Expert opinion

Interview with Kralow Ventures founder Thomas Kralow: Finding success in crypto trading

In the dynamic world of cryptocurrency trading, few names resonate as powerfully as Thomas Kralow. As the founder of Kralow Ventures, Kralow's expertise in financial markets has made him a sought-after voice in the crypto community. His unique insights into market movements and his knack for identifying undervalued cryptocurrencies have propelled him to the forefront of the industry. 

As we find ourselves on the brink of a potential global recession, understanding how to navigate the volatile crypto market is more crucial than ever. In this exclusive interview, we delve into Kralow's journey, his strategies for success in crypto trading, and his perspective on surviving and thriving during an economic downturn.

Spokesperson: Thomas Kralow, a crypto hedge fund manager and founder of Kralow Capital and Kralow Ventures

1. What does a typical day for a successful trader like you involve?

Around 80% of the work isn't directly related to trading itself. It usually starts with analyzing various market sentiment reports and narratives, followed by delving into fundamentals and news. Only after that comes the search for potential entry points and risk management.

Once trading is underway, I dedicate a lot of time to tasks like bookkeeping and analyzing performance statistics. This is followed by adjusting the trading strategy based on findings from industry developments throughout the day, week, and month.

Contrary to what many might think, trading isn't just about turning on the computer and making trades. It involves a meticulous and perhaps less exciting process essential for success.

2. Could you elaborate on your crypto trading strategy that has contributed to your success, and how do you plan to apply similar strategies while trading Bitcoin during your journey from New York to Alaska?

Initially, my first taste of success didn't come from crypto trading. It was through indices trading, like the S&P 500 and NASDAQ. I've been involved in trading for around nine years now, even before the rise of cryptocurrency trading.

In fact, it's more important to focus on systematic trading. Many people dive into learning various strategies, whether they're based on technicals, fundamentals, breakout concepts, or a combination of factors like my approach. However, the real key is testing your strategy rigorously. Conduct at least three practice stages in the learning phase with demo money. Depending on your trading time frame, aim for around 100 to 200 trades per practice stage for active trading or even more for hyperactive trading.

By the time you're ready to invest real money, you should have completed over 1,000 trades. This process proves you can consistently trade well, understand risk and money management, and grasp market sentiment, major trends, and other fundamental concepts.

These concepts are simple; the challenge lies in applying them effectively in real-life market scenarios. This, I believe, is what has contributed to my success. I understand the process of easing into the market, gradually adjusting and adapting instead of diving in recklessly, trying to amass quick profits. That's a recipe for disaster, in my opinion.

During my journey to Alaska, I'll be using the same strategies I used when I first started trading. These strategies involve hyperactive trading, which is necessary because I'm currently short on time. While I've transitioned to long-term investing and lower-risk strategies recently, whether it's stocks or crypto, right now, my focus is solely on cryptocurrency. Particularly in the past year, I've been reverting to the core of my personal trading approach – engaging in high-risk, hyperactive trading.

The reason for this shift is straightforward. With a relatively small account balance, such as $2,500, you can't simply invest in Bitcoin and wait for it to grow over time. Immediate gains are needed for daily expenses like hotel, food, gas, car maintenance, and more. This urgency prompts the need for trading with a focus on quicker returns. This situation calls for a high-risk strategy. That's the approach I'll be employing throughout the expedition, even though it increases the chances of us losing everything. It's not the ideal risk management strategy, but a necessary step. Interestingly, my previous experience with this strategy has yielded positive results, giving me hope for its success this time.

3. What prompted your decision to embark on this expedition from New York to Alaska, and how do you envision managing the financial aspect, especially with the additional goal of trading Bitcoin on the road?

I've taken on an extraordinary journey of trading Bitcoin from New York to Alaska for two main reasons. Firstly, I'm passionate about raising awareness for Bitcoin and cryptocurrencies in general. I firmly believe they represent the future of the financial system, as our current system appears to be on its last legs. Blockchain technology is a key part of this shift. I'm particularly focused on Bitcoin because we're on the brink of the next bull market, possibly institutionally driven. 

Notably, BlackRock's preparation for a spot Bitcoin ETF application indicates significant interest. This suggests the next cycle could be remarkably intense. I'm keen to raise awareness now because many regular people aren't paying attention, and waiting until bitcoin exceeds $100,000 might be too late. I aim to merge the excitement of travel blogs, expeditions, and adventure with crypto. This blend could encourage more people to realize it's time to pay attention, as Bitcoin might be unstoppable once BTC surges. This cycle could offer a unique chance for generational wealth creation.

Secondly, I aim to demonstrate that it's possible to trade for a living while traveling and enjoy the freedom you deserve. I want to prove that you can lead the life you dream of while trading. These two objectives are the driving forces behind my decision to undertake this journey.

4. Considering the budget constraints and potential market volatility, what risk management techniques from your crypto trading background do you plan to implement while trading Bitcoin on the road?

To be honest, our risk management approach is quite light. I'm relying heavily on my market analysis skills. This involves using tools like heat maps, volume indicators, layer-2 market data, order books, and active limit orders. We aim to calculate probabilities for initial impulses, focusing on short squeezes, long squeezes, and quick moves within small time frames. Our primary goal is to catch these initial impulses.

Given our limited funds, our risk management isn't the most robust. We've calculated daily expenses to be around $300, considering there are two of us and possible car repairs. With an initial trading deposit of only $2,500, our expenses eat up a 15% of it each day. 

This challenge is exceptionally tough – this strategy wouldn't hold up in a professional hedge fund setting. But this journey is about pushing limits, embracing adventure, and accepting risks. It's not the most conventional or recommended trading method, but it's the essence of this challenge. I often say in the vlogs that this isn't something to try at home. It's all part of the excitement and adventure.

5. What contingency plans have you formulated to address any unexpected financial challenges that may arise during your journey, and how do these plans account for your trading activities?

Our worst-case scenario is losing our initial deposit – that's the bottom line. If that occurs, it marks the end of our journey and the last vlog. We'll accept the outcome and admit defeat. I'm clear that I don't want to have any backup plans. I won't add more funds to my deposit or borrow from my co-driver. If we lose our deposit, which is possible, then that's it. Things have been going well for now, and we've managed to stay on track. But if the deposit is lost, our expedition will come to an end. That pretty much sums it up.

6. Which crypto exchange do you prefer, what features do you like, and what improvements would you like to see?

I tried different exchanges myself. Usually, I use Bybit, BitGet, and sometimes Binance. Lately, I prefer Bybit due to concerns about FUD on Binance. But honestly, every exchange has room for improvement. No exchange is perfect when it comes to charting and slippage (when prices change quickly).

One thing I'd like to see improved is the charting software. It would be great if I didn't have to use external tools like TradingView, Trading Lite, or Sei Vision. Also, I'd like to have it all in one window when it comes to getting different market data. This way, professional traders can access all their tools easily.

7. Aside from Bitcoin, which other crypto do you hold?

In my crypto portfolio, I hold around 30 different cryptocurrencies, with Bitcoin being the largest chunk, valued in the millions. It's the cornerstone I have immense faith in. Ethereum is another substantial part, with its ultrasound money concept complementing Bitcoin's store of value narrative. Beyond that, I dabble in high-risk options like Cardano, PolkaDot, Polygon, Stellar, Chainlink, Dogecoin, and many other top altcoins. Additionally, I'm involved in nearly ten early-stage projects that we're confident about for the upcoming bull market. This extends to our investments in crypto venture capital.

8. The big short investor, Michael Blurry, who predicted the 2008 market crash, recently 'shorted' Wall Street, predicting stocks will fall again. What is your view on his prediction and recession as a whole?

Regarding his view on a possible recession, I believe a recession is still looming, according to CPI and PCE readings. Inflation's decline is slowing down due to housing and energy factors, making it stickier. If this trend continues and the Fed keeps interest rates high to counter inflation, it might strain the financial system. While the Fed downplays the risk, chances of a recession remain. If it happens, I wouldn't be surprised if Bitcoin truly decouples from traditional assets like the S&P 500 and rallies alongside silver and gold.

Regarding Michael Burry, it's important to note that he's a legendary figure, but he's been wrong in the past, too. His recent short positions aren't on the entire market; he's primarily targeting tech stocks. His nominal puts on the S&P 500 and NASDAQ are around 1.6 billion, but the real value is lower. Moreover, his overall portfolio includes long positions in various sectors, including oil companies and prisons. He isn't shorting everything with his full capital. So, his stance isn't as extreme as it might seem.

9. Are there any particular trading strategies you can advise investors to leverage during bear markets?

When it comes to trading, it's important to focus on both shortening and swing trading strategies rather than relying solely on long-term investments and price bounces. This shift requires adapting day trading techniques to a swing trading approach. Key elements include considering volume, momentum, and level 2 data.

To maximize your chances of success, I recommend combining various strategies. Incorporate fundamental, technical, and microanalysis while maintaining solid statistical practices and algorithm-based trading for your personal strategy. Technical analysis is crucial, especially during bullish markets, but in bearish times, it's insufficient. To optimize your approach, merge strategies that address various aspects and counter each other's limitations. This includes utilizing techniques like level 2 market data, technical analysis, and fundamental analysis, among others, as mentioned earlier.

10. What advice do you have for aspiring crypto traders?

There are plenty of them:

  • Start by learning effective trading strategies that suit your style. All these approaches can be learned at ThomasKralow.com, a certified trading program where everyone can master their trading and investing skills.

  • Move on to rigorous practice stages, using proper training, statistics, algorithms, and personal analysis. Make sure to adjust your strategy based on your findings.

  • Build confidence by proving your skills over a significant number of trades. Professional traders should have at least 1,000 trades. For investors, around 50 trades might be sufficient, considering your trading horizon. 

  • Systematic adaptation: Become a flexible and skilled trader who understands both the market and your own strengths and weaknesses. Systematically adapt your strategy as the market changes.

  • Tackle trading psychology: Remember that trading psychology is a major part of your success. Understanding and managing your psychological state is essential. 

  • Holistic learning: Don't focus solely on the technical aspects of trading. Understand the market, your strategy, your own psychology, and how to keep proper records.

  • Avoid rushing: Take your time. Don't rush into real-money trading without mastering all the necessary aspects. Impatience can lead to losses.

  • Only after you've mastered strategies, practiced extensively, and proven your skills should you venture into trading with real money.

  • Self-control is key: Maintain self-control throughout the process. Many traders lose money due to impulsive decisions.