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@Tradermagus is a full-time trader and runs half of 'The Paragon' trading education platform. Magus streams weekly on twitch and shares content on youtube.
"There are three ways to make a living in this business. Be first, be smarter or cheat. And I don't cheat" -John Tuld
What attracted you to trading?
Originally it was independence. As time went on, it became about the challenge of competing against others. In trading, the opposition is usually going to be smarter, faster and often willing to cheat via an unfair advantage over others, most likely an edge in information. I enjoy strategizing against others and finding the best way to play a game.
How long have you been trading?
Over six years, two years full time now. Early on, I traded equities and commodities. I found crypto in 2016 but only invested and didn't start trading it seriously until 2018. In 2019, I traded crypto and commodities, but after 2020, crypto took over as the only asset class traded. The lack of efficiency and high volatility makes crypto the best market to take other people's lunch money.
You're known for Market Profile & Orderflow trading. What made you choose these tools?
Taking things apart and putting them back together was my hobby growing up. I always wanted to understand the How and Why behind things, which translated to the markets.
I found these answers in Auction Market Theory" AMT" (Profile) and Market Microstructure(Orderflow). In short, AMT explains fair value and the cyclical nature of ranges and trends. Market Microstructure explains how price moves related to liquidity and market aggressors. Studying these concepts allowed my trading framework to improve massively.
Taking things apart and putting them back together was my hobby growing up. I always wanted to understand the How and Why behind things, which translated to the markets.
How long did it take you to become profitable?
About two years to be consistent on a lower time frame. System design and reworking was a core focus on the path to profitability. A trading framework and systemization have been vital in my experience. However, before this, I got lucky on several swing trades I took before I knew what I was doing. Having some reserves to deploy in the early stages increases the chances of success.
What does an average day look like for you?
Keeping it nonspecific, I aim to wake up early enough to allow myself time to relax and wake up before hitting the screens. Once at the desk, I scan various markets, check positions and plans and make necessary adjustments. Hit the books and scalp if the vol. Is there, if not, chip away at the to-do list.
What's the worst thing about trading?
It used to be the uncertainty, but I got used to that over time. Now I'd have to say neck pain and lack of physical activity. As a full-time trader, you will wither away if you don't make an effort to be fit.
Tell us about your most memorable trade?
In late 2018 the 6k floor on BTC broke. I was at my day job, and very long with no stop or plan. I force closed my position for an 8BTC loss on my phone - which was a lot of money for me at the time. I lost many months of work in a single trade. That was when I decided I would no longer have my milkshake drunk by others.
In late 2018 the 6k floor on BTC broke. I was at my day job, and very long with no stop or plan.
What's the best trading advice you could give?
Probably that a combination of mechanical framework + discretion leads to the highest expected value for directional trading.
Mechanical execution comes from a statistical edge, while discretion comes from experience via screen time and clicks.
With enough experience, discretion will help tame some of the variance from the mechanical side of things.
What does making it look like for you?
Not having to concern myself with how things will get paid for anymore. Capital built up but, more importantly, a steady income.
Was there anyone you considered a mentor that helped you learn to trade?
I consider myself largely self-taught but I have to give credit to a few legends
What's the most important quality in a trader?
Drive and discipline. There are many smart people out there, that doesn't make you special. Being smart and outworking others while maintaining discipline will.
There are many smart people out there, that doesn't make you special.
Why do you think you have success trading?
Lots of luck early on. Looking back, there's far too much variance to attribute much to skill on swing trades. Over time, I put in the work to build a framework for deciding how to trade the current environment. This logic is constantly improving over time as I learn more.
"Trading is like a videogame, similar to when the devs make a change in a game and players must adjust, so must the trader. Markets are ever-evolving and in crypto, this is happening quite quickly. Traders must work to keep pace or be left behind."
What's something you've learned in the last six months that has made you a better trader?
I'd rather be stupid and rich than smart and poor. It seems a lot of the "smart" guys didn't make shit this cycle as they were concerned with being smart.
What's the mistake you find hardest to avoid when trading?
Multi-tasking. Often I will divide my attention too sparsely and execute poorly as a result. Mixing life responsibilities with trading is a recipe for disaster.
If you could give someone starting trading tomorrow some advice what would it be?
Be curious and seek out a niche in the market. Formulate a framework or system to operate from and improve over time as you gain experience and gather data.
Aim to have multiple income streams and a fair amount of capital set aside. Trade small to survive and be prepared to get rag-dolled by the market for a while.
"Trading is an infinite game; there are no rules or known players. There are no winners, only losers. You lose when you run out of resources or the will to continue."
"Trading is an infinite game; there are no rules or known players. There are no winners, only losers. You lose when you run out of resources or the will to continue."
Looking back, was there anything, in particular, you realised held you back as a novice trader?
As I scaled, I always struggled to increase risk relative to what I could support. Subsequently, I scaled much slower than some of my peers. Conversely, I have stayed in the game a while now. In the infinite game, survival is the goal.
In the infinite game, survival is the goal.
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