Interview with a trader
Wednesday 29 July 2015
Ever wondered what it’s like to be a full-time trader? Here are some insights from a forex pro who started checking out the crypto scene.
Mike is a long-term forex trader who discovered crypto a couple of years back. He currently trades forex (fiat) full time, including for LIQUID - a crypto initiative that generates returns for asset holders through market-making bots and manual forex trading. I was curious about what makes a trader tick and how he saw the immediate future for bitcoin from his vantage point over the markets. So I asked him. Oh, and just in case you were in any doubt - none of this constitutes financial advice. Capeesh?
Read also: Solid returns with Liquid tech
Traders inhabit an arcane world of charts and technical signals. Here be great riches, and dragns...
How did you get started in trading?
Back in 2007 I was browsing websites and kept seeing ads about binary trading. What will the price of gold be? Will the Euro fall? At one point it started to piss me off and I said to myself: fuck it, let’s guess what the price of gold will be...
I opened an account with a broker and lost $500. I later realised that binary might as well be classified as gambling because it’s impossible to predict a price movement within a horizon of 60 seconds or 5 minutes. Actually, if you take a look at one site I know, they have binary trading options under their gambling section, right next to roulette and slots. Go figure…
Anyway, I was pissed. I had lost 500 bucks and I was determined to make it back. So I started digging until I found forex. Forex made more sense. I could chose my trading timeframe, I had charts and not just prices, and very basic descriptions of technical analysis. Back then info was very hard to find.
So I started with forex and lost another $500... That was the point when I discovered how greedy I was, so I had to learn discipline. It took me a good few years and a couple of drained accounts, but I fell in love with the industry and I managed to look past my losses. Fortunately, I not only recovered all those years of loss, but I also managed to buy a house, a car, and a few other things, while still managing to provide a modest lifestyle for both me and the kid I take care of.
When did you come to crypto?
Back in 2013. I have to thank my broker for it because they were the ones who sent me an email saying that bitcoin deposits and withdrawals are possible and that got me wondering what the fuck bitcoin was. From then on, it was the same love story as forex (even though I have grown to hate bitcoin from the bottom of my heart...).
What do you see as the main differences between stocks/forex and crypto trading?
Forex gives you leverage. Forex is currencies oriented. Forex can be traded fast, or it can be traded on longer timeframes. Stocks don’t give leverage if you want the real deal, although they can be traded on any timeframe as well. The thing is that Warren Buffet is my idol and I respect one of his very famous quotes: ‘The best holding period for a stock is forever’. I see stocks as investments, and not speculation. The difference is that you never let go of an investment. You either go down with it or live happily ever after together.
Crypto trading is pure chaos. It’s irrational and easily manipulated. I tried it and hate it! There’s a lot of people making heaps of cash on it, but it’s just not my thing. That’s why Liberty [the bot operator who runs LIQUID] and I work so well together. My weakness is his strength, and the other way around.
What’s your outlook for BTC over the next year?
A crash to $100 by the end of 2015, and then a huge jump to over $1400. I have plenty of charts that suggest that to me, but that’s the gist.
What do you think are the key crypto developments to watch out for?
Depends on what area.... Nxt is my true crypto love. It’s great and only needs a few minor tweaks, which are already in progress. So no worries there. Ripple will be the next PayPal. Sia will be the next Dropbox, Mozy, Google Drive, call it what you want. She's here to stay and she'll rock the market.
Do you trade bitcoin or forex? Do you have insights about the crypto market you'd like to share? Let us know!
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