Global Markets Fall, Top 7 Stocks Down $1Tn Plus the Leaders’ Stats

WTI Crude OilGlobal markets took an absolute beating overnight as record valuation levels deterred those currently invested and newbies looking to enter the market.

One of the most talked-about stocks in the world today is Tesla. Unfortunately for Elon Musk, today the talk was for all the wrong reasons, with Tesla losing more than the combined market value of GM and Ford.

Here’s a shortlist of a few of the largest falls overnight:

·         Telsa: -21.06%

·         Apple Inc: -6.73%

·         Amazon.com: -4.39%

·         Shopify: -5.72%

·         Microsoft: -5.41%

·         Bitcoin fell below the $10,000 market too

For those of you living in Indonesia, here is a sobering perspective of how much market value has been wiped off the leading tech stocks over the past three trading days.

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To compound the nervousness among investors, AstraZeneca has had to pause their coronavirus vaccine trial after an unexplained illness in a volunteer.

But none of these headlines have deterred our top ten leaderboard, with Gui Lin Li extending his lead, pushing his September gains to 111.64%. Please note that trading leveraged instruments carries risk, and you can lose more than what you start with.

Let’s take a look at the current leaderboard.

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Gui Lin Li and Yi Yun Zheng catapult higher to cement their position at the top

On Monday, we highlighted the full trading statistics of our leader, Gui Lin Li. Click here to view his trading statistics and his style of trading.

Since that time, Gui Lin Li has moved his account from 63.49% to 111% in just two days. You will want to find out more about his strategy and how he has done it.

But today, we are going to dive into the trading stats of second place, Yi Yun Zheng, who was third on Monday at 12%.

Since Monday, Yi Yun Zheng has dramatically increased his return and is now sitting at 56.3%.

Let’s take a look at his equity curve and statistics.

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You can see only a handful of trades have been made, and after an initial rocky start, his strategy moved quickly into the black.

Yi managed to generate the bulk of his returns shorting Gold, as it fell from his initial shorting price of $1,940.30 on the 4th of September, then closing them as the price moved lower.

Then on the 7th of September, Yi went short again around the $1,937.22 level, taking a handful of contracts, then closing most between $1,926 and $1,928.

This period of trades between Friday and Monday saw his account hit 8 consecutive winning trades, totaling $1,105.

Since that time, he moved away from trading Gold, as it continues to trade range-bound, focusing on the following instruments:

·         DJ30

·         GBPJPY

·         WTI Crude Oil

Nasdaq provides the volatility to drive Yibiao’s account higher

Another big mover in September has been the account of Yibiao Xie.

Yibiao has been stalking the Nasdaq Index, placing 100% of his trades on this instrument.

His focus has paid off handsomely, with an 82% win rate and an average win of $32.24. And with stats like that, you cannot help but make money.

Further to this, you can see his largest winning trade is bigger than his largest losing trade, which is not easy to do.

Many traders fall into the trap of letting their losses run, hoping the trade will turn around and move back in their direction.

Unfortunately, that is not often the case.

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Consistency in being able to cut the losses off short

We’ve now had the chance to provide many equity curves and trading statistics of our top traders.

And what we see time and time again is the ability for the leaders to keep their account alive.

It may sound funny saying this, especially given the stratospheric returns of our leaders, but many are highly disciplined at trading in a ‘risk-averse’ fashion.

I know what you are thinking.

These guys are making returns that defy sensible risk management. And for the large part, you are right.

There is always a correlation between the amount of risk you take on versus the potential for reward.

But what you will notice when looking at the trading statistics, those repeat winners tend to be the ones who focus exclusively on being in the game to fight another day.

Can you survive a series of losses on your account?

Every single account has losses. And every account (for the most part) has a series of consecutive losses too.

The challenge for all traders is to manage your risk in such a way as when the inevitable series of losing trades hits your account, you have ample funds to keep trading and access more opportunity.

This is easier said than done, but as you can see from our monthly MT4 trading contests, this is possible.

Now is the time to embrace the volatility and allocate an amount of risk that allows you to access opportunity but still provides you with the ‘sleep-at-night’ factor.

The sleep at night factor

The sleep at night factor is simple.

At no time should you have positions running that impact your ability to sleep as a result of your risk being too high.

If you are currently sitting on open positions and your palms are sweaty, knees weak, and arms are heavy, then its time to ‘get smaller’.

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Lyrics from singer Eminem in his famous song, Lose Yourself.

This means, reduce, reduce, and reduce.

Keep reducing your size till your open risk is insignificant to your overall account, and your risk is less than 1-2% of your overall account size.

This will allow you to sustain a series of losses and live to trade another day, one of the most important rules for professional traders.

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Ashley Jessen // Author of CFDs Made Simple, Head of Marketing at ACY Securities

Ashley Jessen is the author of CFDs Made Simple and Head of Marketing at ACY Securities. He has been in the financial services industry since the year 2000 and worked for some of the leading companies in the CFD, Forex and Online Trading space.