WELTRADE Client Interview: Successful Trader’s Story
There are a lot of information about profitable mechanisms of the Forex market trading in the Internet, however, the stories and interviews of real successful traders are the most valuable. Studying their experience and knowledge, newcomers comprehend the complex, but fascinating, science of trading, which certainly brings profit to thoughtful and consistent students.
We offer to get acquainted with the successful Forex player from Belarus. Vladimir’s trading strategy is based on the active use of effective mechanisms of fundamental and technical analysis, and also he takes into account the psychology of the market.
The current state of the account of this top trader is as follows: in 13 weeks he managed to achieve a 1425% profit! Vladimir manages the funds of his investors, each month achieving about 150% by analyzing news on the state of interest rates and monitoring the market feedback to the results of FOMC meetings.
Vladimir, please tell our readers what did attract you in Forex market?
In fact, my meeting with the Forex market (the truth about the Forex market) was accidental. I decided to start trading out of curiosity, because I heard a lot from friends, on TV, in advertising that actively called to test my strength and luck. Then, four years ago, I conducted business (and now I continue, in fact), so it was a simple wish to try to make money quickly.
Since, I repeat, I had no experience, as well as knowledge, only a wish to try, whether I could really earn something, I deposited only a few thousand dollars for my first deposit. Simply, for good luck – and indeed deposit immediately increased. For a few months. Unfortunately, the excitement and lack of knowledge result in the fact that I quickly lost all my earnings. Then I decided to study the topic thoroughly: I began to look for relevant information, read, study reviews of experienced people, well, that is, I decided to study the issue from the inside to understand what the secret is. The first thing I understood is that you should not hurry: patience is the best assistant.
And I set out to comprehend the nuances of trading because it seemed to me that I would manage with it. So, I started to learn the psychology of the market. And then after 1 and a half year I could bounce back my losses 6 which I suffered at my start of Forex trading.
Do you go deep in trading study by yourself? Where do you search for information?
Here, fortune turned to me initially, since I managed to get acquainted with one person who is not just on the subject, but a real hedge fund manager, in London.
He told me a lot, recommended how and where to move further, determined the major points of trading and gave important tips that I use and for which I am very grateful to him.
First of all, I remembered the basic rule of Forex trading: not to open a position until I realized what caused the currency movement at a particular moment. Until you figure out the reason, do not enter the market!
And I understand an important thing (which is used in my practice and on which ground create my strategy): quotes movement is created neither by advisers nor by indicators but it is conditioned by economic and political events.
Yes, understanding causal relationships is a fundamental factor in successful trading, and fundamental analysis is a priority. It is still much more important than technical one, what do you think?
I think so, because the price depends on the events. It does not matter how the candle closes. Of course, it is also impossible to do without technical analysis, but it is unstable, and therefore it can fail. Here you earn two months in a row, and then, not catching the current trend, you can easily lose everything.
Could you please tell about your brilliant victories based on using of fundamental analysis?
I made it a routine to listen to and hear, so I am attentive to the statements of the heads of the Central Bank. Suppose after the information about the increase in interest rates, at the moment when it is already bounced back, the market begins to move in the opposite direction – at that exact moment I open the position. Well, yes, I fall into a drawdown, of course, (sometimes by 10%, sometimes by 20%), only after it the position moves to the direction I need.
The FOMC meeting also always makes its own adjustments, so fundamental analysis is a very good adviser.
For example, I earned on the fall of gold, this is due to politics (the trade conflict between the United States and China).
Also, the United States are awaited of November congressional elections, which for sure will affect the state of the dollar.
Do you think that the fall in the US stock market is inevitable during this period?
In any case, there will be information about the possibility of a real victory of the Democrats, which threatens with impeachment to Trump. Market will surely run a fever at this moment, so I’m waiting for the dollar to fall and count on a significant increase in gold.
Could you please tell how many percent brought you the last successful transaction?
Well, for example, yesterday: there was information on inflation levels in the USA (I manage about 900 thousand USD) – I open a position, and in an hour my subscribers have + 10%. And this is taking into account 1% of the drawdown. That is, in 60 minutes they earned about 10 thousand!
It would be interesting to hear your opinion on MQL5: you are now in the TOP there; you manage almost 100 thousand dollars. How promising is this trade direction? What are your plans?
The main feature of the MQL5 service (https://www.mql5.com), well, like ZuluTrade (https://www.zulutrade.com), is that even starting from the minimum deposit, you can earn up to 100 thousand dollars a year.
I have two accounts in MQL5. One, with an average landing of up to 20% and a profit of about 1,400% over 90 days, is quite aggressive. The second (with a drawdown on it – up to 5%, profitability – from 15%), created 1.5 years ago, is focused on quiet trade.
Your results are impressive. How did you manage to cope with stress, because not everyone can take a hit?
Not everyone, indeed. Therefore, I insist that the psychology of the player of the Forex market is on the same level with fundamental and technical analyzes.
At this stage, in order to earn much, it is enough for me to devote to trade for 2-3 hours a day. I open positions, usually two or three times a week.
A series of losing transactions happen to everyone from time to time. What is your strategy in this situation? For example, when market volatility is changing and stops is on. Do a few failed entries in a row make you stop working?
If the market moves the opposite direction, and I don’t know why it happened, I immediately fix the losses. But in principle, if I understand that this is a manipulation and just a jerk in the wrong direction, for a day or two, I am sitting in a drawdown.
On my chart it is clearly seen that I already closed unprofitable positions. Yes, and it happened, I did not understand why there is a change of trend, so not to be under risk, I simply closed positions and did not open others until I figured out what was happening in the market.
After clarifying the circumstances, what caused the decrease or increase, I find a new trend and eliminate all the losses and move out in profit. The most important thing is simply not to be in a hurry. First you should figure out, find the cause of these movements and then resume trading.
Due to your strategy features, your account has a fairly good ratio: profit of 1425% with a maximum drawdown of 38.6%. The high risk of this strategy is obvious that investors should understand as well. The volume of their funds in the account is the whole stop loss. However, a successful trading outcome can yield impressive dividends, right?
Yes, you can always lose, basically If I lose so I lose a little 20-30% and I win back very quickly, as I have monthly income that 4-5 times more than the average drawdown on which I close positions.
But those traders who trade with a profit of 15%, a drawdown of 30% and have a profit of 2-3 times less than the maximum drawdown are under risk in a much more greater degree; and not always the game is worth the candle. I want to say that if they close a losing trade, then it will have to bounce it back for two or three months, and this is at best.
The recovery factor is quite high, it is true. And what should be the optimal ratio, in your opinion?
These are secrets of Forex trading: in order to achieve profitability and be able to quickly recover, profits and drawdowns should be in a 1:2 ratio. This is at least. And ideally –1:3 or 1:4, which is very rare.
Now WELTRADE is your broker. What did stimulate work with this company?
I am satisfied with the quality of transaction conduction, and the speed of withdrawal of funds (5 minutes!). Weltrade provides stable and uninterrupted operation of the platform: during a year and a half, there have never been any complaints. I have something to compare with, as I had to work with a sufficient number of other brokerage companies. I am confident about this broker.
Newcomers always appreciate the advice of successful traders. What will you recommend to them?
I would advise you to pay particular attention to the psychology of the market and to be patient. And still you have to learn a lot, try to comprehend the essence of the processes, study the causal relationships of currency movement, make friends with analytics, and not waste time on trading robots and indicators. It is better to use this time to study acute economic data, taking into account its influence on the state of the market in order to earn really good money thanks to this knowledge. I think that I have told a lot of important and useful things.
Vladimir thank you for you detailed telling.
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