EagleTrader trader interview | Treat trading as a way of life

This EagleTrader trader interview welcomed an old trader-Zhou Hongbo. If I had to sum up Zhou Hongbo’s trading method in one sentence, it might not be “technically mature”, but rather restrained enough.

This kind of restraint is not deliberate conservatism, but a kind of self-judgment gradually formed in long-term trading: when the situation is not right, the most important thing is not to take action, but to stop.

While many traders still focus on winning rate, profit-loss ratio and entry point, they are more concerned about another thing – whether they are suitable to participate in the market at this moment.

Trading is not the only way out, so there is no need to rush to prove it

Zhou Hongbo’s exposure to foreign exchange trading began in about 2011. Unlike many traders who enter the market with the mentality of “must rely on trading to succeed”, he does not lack choices in reality.

In the past, he held various jobs, started a business, and opened a company. In his view, making money is only a part of life, while trading is more like an interest and lifestyle that can accompany him for a long time.

Because of this, he is not eager to prove anything in the market, nor does he equate short-term profits and losses with personal value.

When he decided to take the proprietary trading exam and manage the profit-sharing account full-time after passing it, it was not an impulsive turn, but a rational choice based on years of trading and life experience – treating trading as a long-term matter under controllable rules.

Technology only accounts for 30%, and the remaining 70% comes from “own management”

In trading decisions, Zhou Hongbo’s positioning of “technology” has always been very clear-only 30%.

What really determines the quality of a transaction is the remaining 70%: mentality, execution ability, and awe of risk. In his view, trading results often do not depend on “how precise the analysis is” but on whether stable judgment can be maintained when profits and losses occur.

Long-term stable profitability does not rely on a fixed model, but is based on the continuous correction of one’s own behavior pattern after repeated accumulation of experience.

When a person fully understands his own weaknesses, trading will become simpler.

Start by experiencing mistakes and put rules before individuals

Zhou Hongbo does not shy away from the detours he has taken. He has experienced liquidation and experienced the trough caused by losing control of his emotions. During that time, he did not attempt to engage in aggressive sexual intercourse.It is easy to turn over quickly, but choose to stop: study, review, and adjust your mentality until you are in the state required for rational trading again.

It was also in the process of preparing for the proprietary trading exam that he gradually made a clearer direction: future transactions must fully comply with the rules and risk control requirements of profit-sharing accounts.

We do not pursue short-term explosions, but only aim for long-term, stable growth. Rules are no longer regarded as restrictions, but as an active choice that can restrain emotions and protect accounts.

The understanding of “luck” determines how far a transaction can go

Zhou Hongbo does not try to eliminate uncertainty in the market. In his view, there is no “luck factor” that can be completely eliminated in trading. What really matters is how traders face each result – stop loss when it is time to stop, take profit when it is time to take profit, losses and profits are all indispensable components of the trading structure.

Therefore, when the position is unexpectedly overweight, or the market experiences a retracement that is inconsistent with expectations, his reaction is always highly consistent: immediately stop profit and loss, stop trading, and adjust the status first.

For him, trading is not an act that must be performed every day, but a job worth participating in only when the situation is right.

Extremely low risk in exchange for a long enough trading cycle

If the tolerable risk is defined as 100 points, Zhou Hongbo only uses 1 point for each transaction on average.

This is not out of conservatism, but a consensus he has formed through long-term practice: as long as you are still on the court, you will always have a chance.

In his trading experience, even if it encounters the largest retracement, it can usually recover to the previous high net value within about 5 trading days. There is only one premise – don’t let emotions amplify losses, and don’t let positions disrupt the rhythm.

Discipline is higher than technology, which is a conclusion that has been verified repeatedly

Zhou Hongbo always insists on formulating a trading plan and strictly executing it. Taking a light position, taking a stop loss, and controlling the trading frequency are all basic operations in his opinion. Compared with constantly optimizing analysis models, rules and discipline are the factors that truly determine the life of an account.

Whether facing a stable market or a highly volatile market, he maintains the same judgment logic: a stable market is more conducive to emotional management, while a volatile market means higher uncertainty, and risk exposure needs to be reduced accordingly.

A staged confirmation, not the end point

Looking back on the process of participating in the proprietary trading examination, Zhou Hongbo believes that the biggest gain is concentrated in one direction: risk management.

How to reduce losses, how to protect existing profits, and how to continue to participate in the market within a controllable range. The value of these issues is much higher than any single profit.

When asked what would you like to share with new traders?When asked, his answer was that this experience allowed him to see the future development direction clearly and confirmed the trading method he should really stick to. He hopes that new traders can also find a trading model that suits them in this exam.

For him, this exam is not a final proof, but a more sober choice: to put the transaction back to the correct position in a long-term and stable manner.

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