One time, Scott Melker had Diddy dancing on a piano that he was playing. Then there was the time he sang karaoke with Justin Timberlake in Tokyo. And that other time he got on stage with Sublime and sang “What I Got.” For Melker, life on the road as a professional DJ was never dull.
But, when his first child was born, he decided it was time to retire from the turntable and start a career closer to home. He dug into his lifelong hobby of trading and made it his full-time job.
Despite his ultra-chill and humble demeanor, the spotlight seems to follow Melker in whatever he does. In his new career as a trader, he has quickly risen to fame on social media as the “Wolf of All Streets.”
Today, Melker has traded his groupies for Twitter fans, 55k thousand of them, who follow him for crypto and equities investing advice, strategy, and analysis.
We sat down with the Wolf himself to learn more about his investing strategy and how he mitigates risk in the crypto market (and a few more wild stories from his DJing days).
Voyager: Tell us about when you first invested in crypto – what made you decide to take the leap?
Scott Melker: I had friends that were buying Bitcoin in the early 2010s, so it was on my radar for quite a long time. I should have listened to them. I started buying in late 2016 because my music production partner was into it and convinced me that there was quite a bit of money to be made. I was hooked somewhat immediately and moved more heavily from investing to trading early in 2017. Fortuitous timing.
V: For those that don’t know your background, you were a professional DJ, performing with Steve Aoki, Snoop Dogg, Kanye West, and other megastars before you starting trading professionally. Can you tell us about that?
SM: It’s hard to describe what it was like – I was living my dream every day, which is something that I am very grateful for. I’m aware that most people will never have an opportunity like that. I definitely felt like I had to pinch myself on a few occasions throughout my career.
V: How did you transition into professional trading and investing?
SM: I always invested, so it was more of a transition from part-time to full-time. When we had our first child (who was a happy surprise), I did not want to be on the road. Also, I was already approaching 40 and felt too old for DJing. I would find myself at parties playing for people literally half my age. It was time to hang it up.
V: You’re currently a trader at TexasWest Capital, tell us about your role there
SM: Chris Inks, the founder of TexasWest, is the best trader that I have ever met. I followed him for a long time and pushed him towards starting an educational service. Eventually, I offered to run it for him, knowing that it was an offer he couldn’t refuse. Our goal was to counteract the bad information flooding the crypto market with sound advice, proper risk management, and better technical analysis. I effectively manage the business, giving Chris the time to teach and interact.
V: How would you describe your crypto trading strategy?
SM: Slow and steady, with a strong emphasis on investing over trading. I do not have the time or mental capacity for scalping and day trading, so I look for longer-term setups and entries. My goal is not only to make more money but to have more time to do other things that I enjoy.
V: How do you look at your investment in crypto vs. other investments in your portfolio?
SM: I view my crypto investments as high risk, high reward. Crypto is a small allocation of my overall portfolio, as I have a family to support, and I have no intention of losing my money when it can benefit and enrich their lives. The majority of my money is still in legacy markets and real estate.
V: You’re really passionate about risk management. How do you manage your risk in crypto?
SM: I could write a book about managing risk. At the core, I think that most people are overexposed to this market. As I mentioned, I keep my overall exposure to crypto low and only actively trade with 15% of my total crypto portfolio. Relative to my overall portfolio, I trade with very little. There are so many impediments to trading with proper risk management in this market – 24/7/365 markets, shady exchanges, inaccurate information everywhere. When it comes to day trading in crypto, the odds are stacked against you.
V: In your opinion, what is Bitcoin best suited for – payments, trading or investing?
SM: It’s all relative. It’s not the best asset for payments, but it’s better than most. I think other coins are better for payments. It’s incredible for trading because it has endless volatility. As for investing? That’s a huge gamble, but one that I am willing to take with a percentage of my money. I have high hopes long term for Bitcoin’s price.
V: If you had to venture a wild guess, what do you think Bitcoin will be worth in five years?
SM: I hate answering this question because it’s like asking a fortune-teller what will happen in the future. I can say that I believe the price will be higher than it is now, and would not be surprised to see it in the 40-50K area. Above that is pure conjecture, but possible. I do not believe that Bitcoin is “going to 0.”
V: You’ve become an avid user of Voyager. What about the Voyager app is different or exciting to you?
SM: The app is clean and simple, and the UI is flawless. It’s exceptionally intuitive and easy to use. That being said, the key benefit is commission-free trading, which has become the industry standard in legacy markets. How can anyone argue with no trading fees!?
V: You just launched a newsletter, The Wolf Den. What kind of content can we expect and what’s your goal?
SM: My goal is to expand upon the thoughts that I discuss on my Twitter account and to share my ideas about the market, technical analysis, education, trader psychology, and emotional control. This newsletter is intended to have something for everyone, from the technical analysis junkies who strictly trade charts to the casual investors who are superficially interested in the space. My hope is to help my subscribers avoid the common mistakes responsible for the failures of most traders and investors, most of which I have made myself. These mistakes are largely a result of emotional decision making and poor risk management.
V: Let’s close on a good story. What’s the wildest gig you’ve ever played?
SM: There are so many, most of which I could never share in an interview! Here’s a quick list of a few wild things that have happened - I’ve had Diddy dancing on top of a piano while I played it over one of the tracks I was working on for him, I’ve had my records melt to the turntables in Phoenix in the summer, I’ve ended up on stage singing “What I Got” with Sublime, I sang karaoke in Tokyo with Justin Timberlake, I’ve had all of my equipment fail mid-set opening for the Black Eyed Peas, I’ve been rushed into the locker room of a soccer stadium because people were rioting to get into the show I played with Enrique Iglesias… the police were teargassing people who were climbing the walls. That’s just a few of many!
For more from Scott Melker, follow him on Twitter @ScottMelker and Instagram @ScottMelker, and make sure to subscribe to his newsletter, The Wolf Den, for exclusive content.