Pseudonymous crypto trader Erebos shared the trading strategies and mental approach that allowed him to turn $15,000 into over $14 million over several years.
What Happened: Erebos recently made headlines for turning an initial investment of $700,000 into $4 million in just four months trading the Ondo Finance ONDO/USD token. He had also documented seven-figure gains with Dogwifhat WIF/USD.
In a recent podcast, the trader described how he managed this feat publicly, providing transparency through his linked wallets on Twitter. “This was not some random fluke; it was a complete strategy system process,” noted the podcast host.
The trader’s success stems from his ability to identify undervalued opportunities early and sell when the broader market became aware of them. He elaborated, "I spent quite some time studying token listings and developing a system for identifying when to enter these new coins."
He looks for inflection points where selling pressure from initial investors like airdrops and early buyers subsides, and buying pressure starts to take over. Rather than relying heavily on valuation metrics or technical analysis tools, the trader uses intuition developed from studying and trading numerous token listings.
The podcast also shed light on Erebos's approach to spotting trends and momentum in the market. He discussed how he utilized data and market conditions to make informed decisions, such as recognizing the importance of trends.
Erebos also pointed out that the most successful traders often struggle to explain their strategies logically because a significant part of their success comes from an intuitive understanding developed through thousands of hours of study and practice. This intuition is difficult to transfer or teach directly, as it involves a complex network of connections and nuances that cannot be fully conveyed through explanations alone.
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Why It Matters: The trader’s strategy underscores the importance of thorough research, timing, and conviction in trading. His journey from turning $15K into over $14 million since 2018 highlights the potential of disciplined crypto investing. "The emotional side and the swings were pretty intense. You have to be comfortable seeing your P&L fluctuate significantly," Erebos noted, pointing out the psychological resilience required for high-stakes trading.
Moreover, Erebos emphasized the significance of sizing and conviction in trades. He said, "My style is high conviction bets with size, meaning I filter a lot of what I trade and invest only in the best setups." For him, this meant often putting up to 25% of his portfolio into a single high-conviction trade, allowing for significant gains when his strategy played out successfully.
"Having conviction and being patient are critical," Erebos advised. This insight is valuable for both new and experienced traders, emphasizing that immense gains often come from strategic patience and not overtrading.
What’s Next: Trading and investment insights are topics to be thoroughly explored at Benzinga’s upcoming Future of Digital Assets event on Nov. 19.
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This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Image created using artificial intelligence with Midjourney.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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