Welcome to the new article where we talk with new FTMO Traders. They talk about their journey and give valuable advice to those who are looking to join FTMO soon!
Trader Yong talking about psychology and emotions in trading
Has your psychology ever affected your trading plan?
Yes indeed. I have lost several challenges and even funded account, not because of the loss, but the violation of rules and lack of self-discipline. Trading psychology is something that I've been focusing on during these past few months to ensure I detach any emotions from my trading.
How did you manage your emotions when you were in a losing trade?
To be honest, I like the way that FTMO actually has certain restrictions such as -5% maximum daily drawdown, it really helps in controlling our emotions too knowing that there are certain rules to comply.
I have a trading plan that if I lose more than 2 trades in a row on a daily basis, I will leave my desk and call it a day and continue tomorrow.
Knowing that Forex, commodity, and indices market open 24/7, 5 days a week. Fear of missing out behavior will lead to tons of avoidable mistakes and unnecessary loss. Taking a break always helps in re-charging my mindset.
How did you eliminate the factor of luck in your trading?
Luck is definitely something that should be avoided in trading. You can have good wins and bad wins, good loss, and bad loss.
Focus on back-testing, practicing in reading charts and trading psychology will eliminate the luck factor in my trading, developing several strategies that fit into different market condition, and have a positive expectancy in the market.
How did Maximum loss limits affect your trading style?
The maximum loss limits are a good thing that restricts our negative emotions in my personal opinion, yes of course it does affect everyone's trading style, but it is definitely something tolerable.
How does passing the FTMO Challenge and Verification changed your life?
The Challenge and Verification have played an important role in my trading career understanding the importance of sticking to your plan and eliminate negative trading habits.
What would you like to say to other traders that are attempting the FTMO Challenge?
Do not take it easy. Remember that if a doctorate degree requires 4-5 years, so does trading.
Yes, indeed trading is something that could change your lifestyle, giving you the financial freedom that you aspire to have.
But you must never focus on the profit in the early stage, focus on the process, developing a strong foundation instead which could lead to long-term success.
Trader Haizel from Singapore
How would you rate your experience with FTMO?
My experience with FTMO has been nothing other than amazing. The replies from the support team were fast and efficient and made the entire process smooth and stress-free.
How did Maximum loss limits affect your trading style?
The limits/rules set for the challenge and the verification did not affect my trading style but in fact, helped me to become more disciplined as it discouraged me from over-trading.
Describe your best trade.
I took a lot of trades over the course of the Challenge and Verification rounds, but the best trades were the ones that got me past the 10% and 5% profit target respectively!
What inspires you to pursue trading?
I've always been interested in investing and trading but never got the time and the opportunity to start learning as I was busy with my full-time job. When the COVID-19 came, it affected my industry (air travel) and that made me re-think my future and kick-started my trading journey and I've gotten hooked on it ever since.
What was the hardest obstacle on your trading journey?
The hardest obstacle would definitely have to be controlling my emotions and being disciplined. I started my journey early this year in April just as the pandemic kicked in and I had to get through a lot of losing streaks, FOMO, fear of taking trades, and blowing accounts in the beginning as I started this journey without a proper mentor or structure. Looking back, it was worth it as it has made me a better trader today.
What is the number one advice you would give to a new trader?
Answer: Trust the process! The journey isn't going to be smooth sailing in the beginning but the rewards will come soon enough. Find a strategy that suits you, stick to it, back test it long enough to gain confidence, and just focus on executing the trades over and over again. It's a numbers game, so let the edge work for you in the long run.
Trader Zoran shares his FTMO experience
Describe your best trade.
All winning trades are my "best trades" but if I had to choose it was a series of 3-4 trades where I was scalping the Nasdaq (Long) which took me over the 10k profit in the Challenge. This was a big step as it meant I could move to the verification stage.
How did Maximum loss limits affect your trading style?
The maximum loss limits really force you to evaluate your lot size and ensure that your discipline and trading psychology are intact. They also ensure that you properly calculate your risk so that you wont blow your account. To be honest it's possibly the single most important aspect of both the challenge and verification.
How would you rate your experience with FTMO?
Answer: I am extremely happy with FTMO's service to date. Even though I am in a 10hr time zone difference, the level of support is not in any way affected. All my emails are responded to in a timely manner. I love all the videos they post and above all, I love their transparency.
What was easier than expected during the FTMO Challenge or Verification?
The Challenge was obviously harder because the target is higher. I took my time though and I didn't want to rush and complete it 3-4 days because that can mean you are forcing the trade. I completed the Challenge in 12 days which I was happy with. The Verification was of course a lot easier and allows you to trade without pressure.
What do you think is the key to long term success in trading?
The long-term success in trading is to give 99% focus on risk and psychology and 1% to trading.
If you do that the rest will take care of itself.
Let's face it anyone can make a trade by the click of mouse and Boom! You are a trader.
How you manage that trade, is totally different mindset.
When I started trading 2-3 years ago, I was lucky enough to discover books and online seminars by Mark Douglas. Even though his material is 20-30 years old, it's still relevant today and I would encourage anyone who is looking to succeed long term in trading to study and read everything he has produced.
One piece of advice for people starting the FTMO Challenge now.
One piece of advice I would give to people starting the challenge is to begin trading with smaller lots until you build enough of a buffer so that you wont put your maximum drawdown in jeopardy.
As your balance grows then increase your lot size.
Also, make sure you treat the demo as though it were real money and trade accordingly.
Most importantly if you feel that you will not meet the 30-day target and you haven't violated the drawdown limits, try and keep the account in some positive territory and try again.
From what I have seen some of FTMO most successful traders didn't pass the initial Challenge, but they tried again.
Trader Shuaib gives advice to new FTMO Traders
Do you have a trading plan in place, and do you follow it strictly?
Yes, I have a strict plan in place which helps me exercise discipline. There are few specific patterns and confirmations I look for in the market and I do not take a trade until I see them all lined up together.
What was the most difficult during your FTMO Challenge or Verification and how did you overcome it?
The most difficult part was just staying disciplined and not chasing the market to finish the Challenge or Verification asap.
What was easier than expected during the FTMO Challenge or Verification?
Both the challenges were easier than expected. The rules in place are really favorable and with the right strategy in place with proper risk management. I believe any experienced trader can accomplish it.
Do you plan to take another FTMO Challenge to manage even bigger capital?
Yes! 100%. Soon I am looking forward to taking 2 more 100k challenges simultaneously, so I can merge all three accounts for a 300k master account.
How would you rate your experience with FTMO?
10/10. No regrets or any second thoughts at all. And I would definitely recommend it to anyone who is serious about trading!
One piece of advice for people starting the FTMO Challenge now.
Stay consistent! Backtest your strategy.
Make sure your strategy and risk management are good enough to adhere to the rules of the Challenge and Verification and trading objectives.
Don't be afraid to place a trade if all your conditions are met. NEVER EVER chase a market no matter how tempting. NEVER EVER place a trade that's too big in case it goes against you.
Trading is a game of probabilities. A couple of trades that go against you does not mean your strategy is bad. So, don't keep changing strategies. If you have proper backtested your strategy, then you should have enough conviction that it will be profitable in the long run.
Why loss was the best trade that could happen to trader Motoi?
How did Maximum loss limits affect your trading style?
Thanks for that! Really, I mean it. In this job, it's nice to have somebody tell you what to do and what not to do. Think of those limits not affecting your trading style but improving it.
What do you think is the key for long-term success in trading?
Think of money management and psychology. You can base your entries out of a flip of a coin and still be successful if you master those two. However, you will still need to do your slow grind, mostly not to develop your perfect technical analysis or entry systems but to get a good grasp and understanding of the above statement.
How did you eliminate the factor of luck in your trading?
I first needed to identify the "luck factor" in my trades. That level of honesty takes some time to develop.
Once that done, I've realized that however statistical or methodical of an approach I take, some luck or some misfortune still applies.
In the end, I try to think like professionals. A casino, as a business doesn't know if you'll strike red on your next roulette bet.
It doesn't need to know that. It could be either lucky or not and make money out of you on your next bet - or not.
If you're a gambler, you may look at the casino in these terms, they got you, they were lucky or... you were lucky.
But the casino sees you and your fellow gamblers as a progression of statistical certitudes. I try to follow that mentality, if you manage risk - you absolutely need an objective and verifiable edge.
With that - and your trust in it - it only becomes a matter of time (...and a lot of discipline and patience...).
Describe your best trade.
A loss! Some time ago, gone long on GBP/USD but against all odds, "perfect analysis", lines drawn on charts, supports and trend lines it simply dropped. Took the loss. But that time was different because of my state of mind. I've felt for the first time, back then, that no matter your effort, your best tries, your maximum abilities and concentration, you can still fail and be pretty much powerless about it. If you manage to get over that, in my opinion, that trade will teach you more than a thousand winners. You'll learn to respect the markets, never judge in absolute terms and find out that it's not about your "best shot", "best day" or "perfect analysis" but your ability to balance your state of mind over probabilities and across time.
What was the most difficult during your FTMO Challenge or Verification and how did you overcome it?
Bad timing. I tried to both do the Challenge and manage some problems at my business at the same time. I felt the pressure to perform and tried to treat the Challenge as another bullet point on a long "to-do list". Don't do that! There's no greater enemy than yourself.
