Mar 21, 2022
Beegsmokey has been a discretionary retail crypto trader and investor since 2017. He is known for being a dinosaur who still uses the Ichimoku cloud.
What attracted you to trading?
I just kinda fell into it by getting into Bitcoin in 2017 and sticking to it. It’s a competitive field with lots of opportunities, which is what I like.
Are you a naturally competitive person?
I would say that I’m quite competitive but it really depends on the topic at hand. I know some people are highly competitive about everything they do, and I wouldn’t describe myself as one of those types, but definitely very competitive if I’m interested in making something “my thing”.
How long have you been trading?
Properly? Learned during the bear market, as the bull market of 2017 was just coin hopping and getting lucky since everything just kinda went up. It was hard, but the cruelty of a harsh bear market can be a great teacher.
What’s the most important thing the bear market taught you?
Definitely, that boredom is a bitch and opportunities cannot simply be forced for the most part. Trading out of boredom can teach quite expensive lessons.
How long did it take you to get profitable?
Looking back I think I only did by 2019 consistently, to the point where I could gauge when I should be in the market, and when I should stay out. This is also probably my biggest edge. Taking breaks and staying out when I’m not in the zone.
What are some things that you look for to determine whether or not you should be in the market?
It’s pretty much down to gut feeling and also comes back to my point about boredom. If I look at a chart through multiple timeframes and feel like I have to really search for a play instead of something catching my eye quickly, then I just don’t bother.
“BOREDOM IS A BITCH AND OPPORTUNITIES CANNOT SIMPLY BE FORCED”
Do you have a daily routine?
Since I went back to Uni it’s a lot harder to have a regular schedule to trade full time, so I’m taking it slower than before. Not a daily routine but when I’m not in the zone I just try to stay out completely, not forcing trades.
Do you select which markets to play or are you more binary risk-on/off to trading as a whole?
I’m more binary risk-on/off, and not only because of market conditions, but also due to personal reasons. If I have something important on my mind that isn’t related to trading or if I’m simply stressed out, then I don’t trade at all, or at least try to keep myself from trading. There’s no point in betting the house if you’re mentally checked out of the market because of other factors straight from the get-go, it can only go wrong.
What's the worst thing about trading?
Specifically in regards to Crypto the 24/7 markets. Patience is a trader's best friend but when a market is 24/7 there are times where your patience turns out as a punishment cause you’ll miss opportunities you’ve waited for a while for by being asleep or just not at your station. This can be mentally exhausting.
Sounds like you are speaking from experience…
The COVID crash during the night of March 12th 2020. I thought I was protected enough against the downside and went out with friends. I was wrong. Going out during such times and having exposure is a bad idea. I should’ve just stayed home so I could’ve cut losses quickly and not have a delayed response, hoping for a bounce of some sort. It would have given me a clear mind instead of trying to concentrate on important financial decisions whilst hungover.
What's the most important quality in a trader?
Patience and discipline. They go hand in hand and you can’t have one without the other.
First, you need the patience to enter/exit setups that are relevant to you, but on the other hand, if you’re not disciplined enough to actually take the setup (or cut it for that matter) once it’s given to you you’re just wasting opportunities left and right.
Of course, there’s always another trade, but if you’re serious about trading and mentally ready to get going you need to pull the trigger eventually. No one does it for you, it’s you and only you.
“YOU NEED TO PULL THE TRIGGER EVENTUALLY. NO ONE DOES IT FOR YOU, IT’S YOU AND ONLY YOU.”
Do those virtues come naturally to you or have you had to work on them over time?
No, definitely not. I have ADHD and patience and focus are two things that I’ve basically struggled with my whole life. and it’s not a battle that’s won once and for all. It’s a constant ongoing process. Journaling definitely helped, interestingly enough, pen and paper helped much more than a digital journal. I think the process of writing something out by hand and actually putting in data yourself is somehow better suited for me than having an automated process on the computer that just spits out data for you which you’ll go over later.
Why do you think you have success trading?
By being in this specific market (Crypto) for quite a while I believe my gut feeling is my best friend, even though I have a few rules I try my best to stick to.
How do you determine which parts are discretionary and what is rules-based?
Strict rules that’ll never change are directly related to myself, not the market. If I’m not feeling well, whether that’d be physically or mentally I don’t trade at all.
Rules that are dependent on PA have to be assessed more often, but I don’t have a strict timer whenever I have to change rules. It's more dependent on performance and market conditions and having to adapt when trading isn’t working out even if you’re consistent with your rule book.
It’s pretty obvious that market behaviour has changed if you stick to what you’re doing and performance is taking a hit, so you go over your notes and find what’s punishing out, and then try to adapt.
What's something you've learned in the last 6 months that has made you a better trader?
Trusting your gut instinct is underrated as long as you keep managing your risk well. Recently, I’ve been very liberal with profit-taking especially when ETH was nearing 5k and afterwards when FOAN and SOLUNAVAX made moves, even though there was a whole lot of euphoria on the timeline.
Not getting myself distracted and trusting my gut at that time means that now I can comfortably sit back until overall market conditions change and favour bulls again. Generally speaking, I’m much more comfortable on the long side of the market.
What's the mistake you find hardest to avoid when trading?
Every now and then I still rush into positions impulsively instead of staying calm and collected.
If you could give someone starting trading tomorrow one piece of advice what would it be?
There’s no rush. Chances that you’ll make it levering up x100 trying to snipe a perfect bottom or top are slim to none.
How do you manage the pace at which you trade? Do you have weekly R targets?
I do not. I did a while back, but honestly, it just didn’t work out for me, and I doubt that it does for a lot of people. If you set yourself a target and are off to a bad start you’re basically forcing yourself into revenge trades to try and get out of that slump on a timer, which is never a good idea.
“IF YOU SET YOURSELF A TARGET AND ARE OFF TO A BAD START YOU’RE FORCING YOURSELF INTO REVENGE TRADES”
What drives you to keep trading?
Very simple answer, freedom. Yes, I said before the 24/7 nature of crypto can be very punishing, but on the other side, it’s very freeing to know you can enter/exit trades whenever you want. If you don’t want exposure, just don’t have any. Take some time off, sit back and relax. You’re in the zone? Crush it, 24/7. It’s pretty amazing.
What does making it look like for you?
Not ever having to worry about personal financial security and being able to spoil and take care of my family. I’m pretty young still so this definition might change over the years but for now, that’s just how I see it, simple enough.
Fill in the blanks
Most traders would be better off staying away from leverage
What separates the pros from the rest is being ice-cold emotionally
A good trader should never get complacent
The biggest misconception about trading is that it’s as easy as social media portrays it