On Thursday, the 4th of June, Bingbon hosted popular crypto trader Nebraskan Gooner for an AMA.
Nebraskan Gooner is a popular trader on Twitter and runs his own private trading group for those more involved in trading.
Here is a wrap up of some of the questions asked by the community.
Q: First off how about you give everyone an introduction into how you got started with trading and cryptocurrency?
I heard about Crypto in early 2017. Did months of research and finally decided it was a good investment. Bought a tiny bit of BTC then I bought LTC, ETH, and XRP. Accumulated in the fall of 2017 and thought I was a genius by the time Dec/Jan rolled around 😂
I held all the way up and sold a tiny bit but held a lot on the way back down and finally sold. All in profit, but nowhere near the highs. The crypto market itself made me a little nervous from an investment standpoint in early 2018 so I decided to learn how to read charts before wanting to get back into investing. Then I decided I’d rather learn to trade than to HODL because I expected BTC to be mostly downwards for some time. And that’s what got me into trading
Q: Do you also trade or invest in Stocks, or have you considered doing so?
I‘ll occasionally trade stocks when the crypto market has low volatility. For stocks, I’ll usually just throw a small amount into an asset and hold for a few days/weeks. I don’t focus as much on those as I do crypto and I don’t typically day trade them. For anyone who enjoys trading low market cap altcoins, penny stocks are of a similar breed though. Those can be very interesting to trade but high risk, especially if you don’t know what you’re doing.
My recent stock trade of $SAVE was a 60% profit that I held for a couple of weeks. It had been a month or more since my previous stock trade.
Stocks are very popular right now showing similar volatility as crypto
Q: What is the best way to grow a small account trading on Bingbon (say starting with $250)? (i.e. sticking with low leverage 5x, or scalps, etc?)
I’m not sure there’s a best way. It also depends on how much $250 is to you. If $250 is all you can afford to put into a trading account, then you need to be extra aware of your risk before entering each trade. One big loss could really set you back and make it hard to recover. If $250 is not a large amount to someone, they can try to be a little more aggressive to grow the account faster.
The most important note is to set growth goals for yourself. Start them out conservatively and make them achievable. Once you start achieving some goals, it can really get the ball rolling on achieving more goals and more challenging goals
A lot of people would want to grow their $250 account to $500 in 1 day. But that can be difficult and going for big wins can set you up for big losses. Large quick gains can make you become greedy and even if you start out profitable, you can turn those big quick profits into big quick losses
The best most rewarding strategy long term is slow growth through compounding. If you make $5 a day on your $250 account in 1 month you would have $400 in your account. That’s great account growth for one month regardless of the starting value.
Q: As a Novice in trading, What advice can you give me for securing my assets especially in this market volatility?
Don’t overexpose yourself to the market. I hear many traders say “I had a stop loss and still got liquidated”
During these times as with the very steep BTC drop yesterday, a stop loss will be ineffective.
A veteran trader should be able to sense times when high volatility can come into play.
And know when to go big or not to go big based on situations. A novice trader will struggle to sense these times and should always be aware of their risk if they step away from the computer. Stop losses work 95% of the time but that one time it doesn’t can really hurt you. That’s not an exchange error either it happens on all exchanges in times like that
As a novice trader, you must set a risk management plan for yourself and know that any monetary value you have on an exchange or in a position is at risk, not just the amount you’re risking on any given trade.
Q: Once I found a complete E-book about the RSI indicator and it made me realize how little I knew about it and the same is probably true for other indicators. So my question is: Where do I find free and nice content about indicators and how do I know when I’m ready to use them in the right way?
I did a lot of searching online and in blogs when I was starting out. I also found traders on twitter that used certain indicators and asked them more questions about them.
I’m currently working on a “Beginner’s guide to trading” (It’s taking me longer to complete than I expected) but once that’s released it will be a free resource for new traders to learn about indicators and other basics to help them get started trading.
Q: What is leverage for you and how do you use it?
Leverage is a way to increase my position size without increasing my exposure to the market. As in, I can use $100,000+ position sizes without needing to deposit $100,000 of my own money onto an exchange.
Not only that but if for some reason any of my accounts were to be hacked, I wouldn’t be taking such a large loss.
As far as leverage itself, I prefer isolated margin. Only the position i enter is at risk for liquidation. There are pros and cons to this, especially with high leverage, so I’ve made adjustments to compensate for this with my scalping.
I have friends who use cross margin effectively. With cross margin, your whole account is potentially at risk. I have friends that have very successful strategies with cross margin trading, but it also requires very strict discipline.
Q: Can you give me the best Indicators for scalping the 15M TF, and can you explain how these indicators are important for scalping? Also, for those unfamiliar, maybe you could explain what scalping is?
Again I’m not sure there is a “best” indicator. It depends on the individual’s strategy and style.
I have a free indicator on Tradingview called “Gooner EMA” that’s something I use on every time frame and especially on lower time frames along with the 99sma close. I have a specific strategy built around these three MA’s alone. That is successful in any time frame.
For 15m time frames, I mainly use EMAs with volume and price action. Many hours of studying went into learning PA and volume. Volume is used for confirmation of price action to help you decide whether a candle is fabricated or not
Volume and momentum are the most important tools I use while scalping.
What I mean by scalping is low time frame trading. For scalping, I will generally enter a position and close it with-in 10 seconds — 10 minutes. Rarely longer.
Q: Will BTC make an ATH in the next 12 months? What is your target for this BTC bull market?
If BTC breaks 14k I think we will see a new ATH.
My targets are $36k, $50k region, and $76k region.
Q: I have seen you refer to OBV many times in your analysis but I am unfamiliar with that, could you enlighten me, thank you.
OBV is “On Balance Volume”
Basically it tells you the balance between buyers and sellers. OBV going up means that buyers are out-muscling sellers. And the opposite for down.
The saying is “volume precedes price action”
So sometimes OBV is a good indicator to help with consolidation directions as many times OBV will break up or down prior to price breaking up or down.
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