EagleTrader Trader Interview | Only by surviving can you be eligible to talk about profit

In the trading world, some people are addicted to the stimulation brought by high leverage, some are persistent in finding the Holy Grail system, while others have experienced liquidation, frustration and reconstruction, and still choose to stand in front of the market and face the challenges brought by price fluctuations.

The trader interviewed in this issue is Yao Xiaojie. He entered the forex trading industry in 2019. He has successfully passed the EagleTrader exam and decided to invest in this career full-time.

This is a trader who has experienced a liquidated position but is still rational and calm in the market. He emphasized: Risk control is the first priority. Only by surviving can we be qualified to talk about long-term and stable profits. So how did he get to where he is today step by step? How did he view “luck”, retracement, and unpredictable volatile markets? Let’s go into his trading story.

Love is the reason to travel through the cold winter

Yao Xiaojie trader was originally engaged in the advertising industry, and chose to switch careers to trading due to the cold winter in the industry. He has a clear judgment on the financial market: “The world is a financial history, and there will never be a cold winter in the trading industry. You can make money in a bull market, and you can make money in a bear market.”

What prompted him to persevere was the sense of accomplishment brought by trading and the role model set by outstanding predecessors around him. “But the most important thing is love.” In his opinion, love is a force that can support oneself to overcome every trough.

Technology, intuition and risk awareness are equally important

In terms of trading methods, Yao Xiaojie trader dismantled his decision-making basis into technical analysis 60%, fundamentals 10%, and intuitive experience 30%. It can be seen that he is a technical trader who is very sensitive to charts and price behavior, but at the same time he will not ignore the integration of long-term experience and intuition.

His system is not static. “I got an overprofit account in July last year, but later I went into a liquidated position.” He frankly admitted that he had encountered setbacks due to his neglect of risk control. Later, he adjusted his strategy, re-optimized it around risk control, and demanded himself to a higher standard: “The subsequent plan is to align with the requirements of the eagle and the medal.”

Yao Xiaojie trader did not pursue strict plans, but implemented decisions based on system signals, which also reflects that he found a relatively balanced way between rules and flexibility.

Risk control is the key to survival

When talking about the key to long-term profit, Yao Xiaojie’s trader gave no hesitation at all: “ControlRisk is the first priority, and only by living can you talk about long-term. “He said that the core of stability is to control greed, and don’t think about “one-stop” to prevent excessive exposure of risks from causing large drawdowns.

This risk awareness is not only reflected in concepts, but also in his operational behavior. When facing profit retracement, he will “guaranteed the position and partially reduce the position”, and at the same time “adopt the mobile stop loss idea” in combination with the market structure. If a heavy position causes losses to deviate from the original judgment, he will “cut all positions and leave the market” without hesitation and examine the market rationally again.

This calm attitude comes from an unforgettable experience of liquidating positions. That was the first time he operated the profit-sharing account, because the position of a single trading was too large, and he was eager to recover and continue to increase his position after losing money, which eventually led to a liquidation. “The mentality is very explosive, frustrated and blamed himself, which is a human error, and it is caused by the failure to strictly implement the system. “After this experience, he began to truly realize the bottom line value of execution and risk control.

Luck? It is just a projection of probability advantages

In the trading world, “luck” has always been a widely debated word. Yao Xiaojie’s trader’s understanding is particularly mature: “Luck is also a part of strength. Your system has a probability advantage, and luck will stand on your side. ”

He did not deny the existence of luck in the market, but also emphasized: “Trading for a living is not just about luck, but about maintaining awe of the market. “His vigilance comes not only from the lessons of the past, but also from his constant vigilance about market uncertainty: “Don’t be blinded by the winning rate, nor do you have the will to be taken away by short-term failure. ”

Prefer to fluctuations, choose the trend

In terms of trading types and market types, Yao Xiaojie trader did not conceal his preference for high-volatility markets. Especially the precious metal XAUUSD, compared with traditional currency pairs, he believes that the intraday volatility is greater, and the risks and returns have more room to release. “I invest in first-hand stop loss, and the returns I get are much greater than those in currency pairs. ”

For risk control, his standard is “to control the maximum risk within 2% as much as possible”, that is, split the risk tolerance of 100 points into 20 points and use it in batches in each transaction.

And once the maximum drawdown occurs, his experience tells him that he can return to the high point of net value in about 1-2 weeks. This sense of rhythm comes from continuous real-time polishing, and also from his understanding of his system’s probability distribution.

Exam gains and experience sharing

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During the exam, Yao Xiaojie trader said: “The biggest gain is risk control first. Only by surviving can he survive.” Compared to passing by himself, he values self-correction and the consolidation of the underlying structure in this process more.

Faced with traders who were still on the road, he also shared his suggestions without reservation: “Review more and learn more, and adjust according to your preferences to suit you.policy mode. Never want all market conditions, you have to give up and gain. “This sentence “having to give up and gain” may be the most sincere reminder to many novice traders.

In Yao Xiaojie traders, you can feel the calmness of no longer obsessed with “grasping all opportunities”. He understands that trading is not a confrontation with the market, but a long-term battle with himself and the system. He has breached positions, been anxious, and reconstructed, but in the end he chose to stay and continue to participate.

His story is closer to most real traders – we struggle, correct, and then set off again. He tells us with personal experience:

The end of trading is not the Holy Grail system, but a mentality, discipline and a continuous controllable risk control framework.