I just think I’m a bit addicted to trading crypto as a whole. There’s nothing that is more fun than nailing a trade or seeing a spot investment idea play out over a long period of time. It’s what keeps people coming back for more.

Would you say you’ve ‘made it’? If not, what does ‘making it’ look like to you?

Under my definition of making it, I would say no. This might sound foolish to a lot of people but I don’t think I’ll be done with the crypto space until I reach 9 figures net worth. To me, making it means having financial freedom and spending as much time with people that I love. I don’t have kids yet but when my wife and I decide to, I want to be as present in their lives as I can.

I don’t think I’ll be done with the crypto space until I reach 9 figures net worth

Trading:

What's the most important quality in a trader and why?

I think the most important quality is discipline. If you don’t have discipline, you’ll make rash decisions, you’ll be susceptible to FOMO, you won’t stick to your plans and you likely won’t survive. 

Is discipline something that comes easily to you?

I have definitely suffered from FOMO before, especially when I was first starting. I felt the need to catch every move, which we obviously know is impossible. I think I’m pretty disciplined in other areas of life but it was just a matter of having that discipline in trading, which took a bit of time. It takes a while to learn that there will be infinite opportunities and you’ll miss plenty of pumps but there will always be another trade.

there will be infinite opportunities and you’ll miss plenty of pumps but there will always be another trade.

How would you describe the way you trade?

I would describe my style of trading as support and resistance combined with ranges and liquidity. What I do isn’t rocket science, it's all pretty simple. The edge that I have comes down to execution and discretion when needed. I’ve always said 95% of people can have really great TA but 95% of people won’t be profitable traders.

Why do you think so many fail at execution? Does it come back to discipline as above?

Discipline and being in charge of your emotions are both hard things to do. There are just so many layers to execution when it comes to trading. Not only do you need to get your entry right, but you also need to hold through ugly candles and drawdowns, you need to not take profit too early, you need to not take profit too late, and you need to not tighten your stop too much. So many mistakes come down to greed. Whether it's the greed of making more or the greed of avoiding a loss. People will want to cut a trade at breakeven so they don’t lose money, and then it ends up hitting your target. I’m not sure if I would call all of that discipline-based but there’s just a lot of trading wisdom that you get over time and you see which of those mistakes you make the most often and then try and reduce them.

So many mistakes come down to greed. Whether it's the greed of making more or the greed of avoiding a loss.

Has the way you trade changed over time?

Yes, absolutely. When I first started I tried out Elliott Wave Theory and used a bunch of indicators. I think indicators can be helpful but when you first start trading, I think people tend to use them as a crutch instead of as confluence. 

Why do you think you have success trading?

I learned a lot of hard lessons early on and was able to take wisdom from that instead of ignoring it. Also, my commitment to risk management, journaling, and sticking to my game plan as often as I can.

What's the worst thing about trading and why?

The worst thing about trading is that sometimes you can put in a ton of work and still lose money that day/week/month, and that just is the opposite of how most other career works. When you go put in your hours at your job, you get paid. Sometimes with trading, you put in your hours and you still lose money and that can be super frustrating. Now if you have a profitable strategy and you have an edge, then in the long run, it won’t be that big of a deal. 

How do you cope with variance? 

It’s tough, but just trusting the process of what I’ve spent so long putting time and effort into. It isn’t a statistical anomaly to lose 5-10 trades in a row if you have a strike rate of 30-40%. And then you just need to have the conviction to not stop taking your setups because as soon as you do that, you’ll start missing out on a ton of winners.

It isn’t a statistical anomaly to lose 5-10 trades in a row if you have a strike rate of 30-40%.

What's something you've learned in the last 6 months that has made you a better trader?

I’ve learned that when I’m going to the gym 4-5 times a week, getting 7-8 hours of sleep and taking care of my body in general, I have better performance when it comes to trading. 

What's the mistake you find hardest to avoid when trading? Any tips to avoid it?

I think swallowing your pride and recognizing when you’re wrong without trying to chase or revenge trade can be quite difficult. For instance, you get stopped out but it's just a wick, and it sweeps the low where your stop was. It can be very hard not to just jump back in and convince yourself that you should take another shot. I think the best way to avoid it can come through journaling. If you see how many trades you lose because they are “revenge trades” it will sink in quicker that it really is something you need to avoid. 

swallowing your pride and recognizing when you’re wrong without trying to chase or revenge trade can be quite difficult.

If you could give someone starting trading tomorrow one piece of advice, what would it be and why?

I would say to find what trading style you want to use and start journaling right away. I feel like a broken record but journaling really is the key. You’ll learn whether or not the strategy you’re trying is profitable or not and you’ll be able to move on to something else or make adjustments where needed, all because of journaling.

How would you describe your relationship with risk?

I’ve always been a risk taker, so it probably just makes sense that I’ve ended up trading crypto - one of the most volatile assets in the world. I’m sure my relationship with risk will change over the years but since I’m still in my mid-twenties, I love risk and I am comfortable with it.

What goals do you set for your trading?

It isn’t really a dollar amount goal but my main goal is to just get better month over month, year over year. I want to always be improving and working on my craft. The sky is the limit if you continually improve.

Fill in the blanks

  • Most traders would be better off trading with wider stops even though it might feel cool to hit really high R trades.
  • What separates the pros from the rest is risk management and discipline.
  • A good trader should never let their emotions take over.
  • The biggest misconception about trading is that you’ll get rich quickly.