Trading is an unpredictable game that can swing dramatically with the tides of market volatility. Yet, there are some individuals who manage to navigate these turbulent waters successfully, drawing on their backgrounds, disciplined strategies, and psychological resilience. One such trader, who recently celebrated a remarkable $4,000 payout, recently shared insights into his trading journey in a compelling interview. Below, we summarize his experiences, techniques, and lessons learned, offering valuable insights for aspiring traders.
Background: Finance to Trading
Our trader, Kaushal, began his professional journey in the realm of finance, graduating with a degree that propelled him into a role as a project manager at a website design company. Despite the stability associated with his job, he found himself enticed by trading after being introduced to it by a friend. “Looking into the earnings actually was way more than you can get as a salary from a company,” he explained, which ultimately led him to explore trading as a serious career option.
Kaushal found the initial stages of trading daunting, describing the need to seek professional training to master his craft. “It was difficult initially, so I had to take a bit of training from a professional,” he recounts, showing the value of seeking guidance in a complex field like trading.
See Also: Njieng’s Successful Forex Trading Win Of $12K – Detailed Lessons & Blueprint
Trading Style and Strategy
Kaushal has developed a distinctive, disciplined approach that centers on quality over quantity:
- Primary Focus: Initially traded NAS100, but found it too volatile and switched to gold for its relative stability.
- Trading Style: “Sniper trading” – taking only 1-2 highly selective trades per day.
- Position Management: Uses calculated risk based on account drawdown limits.
- Risk-Reward: Typically targets 1:1 to 1:2 risk-reward ratios.
His approach focuses on:
- Taking only one highly selective trade per day
- Ending trading for the day after either a win or a loss
- Prioritizing account longevity over quick profits
See Also: Top 10 Best & Proven Trading Strategies For Beginners
Emotions and Resilience in Trading Journey
Handling emotions in trading is often where many hopeful traders falter. Kaushal emphasizes the significance of psychological resilience, especially after experiencing a drawdown on his first trade, declaring it “pure maths.” He describes his approach as fundamentally grounded in risk management.
“I already know how much I can lose in a day,” he says, advocating for a disciplined single-trade approach that most swing traders might overlook. “I’m not like a trader wherein you would see 10, 15, 20 trades I’m taking every day, making $100-200 profit. I don’t do that,” he explains. “I generally look for a sniper shot where I’ll take one trade, get a good amount of profit from that, and leave it for the day.” This focused strategy allows him to maintain clarity and sidestep the emotional traps often associated with overtrading.
Mastering Risk Management
Kaushal highlights the importance of calculated risk management and position sizing, stating, “Risk management in the sense it’s all calculated with respect to the drawdown.” He posits that determining risk should be based on a defined drawdown limit and daily profit targets, demonstrating a structured, methodical mindset.
His rule of thumb is to not exceed a certain drawdown in one trade, suggesting that keeping strict boundaries can be a vital tool in the trading arsenal. His meticulous calculation of risk not only aids in maintaining his profits but also keeps losses at bay.
Learning from the Initial Struggles
The early days in trading can be fraught with difficulties and missteps. “The main difficulty was understanding all the rules and regulations,” Kaushal recalls of his experience with proprietary (prop) trading firms. Having breached multiple accounts during his learning phase exemplifies the steep learning curve many traders face.
“Gradually, as it progressed, after losing out four or five accounts, I realized all the rules and regulations,” he remarks. This self-awareness transformed his approach from trial-and-error into structured learning, laying the groundwork for his eventual success.
Consistency Score Management
One of Kaushal’s most notable skills is his effective management of the consistency score requirement that many traders struggle with. He approaches it mathematically:
“On the evaluation stage… you have a 50% consistency rate, and it’s very easy because you know the target is $8,000. So you can’t have a profitable day which is more than $4,000—make a target of $3,600 or $3,500.”
For funded accounts where targets aren’t predefined, Kaushal recommends:
- Setting personal profit targets below the consistency threshold
- Calculating allowable daily profits based on previous trading days
- Understanding that consistency is calculated on daily profit, not account size
- Planning a series of trades that keep consistency below required thresholds
- Consulting with support team when unsure about specific calculations
Managing Losses and Avoiding Overtrading
Losses are an inevitable part of trading. Kaushal shares his strategies for coping with losses, emphasizing the importance of mental preparation and psychological management. “If I go on a loss, I just log out,” he explains. He actively resists the urge to overtrade, refusing to chase losses.
See Also: 5 Major Mistakes Traders make in Forex trading and how to Avoid them
Kaushal advises, “You have to prepare your mind and then things would definitely fall into place.” Acknowledging the natural emotional responses to trading, he preaches patience and self-control as fundamental virtues. “You can’t win every day,” he reminds fellow traders. “If you try to win every day, you would definitely fall into the trap.”
Community Support: An Asset Worth Having
Another key factor that contributed to Kaushal’s success is the supportive trading community he became a part of. He specifically mentions the impressive customer support of Funded Trader Markets, remarking on the speed and clarity with which inquiries were addressed. Such backing can bolster a trader’s confidence and enhance their success.
“The payout time at the FTM is amazing,” he states, reflecting on the critical importance of timely financial rewards in maintaining motivation and cultivating trust in the trading process.
See Also: Why You Should Choose To Trade With Funded Trader Markets?
Practical Tips for Beginner Traders from Kaushal
K offers several valuable insights for traders looking to achieve similar success:
- Limit Your Trading Volume: “If you’re going on a loss, you already have a setback in your mind. You keep on trading; a small move in the market, you think it’s a buy or sell. But those two buttons aren’t always there just to keep clicking.”
- Set Clear Entry and Exit Points: “When you’re taking a trade, you have an SL and a TP. That means you know where you want the trade to go. If it’s going in the right direction, wait till it gets there.”
- Accept Losing Days: “It’s not something that is unachievable; people do lose. You can’t win every day. If you try to win every day, you would definitely fall into the trap, and you will keep on losing. It’s a loop.”
- Develop Psychological Control: “This is something as a mind game. No one can actually help you to stop [overtrading]. You’ve got to prepare yourself mentally.”
- Risk Management First: “Risk management before profit, absolutely.”
Conclusion
The insights shared by Kaushal serve as a guiding light for aspiring traders navigating their path through the complexities of the trading landscape. From embracing the learnings gained through experience to deploying effective risk management strategies and actively engaging with supportive communities, Kaushal’s journey emphasizes that the road to trading success isn’t solely about making profits, it’s about cultivating a disciplined approach, staying grounded, and maintaining emotional control.
As Kaushal aptly summarizes, “Risk management versus profit – absolutely!” This perspective prompts both seasoned traders and novices to reflect on their methods, strategies, and emotional resilience in an ever-evolving market.
For those seeking to follow in Kaushal’s footsteps, remember, success in trading is a marathon, not a sprint. Stay focused, remain disciplined, and enjoy the journey!
