In talking with hundreds of traders, the one common story we hear is ‘I don’t have enough time to trade.’
So today, I wanted to take a look at one of the traders sitting 7th on the leaderboard, and the fact that he only placed two trades to get there.
As you can see, Yuan Wang is sitting 7th as highlighted in the table below. Like many of our top 10, he is also focused only on trading Gold.
Some of our traders have placed hundreds of trades, whereas Yuan Wang has only placed the two trades captured below.
Now you may be asking, how big of a position did he take?
As you can see in his trades table below, he took two positions close together. The first position was for 0.7 lots of Gold and the second position was for 0.8 lots of gold.
In relative terms, given an account size of $2,000, his position was large.
But in conjunction with the open positions, he did in fact have a stop loss on both positions, but the move lower, never triggered his exit.
While holding his two long XAUUSD positions, Gold got to a low of $1,717.53.
This means, Yuan’s account was in a large drawdown as Gold moved against his initial positions.
Now remember, trading leveraged positions comes with a high degree of risk, so each trader needs to first consider if trading leveraged instruments is right for them and secondly, to take into account their risk profile before opening a position.
Hopefully, this post helps you see that you do not need to be trading dozens of times a day to potentially do well. Of course, you still need to get the direction right overall, to move up the leaderboard.
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Ashley Jessen is the author of CFDs Made Simple and Chief Operating Officer 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.