Interview with the Strategy Provider - Perpetuum Investments
Hello and thanks a lot for your time. Let’s start straight away - how did you actually get into trading for the first time? Which markets did you start with?
Hello, and thank you for the invitation! Sure! Well, I wanted to do something different from following the social model in which you get employed after you graduate from university studies. The fact is I didn't see myself working for somebody else, as I enjoy doing things that fuel my dreams and also wanted to do something good for the world - I know what you are going to say, but I was young (he laughs).
So, I began researching and, almost by chance, stumbled upon a Forex Trainee course. I submitted my request, and they called me. So, that is how it all began, by something that you could consider random, but which I believe that it was, somehow, meant to be, as I have gone so far, and I am grateful for that.
If you look back, would you do it again?
Nowadays, trading in financial markets becomes more and more popular worldwide and we can see a lot of beginners, and even young people trying to beat the markets. What would you advise to these traders who are just starting their journey now?
I would tell them that it is a great thing they want to embark on this adventure, but they have to know that the benefits that trading in the financial markets offers come after a long bumpy road. They have to know that they will need a lot of determination, ambition, and will. The majority of them drop the idea after a few months, just because they see that there is a lot of work they need to put in and, also, because they believe that it is a "get rich quick" scheme or as easy as learning Photoshop :) Now, I know that Photoshop is a complex software, which requires a steep learning curve. However, after a few tutorials, you find your way around it. Nonetheless, this does not apply when trading in the financial markets, as getting your way around here requires a tailored trading strategy and a trader's mindset.
I said earlier that most of them abandon the idea after a few months. Well, that is, most of the time, because of the trading strategy. The thing is that you cannot "purchase" or "acquire" such a strategy. You have to start with a very simplistic approach, of course, after you have the basic concept like the types of markets, the cardinal instruments of technical analysis, and so on, and then build up from there, based on your personality, your objectives, etc. All this takes a lot of time, effort, testing, and trial and error. And as people expect quick results, the aspiring trader or those close to him see this learning curve as a waste of time.
The situation is even more complicated when the trader realizes both the potential and needed work for this endeavor, is willing to put in the necessary effort, but his family, life partner, etc., pressure him to quit because he is not doing what everybody else is doing: getting hired and bringing a salary home. Well, some of us are just unhireable :)
But unfortunately, sooner or later, he might find himself in a situation when nobody, not even their close ones, agrees with him. It is a very lonely situation. Yet, that is the moment when they have to be honest with themselves and make a decision: either they quit, or they continue to pursue the path of their future happiness. The decision relies on what they've observed during the time before. That is, if they have some indications that they are on the right path, that their current knowledge springs some results, respectively, then they should continue to evolve. However, if they mark time and obtain no progress after a few months, or a year on top, then they should be thinking about something else.
Just remember that it's a long journey, but with a lot of benefits for those who stick to it.
And should they try forex or anything else? And why?
It is always a good idea to try other variants, as this enriches you with a broad perspective, thus giving you more chances to find what you are truly looking for or that one thing that you align with.
So, yes, give Forex a try! As you know, it is the most liquid and active market in the world, which brings a lot of benefits. Also, be open to other types of markets, as you may find indices or stocks to be more suitable for you. We are all different, you know.
How long have you been trading with real money?
I have been trading with real money for 12 years. Of course, there had been ups and downs, but I learned a lot of lessons on real money.
You remember, I previously said that a trader's mindset is also a piece of the puzzle. So, when switching from demo to live trading, many of us have a shock. That is because of our education, that money is a limited resource, and that losing it is not OK.
I recall my first day when I switched to live trading. I made the same trades on both my demo and live accounts. But at the end of the day, my demo account was in profit, while the live one had a drawdown. That was the moment when I realized that emotional management is also a part of the picture of success in this profession. I literally had to reconsider my way of thinking so that I could be able to stick to the trading plan.
That translated into learning how to wait for the Take Profit order to close the trade, instead of manually booking a few pips, pips that I would lose on the next trade that hits the full Stop-Loss order. I also had to teach myself to have the patience for the indicators to give the proper signals, for example. And yes, at that time, I was using technical indicators, as any newbie would do.
Do you remember your best and your worst trade?
Not quite. I mean, I have not blown up any account ever, so I don't have any worst trade. I only had strings of losses that, even with proper money management, did begin to bear on the overall capital a few times.
As for the good ones, likewise. What I could add here is that I once did an experiment and let a trade open on NZDUSD. It was in the direction of the daily or probably weekly trend, and all things lined up. So, I hit the Buy button after setting the Stop-Loss only. I wanted to test the swing trading method, as, until then, I closed all the trades on the same day. I left the position opened for three weeks, using a manual Trailing Stop. And this was how I decided to swing trade, instead of day trade or scalp. I consider this to be my best trade, as it encouraged me to make a decision that contributed to my long-term success.
What does a standard day look like for you?
Usually after I wake up in the morning and wash my face, I check the charts. I take a quick look, for not more than 5 seconds, to see what changed. The reason I do this is to have a while to process the information, but not in front of the platform, I go and do my stretching and pushups.
After that, I take my breakfast and read a few articles related to anything but Forex :) Google knows what I prefer to read, and so it will show me articles about the latest events in technology, IT, physics, music, nutrition. If it greets me with a Forex article, I press the "Show less" button to dismiss it.
Afterwards, I sit in front of the platform. And this is where the result of those 5 seconds kick in, as it helps me at the moment when I'm actually diving, so to speak, into the charts. The idea is that while not in front of the charts and doing my exercises, I can capture the essential info. Then, when I put myself in front of the platform, I meet the charts with more objectiveness.
Then I check to see if there is any new position that I can open. Also, if the markets are not already trending, I take two or three hours to do my homework. That is, I analyze the financial instruments that I trade so that I know what potential trades could come up. I like to have my plan already made :)
Then I take the time to reply to the business emails and messages and to have the calls if there are any scheduled.
Then I go out, either to have a walk and check what's new or to do some ordinary activities, like shopping, washing the car, or just going to see some friends.
Around New York open, I recheck the charts to see if there is anything interesting. After this, either I do some home stuff, or, if I hadn't done it midday, have a chat with one of my friends in a nice place.
The evening is for relaxation, like watching documentaries or reading and charging the batteries for the next day.
Do you consider yourself a "professional trader"? Why?
I do consider myself a professional trader because this is what I do for a living. However, this does not mean I am not still learning, as, in this profession, you always get to gain more understanding and reshape the way you see things and act upon the opportunities that the markets offer, thus becoming even more professional.
Do you trade alone or are you part of some trading community where you exchange ideas and share experiences?
I trade alone. I tried a few times to be part of a team or even a duo, but, for me, it's just not working. I mean, if I have an opinion and the other trader or the majority of other traders resonate, then great, but if their judgment is different, then I do what I consider that I have to. So, as this means that, in the end, I am acting alone, then there is no point in checking other opinions. Why? Because when different viewpoints do meet up, one could alter their initial plan. Sometimes this could indeed be a good thing, but most of the time it is not. And as trading is not about being right all the time, but about being right the majority of the time, I prefer to be on my own.
Don't get me wrong, as I like to explain or debate about different market scenarios. Still, the thing is that when you want to follow your decision and then you retain yourself just because someone has a different opinion, or vice-versa, then you leave yourself or that person prey to emotional imbalance.
Your strategy - Perpetuum Investments - is a part of the new section in our PurpleZone, called miniFX Strategies. It contains the strategies that are available to investors with as low as 100 EUR of minimum deposit requirement. What do you think about this approach and about the effort to make Strategies available for a wider audience?
Well, the market has traversed many episodes along with its history. And yet, here it is, shining even more. So, it is here to stay and will take all that technology and regulators throw at it.
I would say it is the traders that need to survive the market, as the market will always have reasons to increase or decrease volatility, to go up and down during a speech, to change cycles so that it puts the robot developers to constant work.
The future of trading, I believe and certainly wish to, will be aided by novel trading software. I see this software unloading time-consuming tasks from the traders and letting them focus on thinking and decision making.
I believe that the future of the Forex market is a bright one, as the currencies are here to say. So, the daily turnover will increase, as it did year over year. We just have to learn how to see that and, more importantly, adapt.
What is the future of the forex market and of the trading in your opinion? (ESMA regulation, market volatility, trading robots,...)
The Perpetuum Investments strategy is the culmination of many of the years that are now part of my trading experience. What I wanted to achieve as a trader, and ended up as being the driver of the strategy, was to have a sustainable approach, one that works in the long term, does not keep me all day in front of the computer, as doing this is not good for neither my nor the account's health, and that aligns with the major movements in the market.
Of course, all this trading business boils down to profits, which are directly related to risks. So, the answer to what is the edge of the Perpetuum Investments strategy is that it features a low-risk model. Many times I have seen talented traders taking huge risks. And, as I said earlier, when a string of losses did occur, their accounts suffered important drawdowns. So, instead of exposing everyones' capital for quick and big returns, I prefer to take lower risks and be consistent in the long term.
Regrettably, I have seen and heard throughout the years about many accounts that ended up badly, just because of the fact that their traders were taking huge risks. I believe that that shouldn't happen anymore, and that is why Perpetuum Investments is aiming to offer stability in the long run to its investors.