Wei showed excellent account and risk management skills in April 2019 and got a $1,000 prize!
Read Wei's interview and see his account statement-
to make your own success story
How long have you been trading?
I have been trading forex for 4 years.
How did you get involved in Forex trading?
At first, I was a professional trader at a friend’s quantitative trading company, but the trades ended with losing. Then I growed by myself and crossed the threshold this year by doing nothing more than learning the ABC of forex.
What is your trading style?
I am using the Martingale strategy. I don´t add to the position too often. In addition, I don’t deliberately take hedge. In other words, I pay close attention to levels, instead of focusing on technical indicators.
If levels are suitable for trading, I place an order using a small portion of my capital. If my order is against the market behaviour, I add to the position until the order moves to the positive side. Because the market is either up or down, and there will always be a pullback or rally. You have to figure out how to deal with it, certainly including a stop loss order. Never invest too much of your capital easily, because it’s only when you have money that can you stage a comeback.
Do you practice risk management?
I use stop loss order which is up to 60%, and I am also using hedge tools to reduce risk.
What are some good habits smart traders develop?
Don’t place an order blindly, don’t trade the price action if you can’t understand it, don’t believe in yourself blindly. Never invest too much account capital easily, because you can't have a 100% win rate, no matter how well you know the market. Only purpose of trading Forex is to make a profit, so it is good if we have winning trades. As for the size of the profit, it depends on the market, not the size of position.
Describe your best/most memorable trade (How much did you profit? What was the strategy? What pair?)
I got a profit ratio of 80% in January this year. At that time, after holding the position for 20 days, I made the first profit, and the profit ratio was 50%. I have never tried the Martingale style of holding positions after positsons are already on profit, the effect was quite good. Quite often my hedging tools are also on profit.
What advice would you give to new traders?
When I started trading Forex, I used the Martingale strategy, then I tried locking positions, hedge, trend indicators, and so on, but later I found that In fact, most of these technical indicators are not useful. I say this because many traders like to take advantage of the resonance of indicators. In other words, they place an order when several indicators show the same signs of opportunity. It does improve the win rate, but you can’t always take profit. I would rather look for a system that I can understand and that suits me and try to master that system rather than using many methods that I am unfamiliar with or that are someone else's. Trading doesn't have to be complicated. Strict stop loss and disciplined management of size of position are the key to winning, rather than a deification technology.
Considering the current state of the market, what do you think are the news/events traders should keep an eye on?
As previously mentioned, never invest too much account capital easily. When the price action appears, don't always think you've hit top or bottom and are going in the right direction. Nothing in trading remains the same otherwise there will be no losers in the market.
What are the most important things you look for in a Forex broker?
One is the spread, which is the basic condition for traders to cooperate with brokers. I believe a reasonable spread can lead to better cooperation. Another is the flexible leverage. The third is fluctuation consistency between tools price and market price, and the slippage shouldn’t be too much.