Summary of "Cómo conseguí aprender y ser rentable invirtiendo"
Summary of Finance-Specific Content from Cómo conseguí aprender y ser rentable invirtiendo
Presenter
Esteban Pérez, trader and investor active since before the 1990s, with experience in stocks, cryptocurrencies, and multiple markets.
Markets, Assets, and Instruments Mentioned
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Equities: Spanish stocks (Telefónica, Repsol, Banco Bilbao - BBV/BBVA, Vanesto), U.S. stocks (Dow Jones Industrial Average), European indices (Ibex 35, DAX).
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Indices: Dow Jones, Ibex 35, DAX, London Stock Exchange, New York Stock Exchange.
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Cryptocurrencies: Bitcoin (BTC), Ethereum (ETH), Bitcoin futures (CME futures), Tether (USDT) futures.
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Commodities: Gold, crude oil (Brent crude oil referenced).
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Forex: Eurodollar, pound-dollar.
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Derivatives: Contracts for difference (CFDs), futures.
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Broker Platforms: XTB (recommended broker for stocks, ETFs, cryptocurrencies as CFDs).
Methodology and Framework Shared
1. Historical Data Collection & Analysis
- Initially gathered market data manually from newspapers (salmon-colored financial pages) and teletext.
- Recorded daily open, high, low, and close prices manually in notebooks.
- Constructed linear price charts from these data points before candlesticks were common.
- Used weekly and monthly data primarily due to limited availability of intraday data.
- Transitioned to using spreadsheets for calculations as technology advanced.
2. Price Action and Pivot Levels
- Focus on price action without relying on volume or traditional indicators.
- Identification of key pivot points by observing whether price holds a high or low for a full trading week (5 days).
- Pivots classified by duration:
- Short term: less than 6 months
- Medium term: 6 months to 1.5 years
- Long term: over 1.5 years (some positions held for more than 5 years)
- Gaps (price gaps between close and next open) are important signals.
- Levels that hold over time become “safe havens” or support/resistance zones.
3. Trading vs. Investing
- Distinguishes between trading (short-term, intraday) and investing (medium to long-term).
- Historically, trading was limited due to lack of real-time data and platforms.
- Approach is primarily medium to long-term investing based on price action.
- Trades typically last weeks to months; performance evaluated quarterly and semi-annually.
4. Risk Management
- Avoids leverage; prefers trading with own capital without margin.
- Emphasizes understanding slippage risk due to delays in order execution (historically via bank brokers).
- Uses calculated levels to decide entries and exits, reducing impulsive decisions.
5. Use of Technology and Platforms
- Early reliance on manual note-taking and basic computers (ZX81, Commodore Amiga).
- Transitioned to using platforms like Investing.com for historical OHLC data downloads.
- Developed own pivot indicator (“pivot up and down indicator”) shared in his courses.
- Currently uses XTB broker for commission-free stocks, ETFs, and CFDs on cryptocurrencies.
- Trades Bitcoin and other cryptos as derivatives (CFDs), not holding wallets, reducing custody risk.
6. Application to Cryptocurrencies
- Treats cryptocurrencies (Bitcoin, Ethereum) as financial assets similar to stocks and commodities.
- Applies same price action and pivot level methodology to crypto markets.
- Notes that Bitcoin futures (CME) close on Fridays, so weekly data is relevant.
- Uses neutral currencies (Bitcoin/USD) for calculations rather than stablecoins like Tether to avoid distortions.
- Confirms that historical price action principles remain valid in crypto markets.
7. Performance Metrics and Targets
- Uses profit targets at 25%, 50%, 100%, and 150% gains from pivot-based entries.
- Positions closed incrementally as targets are met.
- Tracks effectiveness of pivot levels historically to validate strategy.
8. General Recommendations and Observations
- Encourages mechanizing trading decisions to avoid emotional bias.
- Stresses the importance of following what “big money” or institutional players do (market consensus).
- Advises against over-reliance on free indicators like RCI; prefers price action and pivot analysis.
- Warns about market noise generated by media and the lag in information dissemination in past decades.
- Recommends diversification across assets but emphasizes mastery of a few key instruments (e.g., Dow Jones, DAX, Bitcoin).
Key Numbers and Timelines
- Dow Jones levels referenced: ~2,400 in early 1990s; ~8,000 in early 2000s.
- Bitcoin price pivot levels example: 28,963 USD (calculated from 2019-2020 data).
- Profit targets: 25%, 50%, 100%, 150% gains from entry points.
- Trading duration: typically weeks to months; evaluates quarterly/semester performance.
- Historical pivot holding period: 5 trading days (1 week) minimum to validate pivot.
Disclosures and Cautions
- Esteban does not use leverage due to personal risk management preferences.
- The trading method is based on personal experience and historical data analysis.
- Course and indicators are shared in his paid training but some tools are not publicly available.
- Not financial advice; users should do their own due diligence.
- Broker recommended (XTB) complies with ESMA regulations and reports to tax authorities.
- Trading cryptocurrencies as CFDs reduces wallet and custody risks but is derivative-based.
Summary
Esteban Pérez shares a multi-decade journey of learning to invest profitably through disciplined price action analysis, focusing on pivot levels derived from open, high, low, close data. He emphasizes medium to long-term investing, avoiding leverage, and applying the same principles across stocks, indices, commodities, and cryptocurrencies. His approach relies on historical data, manual calculations transitioning to spreadsheets and programming, and a deep understanding of market structure. He advocates for mechanized, rule-based trading aligned with institutional behavior, using brokers like XTB for practical execution. The methodology remains relevant today, including for crypto assets like Bitcoin.
Presenter: Esteban Pérez
Category
Finance
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