Video Summary - 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

Equities: Spanish stocks (Telefónica, Repsol, Banco Bilbao - BBV/BBVA, Vanesto), U.S. stocks (Dow Jones Industrial Average), European indices (Ibex 35, DAX).
Indices: Dow Jones, Ibex 35, DAX, London Stock Exchange, New York Stock Exchange.
Cryptocurrencies: Bitcoin (BTC), Ethereum (ETH), Bitcoin futures (CME futures), Tether (USDT) futures.
Commodities: Gold, crude oil (Brent crude oil referenced).
Forex: Eurodollar, pound-dollar.
Derivatives: Contracts for difference (CFDs), futures.
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

Cómo conseguí aprender y ser rentable invirtiendo

Key takeaways