8 Venture Coinist
Jan 31, 2022
Venturecoinist is a crypto trader, podcast host and the creator of @coinistbot, an automated trading system available at @stackedcrypto.
What first attracted you to trading?
I worked at an FX brokerage before it shut down. Speaking to traders all day and becoming familiar with trading software and analysts sparked something that never disappeared. It was like a game with never-ending complexity, and it's kept my mind busy ever since.
I’ve been trading for five years now. After college, I traded FX for the first year and then migrated to crypto. I did enrol in grad school but dropped out to pursue crypto full time.
How long did it take you to become profitable?
I came into crypto in 2017 with basically zero dollars. Fortunately for me, it was impossible not to make money during the bull run of 2017, so practically all of my early investments were winners.
My approach has always been a healthy mix of investing and trading. Since crypto has such ridiculous swings, there are times when you feel like a genius and quarters where nothing can work.
In my opinion, the most important thing isn't finding a profitable trading strategy but rather ensuring that you never run out of capital to invest during those periods where everything is on a discount.
“THE MOST IMPORTANT THING ISN’T FINDING A PROFITABLE TRADING STRATEGY BUT RATHER ENSURING THAT YOU NEVER RUN OUT OF CAPITAL TO INVEST DURING THOSE PERIODS WHERE EVERYTHING IS ON A DISCOUNT.”
Do you have a set daily routine?
I wish. That's something I struggle with the most. I would love to say it's as disciplined as the chad in American Psycho waking up at 4 am for 100 pushups and checking the market, but to be honest, there are times when everything is a blur.
Sometimes have periods of serious routine waking up at 7 am for a month straight and am super productive working/podcast/lifting. Still, there are some months where it feels like I wake up, go to my desk and stay there until I fall asleep. Then I wake up and do it all over again.
The one thing I try to keep consistent is to stay as physically active as possible.
“THERE ARE SOME MONTHS WHERE IT FEELS LIKE I WAKE UP, GO TO MY DESK AND STAY THERE UNTIL I FALL ASLEEP.”
What's the worst thing about trading?
I think it's the time/mental drain. It's non-stop, even if you don't want it to be. If you want to do well here, you have to do more than any sane person would. That's the opposite of how it's portrayed often on social media, but it's the reality.
Sure, you get some freedoms that a regular job wouldn't offer, but if you don't put the time in, you're going to miss the best opportunities or not find them early enough.
What is your most memorable trade?
I'll share my most memorable trade of 2021, which was Axie Infinity. I spoke to Delphi Digital on a podcast and reviewed their research report on the project.
Immediately after the broadcast, I made my investment, called my brother and told him it was my favourite play of the year. For the next 2 to 3 weeks, I was hooked on learning more about it.
I ended up playing the Axie game competitively for 4-5 hours a day to understand how the in-game economy worked. It was such a perfect intersection of things that I love and understand: gaming, crypto, and poker's game theory elements.
It only happens a couple of times a year, but everything fell into place with that one.
What's the best trading advice you've been given?
I say "move slow" a lot, and honestly, it's probably more to remind myself to do so. It seems to resonate with many people and has become a meme. The idea is that you often have more time than you think to make the optimal decision. Crypto makes you feel like you need to smash buy or sell right when a big move is happening, but in reality, it's probably better to wait and plan the best way to approach that play - whether it's holding onto something longer or waiting for lower prices on your entry.
“YOU OFTEN HAVE MORE TIME THAN YOU THINK TO MAKE THE OPTIMAL DECISION.”
What's the most important quality in a trader?
It is being competitive or curious. There are probably different qualities for everyone depending on how you play the market, but my competitive and curious streaks keep me interested and always wanting to improve.
At the beginning of my journey here in crypto, I honestly think it's just because I was willing to spend far more time on it than 99% of people. That still plays a minor role, but nowadays, some investments dwarf anything I'll do with active trades. Having a long term view will help any short term trades.
What's something you've learned in the last SIX months that has made you a better trader?
Every cycle, I realize that it's okay to be even more patient. After the 2017-2018 cycle, it felt like altcoins would never have their parabolic period again. After 2020, it felt like the Defi boom was history, and we would never get another one. Then NFTs came along. Then gaming/metaverse came along. There's always another cycle.
What's the mistake you find hardest to avoid when trading?
The toughest thing to this day is sizing - sizing is a constant battle of being honest about your conviction and honest about your greed. Understand how each influences your decision making.
Sizing up on the right opportunities is essential, but you can reach a point where you have so much exposure that you can't see the investment through. The larger your size, the harder it is to leave an investment untouched and allow your thesis time to play out.
“SIZING IS A CONSTANT BATTLE OF BEING HONEST ABOUT YOUR CONVICTION AND HONEST ABOUT YOUR GREED.”
If you could give someone starting trading tomorrow one piece of advice what would it be?
Play the long game and make some long-term investments that mentally make trading easier. That allows you to avoid the day to day worries of trading if you have exposure regardless.
FILL IN THE BLANKS
Most traders would be better off moving slower.
A good trader should never go broke.
The biggest misconception about trading is being a good analyst means you're a good trader.