The beauty of trading is that anybody can do it irrespective of social status, education or age. This is also true for the Challenge, of course. The 21-year-old trader Tomáš from Bratislava, Slovakia who has just become a FTMO Trader with our company just last week. Our youngest trader was welcomed among us as well as interviewed.
- First, tell us briefly about yourself.
My name is Tomáš, I am 21 years old, I come from Bratislava and a year ago I graduated from grammar school at Grössling Street, Bratislava. Apart from trading, my hobbies include educating myself, reading books and helping others. I have been trading for 2 years: one year on demo accounts and one year on real accounts. One of my especially favourite instruments is forex pairs (I trade up to 14 of them) and I use the M30 timeframe.
- What impulse has led you to trading? What made you most interested in it?
I learned about trading through my father who was the first one to show me what trading is about. Trading seemed to be an interesting form of work and, especially, at first glance, the charts and the whole thing did not seem too complicated. On the contrary, it appeared quite easy. Trading is not that difficult as such. It is us traders who sometimes make it unnecessarily complicated for ourselves. Trading has attracted me particularly in that you do not need to be a genius to trade on exchange and you can still earn decent money from the comfort of your home. The fact that there actually was work which would meet these criteria was a pleasant surprised to me.
- Could you let the readers closer to your trading strategy?
My trading strategy is quite simple. First of all, in trading, it is true that less is sometimes more. So you will not find any indicators or other extraneous stuff on my graphs. My trades are pure price action - support/resistance, reflections off of support/resistance, occasionally some congestions, mainly when such congestions are trending - all the better. I am trying to trade forex exclusively, trading up to 14 currency pairs in the M30 timeframe. This means that every morning between 8 and 10 a.m. (depending on what time I get up), I analyze all 14 currency pairs (which takes me just 3-4 minutes a day) and I chose 2 pairs (sometimes just one, if there only is one good trading opportunity) which I find most promising, and I open an order on the spot. I set up the protection parameters and I only have a look at the results in the evening. Of course, I use positive RRR, i.e. fixed at 1:2,6. I also risk fixed sums, using the SL fixed at 150 USD and TP at 390 USD. That is naturally not all of my MM, though. I use a more complicated MM but in any case, my MM builds on multiplying profit positions as I, metaphorically speaking, do not store profits in a pouch but risk the profits in further trades. Actually, it could be termed as an anti-martingale strategy, as I multiply profits but eliminate losses. I think that every quality MM has these properties.
- What do you think is most important for success in trading?
The strategy – a trader has to test historical data to see what on the market tends to be profitable on a long-term basis. Once he or she has found this strategy, all that remains is tweaking the money management and keeping the discipline. However, finding a profit strategy is not that difficult. Unfortunately, many traders hope to find profit strategies through various indicators, break-out strategies or various formations but very few traders trade the part of price action which is easiest to trade and also works the best on the market, that is, trading supports/resistances.
Money management – it is important to always trade with a positive RRR, to be able to accept losses and not to cover for them, not to close trades too soon, etc.
Discipline – after that when the strategy and MM are in place, it is most important to follow this trading plan.
- What was your main motivation for purchasing the Challenge?
I wanted to try some change. In addition, the terms and conditions of the Challenge seemed very acceptable to me so I decided to try it out.
- However, your first challenge was unsuccessful. What happened? What were your feelings?
At the beginning, I tried to follow the strategy. Then, a few losses followed one another quickly and I became nervous, I started covering for losses, shifting my SL, etc. The road to hell started to open...
- Would you recommend the Challenge to other traders? Why?
Definitely yes! I would even call on traders to invest their money into the Challenge rather than open a real account. There are a number of strong arguments for that.
- Many traders think that opening a 150 USD account can make them several hundred per cent of profit within a year, netting 1500 USD off of 150 USD. Such a probability is very low to unreal. A much more real possibility is to invest those 150 USD in the Challenge, keep the basic rules and make a moderate profit of 10% so that the capital of 10,000 USD is yours. You do not need to be a genius to figure out which of the ways is more advantageous.
- Many fresher traders deposit several hundred or thousand Euro on their real account even though every trader knows that starting out on forex is very difficult and in the vast majority of cases with a probability of 95% the trader loses all of their capital. They suffer massive damage (losses of hundreds to thousands of USD), they get frustrated and disgusted of trading, and they decide to quit. On the other hand, if instead of starting a USD account with a broker they purchased the Challenge, the worst case scenario would be losing the Challenge fee which with Challenge 10 makes about 150 USD and that is definitely a lot better than losing several hundred or thousand Euro! Not to speak about the fact that the Challenge sets rules for the trader, such as the maximum daily compounded loss, which do help the trader not to burn their account assets and trade in a disciplined way.
There are more reasons, of course, but these are the two main ones.
Tom, thank you for the interview and we wish you a lot of success as our FTMO Trader.