In this edition of The Trader’s Perspective we interviewed Oscar Status. He is a full time trader and YouTuber. You can also follow him on Instagram. He shares his trading advice for newbies in this exclusive interview.
The truth is that I was quite reluctant to start operating in the crypto market because I was already doing very well trading futures, forex, commodities, etc. But in the end I was encouraged to open my first operation in Bitcoin in September / October 2017 approximately.
Well, the story is quite curious. At the end of 2017 I was still trading cryptocurrencies with the best benefits I have ever had per operation at the benefit / risk ratio level in my career as a trader. It was a time when anyone could earn by investing in cryptocurrencies. You only needed to operate price congestion to see how the price catapulted you to new highs in a new bullish movement.
Facebook started recommending me groups on cryptocurrency trading and I entered one to take a look. What I found was quite worrisome: an impressive number of people who did not even know how to write the word “trading” in the right way were trying to earn money “because their neighbor knew someone who had won”. They were being advised by many other people who called themselves “professional traders” for winning a couple of isolated trades in a market where it was almost impossible to lose money at that time. I started answering some comments and soon I began to receive private messages from people wanting to learn more about trading. I guess people quickly realized that I knew what I was talking about. Although there were also people who felt a little bad that my comments were so successful, haha!
This was how I immediately decided to create my own Facebook group and quickly, in a matter of days, it reached the first 1,000 people subscribed. I was very clear that I was there to try to help people, not to waste time in groups where everyone felt smarter than others. A few months later, with about 2,500 people in my Facebook group and after announcing and “saving” many people from the January 2018 crypto-crash, I posted my first video on YouTube.
I consider myself simply “a trader”. My income comes from the price movement, I’m aware of that and I will always operate moving markets, over time they could be different or they could remain the same. I spend 2-3 hours a day doing scalping or day trading in German Dax futures, 1 hour a day or a bit less doing swing trading in Forex, indexes, raw materials and cryptocurrencies, and I invest the money I earn with my trading in the long term.
By the time I started with crypto it was not possible to trade cryptocurrency futures, it was all about cash, haha! But in general the market has become much more complicated and less noble than it was at that time, including exchanges and platforms that survive today by jumping their customers’ stops instead of concentrating on giving a great service.
My maximum profit was 184% in a single operation in RIPPLE. It lasted from December 21st to December 30th, where I sold all the cryptocurrencies I had due to the news covered in all the newspapers that cryptocurrencies were the new technology that was going to change our lives (enough signal to sell everything you have). In fact, if my students review those days they will see that a black hawk scenario is fulfilled, which is one of the strategies we usually operate.
As for painful lessons, I really haven’t had any in cryptocurrencies. This is because I landed to the crypto market with years of profitability in other markets and nothing caught me by surprise at that time. Those painful lessons we all have to learn came for me a few years before 🙂
Your own path will be clearly guided by the natural learning process. The first thing is learn the technique. Then train how to handle all the emotions that come to you above when applying that technique in real time. The opposite would be unfeasible. It would be like trying to learn how to be calm by throwing a penalty in the World Cup final without even knowing how to throw a penalty or even how to shoot the ball, haha!
None, the first thing is to learn to understand the price.
One thing is clear: What makes us earn money? Our benefits depend 100% on the price movements and its direction. An indicator can go up and the price stand still or even move in against and we will lose money. An indicator only draws price information in a different way, it can only be a follower of the price movement but never lead it. Therefore, it can be a good support to visualize something more immediately but it will never tell us how the price will move or give us signals on how to enter the market. Does it make sense then to focus on the indicators if the movement that generates us money is that of the price?
I calculate stops by technical factors and calculate the entry volume in a way that if the stop jumps it will only equal 1% of my capital dedicated to that asset’s trading. When it comes to the crypto I have in the broker I usually have an amount equivalent to 3 stops, that is, 3%.
I share all my Stop Loss and Take Profit techniques 100% free in my trading course: www.oscarstatus.com
The stablecoins are a world by themselves, it depends on the systems they have to maintain that stability. The “usual” cryptocurrencies like Bitcoin, Ethereum, etc. are marked to have a high volatility. That gives them limited utility if you need a stable value exchange. That’s when the stablecoins come into action, as they are coins that have a mechanism to maintain their value over time compared to a FIAT currency, for example. The quality of these stablecoins depends on the mechanisms they have to maintain their value. The closest to the Dollar value is the Dollar itself, that’s why it’s my first option. The second one to trade cryptocurrencies would be to use a futures market with a stablecoin.
Patience. I always say that learning to be a trader is like studying a career at university, like Architecture, Engineering or any other.
Here’s the reality: the market is a place where we are competing with entire buildings of employees (Google “JP Morgan building” to see it yourself). They dedicate their efforts to collect information and earn money in the markets. One cannot get there, if they have no idea of what trading is about, and aim to earn money after watching a YouTube video, or reading a blog post as this is an unrealistic goal. This is a process that requires dedication, effort and hours of training. Look for a person that earns money in the market. Especially check that his/her students earn money to certify that the knowledge ends up in their hands. Someone who is with you day by day, solving your doubts and helping you to improve, giving you the necessary advice for each bump in the way.
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