Just came back from a 3-day trip to Tokyo today.
I met my friend who is a professional trader ( 9 years experience) and a trading anomaly in my opinion. Learned a few shocking life lessons, things that I will probably see as major turning points in my future life.
To get into the meat of the story, The scene starts with me meeting my friend and us talking about trading in Shibuya.
Me: Hi! What were you doing today? Doing charts analysis?
He: Yup, exactly! I was reviewing my trades of the past week.
Me: By the way how much time does it take you each weekend?
He: Quite time-consuming actually! Usually takes me at least half a day!
Me: So what do you do mostly,… analysis for the upcoming weekend?
He: Actually chart analysis I can get done in about an hour, that is no problem. It is past trade analysis/review that I spend most of my time on!
Me: So, talking about your trading style, how many pips is your stop and target usually? Roughly speaking?
Him: I scalp really short term so the stop is usually only 1-2 pips.
Me: So how about risk reward?
him: Target is the same as stop so RR is 1:1 but I trail my stops and let positions run a lot when they go in my favor in real time so I can get quite of a move.
Then he takes out his phone and shows me a phone screenshot of the P/L of his recent trade. I watch it.
Me: Oh, so you made 46 pips… Nice!
Me: Wait… WITH A 1-2 pip stop???
He: Yup pretty much.
Me: Are you kidding me!? I have never seen anything close to this in my 3 years of trading! I do get 5-10 R occasionally, but this is something new.
He: But look at the profit of this trade! The profit on this trade is 1 million yen!!! (~$8500) Hahaha.
Me: Wow. Very impressive.
Then a couple of hours go by and he is sitting next to me surfing some app or web page on his phone.
He: The Greek decision has been made!! I will have 2 million yen ( ~$16,700) of profit waiting on Monday!
Me: Wow, how do you know?
He: Because I sold Eurjpy and my decision turned out to be right! Just wait and see! EURJPY will have go down at least 200 pips on Monday, just mark my words!!
Me: You mean, that there will be a gap on Monday?
He: Yes! USDJPY will also gap down!
He looked extremely excited. Then comes Monday and EURJPY gaps down about 300 pips and USDJPY a lot too. Turned out he was spot on. Now this was a shocking moment. Just 2 years ago he made 170,000 yen (~$1700 at that time) on NFP, joking that this is somebody’s monthly income that he earned in a few hours. Now, 2 years later, he made 2 mil yen (~$16,700) on his trade. This means that now he is earning 10 times more than he earned in front of my eyes 700 days ago when I met him!! This means that he earned pretty much as much money in one weekend that somebody else earns in a year!!
Now that is a difference in progress! Not to say that he wasn’t outstanding even 2 years ago!
And you can guess what I thought instantly. Something along the lines of: What have I been doing these past 2 years!!? Why haven’t I myself progressed as much as he has? How should I improve what I am doing? What habits to take up/copy from him? Needless to say, this experience changes my whole world. and it all happened only in 12 hours! This experience totally rewrites the whole script and the way I think about trading.
Me: By the way, what work did you do before you started trading?
He: I was a construction dispatch worker.
(FYI it is not a high paying job at all.)
Me: And so did you go to university?
He: No. I didn’t even go to university.
Me: And you made a Tesla Coil by yourself and can create explosives without going to an university!?
He: Yes, science and engineering are my hobbies.
- Working alone by yourself is not enough. Sometimes just a few hours with the right person can change your whole life and the direction your next half a year will take. You might be spending every day of yours totally differently all thanks to a few hours with the right person.
- Once again, it is not just that profitable trading is possible. It is even more important that making crazy returns on investment and huuuge profits is possible as well !! – Warren buffet style unimaginable returns in thousands or even millions of percents!
- Once you get the message, hang up the phone. ( Meaning: Start applying every bit of new information asap before you forget it. Copy what a pro does, do not be too creative and have a big ego).
- People open up new doors to things you did not even think about. Even things that you could not have conceived of without them.
- If you change the way you think about money & profits, and look at things differently, you can have totally different results! You can make things you thought were impossible possible!
- Do not be afraid to contact high caliber people, doing that might just change your life forever!
- Do not restrict yourself too much on what to do. ( If I thought meeting a person and partying with him was a waste of time and had sat at home staring at charts this time, I would not even have had this conversation!!!).
- Change the way you think about money. See this example: He made in a few days the amount equivalent to somebody’s yearly income or yearly living expenses!!!
- Find other hobbies and do not feel guilty about taking time off! He does very many things besides trading and is still making outstanding returns!
- Party, have fun and do not do too many analytical things! He told me that his brain is overly analytical so that sometimes he thinks too much and can’t sleep at night ever since he started fx! He was joking that his brain overheats.
- Meet old friends.
This post is to all you who need some courage, encouragement, proof and motivation!!
Many of you have been looking for this so hope it helps!
This is all real and while it is not impossible I might have missed or misunderstood some details, the points and lessons are still valid!
I think this experience opened up new dimensions of the mind to me in terms of my thinking and set me a new standard which to judge things by.
Good luck guys!