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Ponzi Trader is a crypto trader, investor, and a presenter of the Magnet Money Show.
What attracted you to trading?
Financial Freedom. I was always an “anything but a job” kid. Anywhere that I could, I would find arbitrage. Whether I was selling weed, or flipping motorcycles/cars/watches from craigslist. I refused to get a traditional 9-5 job. The concept of trading immediately attracted me. There is nothing wrong with a 9-5. It just isn’t for me. Some people have comfort in a 9-5, but I wanted freedom of my own schedule. Freedom of my own time.
How long have you been trading?
I really started trading in 2017, granted I had no idea what I was doing. I’d say 2019 was when things became real. Unfortunately, it wasn’t 2017 that taught me, it was 2018. The bear market was more of a lesson than the bull market. I didn't get into any ICO’s but I rode every shitcoin on Cryptopia, Binance, and Bittrex at the time. I made serious multiples off of four figures. By halfway through 2018, I had about $10,000 left.
Unfortunately, it wasn’t 2017 that taught me, it was 2018. The bear market was more of a lesson than the bull market.
How long did it take you to become profitable?
Probably about 3 years. I made free money at the tail end of the bull market but casually lost it all. However, I was hooked and needed to figure out what I did wrong. I wasn’t using any risk management. I wasn’t taking profit. I was round-tripping everything. I actually joined a paid group and it was worthless. There are definitely paid groups that provide a lot of value, but that one wasn’t it, haha. Cryptocred was one of the guys on YouTube that I actually watched through. I learned the most through trial, error, observation, and conversation. Joining the right trading groups shaped me to become the trader I am today.
I wasn’t using any risk management. I wasn’t taking profit. I was round-tripping everything.
Do you have a daily routine you'd be willing to share?
I’m sure everyone has heard it before, but I'm a firm believer that starting your day by making your bed is important. It sets the precedent for a clean and productive day. The first 10 minutes of my day are sunlight exposure from either my windows or from walking with my dog and girlfriend. These are followed by a tall glass of water with lime and salt to get hydrated.
I'm a firm believer that starting your day by making your bed is important.
What's the worst thing about trading?
The dopamine dumps. High swings on crazy runs into some lows and losses. Happens every cycle and fucks with your chemistry. Downward spirals are intense. You start churning, thinking about making back what you lost, and you simply lose more.
A pretty good example was recently. In Q1 of this year, I traded pretty well. As we rolled into Q2 I sized up at the wrong time. I began taking abnormally large positions at non-inflection points. Once my account started to churn, I found myself in a bit of a spiral. I had to actually stop trading and turn notifications off of Twitter to be able to control myself. Once I stepped back, the mistakes I had been making were so clear.
Downward spirals are intense. You start churning, thinking about making back what you lost, and you simply lose more.
Would you share with us your most memorable trade?
Probably 2021, around Jan-Feb. Was sitting isolated beachside in South America reading Reminisces of a Stock Operator, absolutely slamming alts. All setups had the Livermore pattern, which was quite ironic, and I was 10xing accounts like they were candy.
The Livermore cone pattern is a solid method of identifying accumulation before a blowoff.
What’s the best trading advice you’ve been given?
Don't overleverage and don’t overtrade. If you run out of chips, you won’t be able to play when the time is right. Most conditions don't call for a trade, so don't force one. There are 5 times out of the year when you can pick up money off the ground. Those are the only times you really should push the envelope. Life-changing money is made in those times. Wealth is not linear.
If you run out of chips, you won’t be able to play when the time is right. Wealth is not linear.
What's the most important quality in a trader?
Discipline and self-correcting behaviors.
Did you try and emulate any traders when you started?
I honestly emulate traders now. Rookiexbt and Keyboardmonkey. The nuts on both of these lads are impressive. Rookie knows how to multiply in a trending environment. KBM knows how to slam inflection points.
Why do you think you have success trading?
Extreme risk tolerance. Every year my risk tolerance adjusts a bit more as I get older. It truly is a psychotic trait that allows you to level up. I’ve become more risk-averse now. Now that I own a home and have a serious relationship, I’m not willing to go broke tomorrow.
Risk tolerance is a psychotic trait that allows you to level up.
What's something you've learned in the last six months that has made you a better trader?
Those levels you thought would never get revisited? 99% of the time, they will. Crypto makes you reconsider your ‘certainties’.
Those levels you thought would never get revisited? 99% of the time, they will. Crypto makes you reconsider your ‘certainties’.
What's the mistake you find hardest to avoid when trading?
Taking profit/cutting losses. Sometimes you find yourself in a position where your losers are outweighing your winners, and naturally, you should cut the losers. But you close the winners to realize profit and let the losers go thinking they'll bounce. This propagates massive losses.
If you could give someone starting trading tomorrow one piece of advice what would it be?
Don’t. Passively invest, instead. Coma theory: if I had held my AXS/MATIC/AVAX/SOL bags over the last year, I would have 9 figures. Instead, I consistently attempted to overallocate and redistribute.
What criteria do you choose your longer term investment strategy on? Do you do any sort of fundamental analysis?
Coma theory: I had held my bags over the last year, I would have 9 figures. Instead, I consistently attempted to overallocate and redistribute.
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