Dongyuan Zhang managed to generate an outstanding return of 176%.
We are very excited to get into the mind of one of our winning traders.
So, it is with great pleasure we bring you the following correspondence on how he managed to achieve this great return. Please keep in mind that trading leveraged products is risky and you can lose more than you start with.
Below is a reminder of the incredible returns posted for November, in stage 6.
Please note that trading leveraged instruments is risky and you can lose more than what you start with.
Scroll down below to read the full interview.
Let’s jump into the interview with Renee Li and Dongyuan Zhang below.
Renee: Thank you for doing the interview with us, Mr Dongyuan Zhang.
Mr Zhang: Thank you for having me!
Renee: Firstly, congratulations to you for becoming the champion at Trading Cup stage 6 trading competition!
Mr Zhang: Thank you!
Renee: How long you have been trading?
Mr Zhang: I have been trading Forex for 6 or 7 years. I have been trading with ACY for a long time.
Renee: How long you have been trading with ACY?
Mr Zhang: I have been trading with ACY for nearly 5 years since 2015.
Renee: What do you think of ACY Securities as a broker? Are you happy with the services that we provide? As a loyal client, would you like to share with us about your experiences of trading with ACY?
Mr Zhang: I think ACY has upgraded in many aspects throughout the years that I have been trading, in terms of reducing costs, technology, trading conditions, and services. I am happy with the services that ACY provided. Particularly, the way how ACY processes depositing and withdrawing are fast and safe, which is very convenient for me.
Renee: Thank you for your continuously support! My second question is that what made you interested in trading?
Mr Zhang: I started to trade since 2007. I started to trade stocks in 2008.
Renee: It has been 12 years since you started trading.
Renee: Based on your trading experiences, what do you think is might the factor or factors that can lead to a success?
Mr Zhang: I think having a good mindset is very important. Also, I think luck should also be taken into consider as well. If we looked at the traders’ performances from trading cup competition stage 1- stage 5, many of them performed brilliantly and had unbelievably high return rates! The reason why I choose to enrol at stage 6 was just to give a shot without caring too much about the result. I have been participating since the first trading cup competition and I also went to the grand final nights in 2018 at Shanghai and in 2019 at Macao.
Renee: So, you have been to both grand final nights! That is awesome!
Mr Zhang: Yes, I did. And the reason why I entered was just to give a shot. And I did not check the leaderboard in the first half month because I decided to focus on trading and not let the result to affect my trading strategies. Only a few days left before stage 6 finishes, I went to check the result and saw my name on the leaderboard. I also saw that another trader’s return rate was very close to me but unfortunately that trader did not manage to keep it till the competition finishes, which I feel quite unfortunate.
Renee: I think timing and when to enter the competition is also part of the strategies. I think you did a great job at stage 6 competition!
Mr Zhang: I think trading cup competition enables me to see how other traders performances and provides a platform for our traders to exchange ideas and learn from each other. Also, if you have following our trading cup blog, we update latest news and traders’ performances, trading strategies and trading styles in our blog in the hope that we can provide as much insights as possible for all traders to exchange ideas and learn from each other.
Renee: Compared to $100,000 capital and 1-Million-dollar capital, how much do you think you would invest in respectively and would you adjust your trading strategies based on how much you invest in?
Mr Zhang: Regardless it is $100,000 or 1-Million-dollar, I would put 60% - 70% into investment and save the rest.
Renee: What about trading strategies? Would you adjust your trading strategies based on how much you invest in?
Mr Zhang: Of course! I would trade more aggressively if the amount of investment is what I consider low, while if the investment is considerable, I will focus on managing my risks. Look, one trading strategy that I apply is to go with the trend and with small positions. For example, I expected gold to drop. In other words, I think gold price movement will show a downward trend. So, in the competition, I took short positions, but each position was small.
Renee: Apart from gold that you just mentioned, did you trade any other trading instruments?
Renee: So, you mainly traded gold.
Mr Zhang: Yes, I did. And the other reason was that I think the gold price movement was easier than the Forex’s to predict. After all, we only have 1 month to trade in the competition. I think gold can offer more trading opportunities. Thus, I decided to focus on gold.
Renee: You mentioned that you think gold shows a downward trend. My question is what made you think that. Did you use fundamental or technical analysis to predict the movements?
Mr Zhang: Sure, I would love to share. I think for me it is more about experiences. When I say experience, I mean the amount of time that I spent watching charts using candlesticks. There was not much big movements for gold price, which made me think that the risk of selling gold is much smaller than the risk of buying it. Since gold price hit $1940, I started to short gold. However, I only opened small positions because gold price is much more fluctuated compared to a few years back.
Renee: Apart from technical analysis, did you apply fundamental analysis as well?
Mr Zhang: Yes, I do consider fundamental analysis, but we cannot predict the big news. For example, the gold price could rise or drop significantly due to a breaking news, but this is something that we cannot predict. Other than that, I think charts is a good way to help me predict the next movement of gold. After many years of trading, I am confident to trust my own judgements after reading the charts using candlesticks. I reply on my own trading experiences.
Renee: Apart from using candlesticks, do you use any indicators?
Mr Zhang: I use Bollinger Bands sometimes.
Renee: My next question is that do you use any software or devices that can help with you trading?
Mr Zhang: I just use MT4 trading platform.
Renee: Apart from the trading strategy that you mentioned, which was going with the trend and opening small positions, any other strategies you also use?
Mr Zhang: I mainly use the strategy that I just mentioned. Other than that, not much I can recall. But I might adjust my trading strategies when the price is ranging. I will go both ways, doing short and long. However, when I can see a downward or upward trend, I will only go with the trend.
Renee: When the price is ranging, would you still open small positions or you would trade more aggressively?
Mr Zhang: I would trade more aggressively.
Renee: Would you like to explain the reasons why?
Mr Zhang: Sure! Normally, when price is ranging, I normally open positions without setting a stop loss. Reason being within a short period of time, such as 1 or 2 days, the price might go back to the same price when I entry the market. In other words, I think when the price is ranging, the risk is lower than when the price is fluctuated. Therefore, I trade more aggressively when the price is ranging.
Renee: Would you hold short and long positions at the same time or only hold one before before closing it.
Mr Zhang: I would only hold short positions or only hold long positions at one time. For example, before closing my long positions, I would not consider open short positions. And before I open a position, I would use Bollinger Bands indicator with 4 hour period to predict its next movement.
Renee: My next question is that do you have some books or educational videos that you would recommend to our audiences?
Mr Zhang: I cannot recall any at the moment. All the books that I read were about teaching me how to trade stocks. But trading stocks and trading forex are very different. I would like to read some books that can help me with my trading.
Renee: Our ACY blog update market analysis and educational materials daily. Feel free to have a look at them. Hope it can help you with your trading!
Mr Zhang: Thank you!
Renee: Congratulations to you for gaining the first place at stage 6 Trading Cup competition and securing a spot at grand final night. Have you thought about it? What trading strategies you will use in the final competition?
Mr Zhang: I think mindset is definitely very important. Also, having a good judgement is also very important. Because we only have one hour in the grand final trading competition, I will try my best to find as much trading opportunities as possible. Also, I think I will have to trade aggressively as well.
Renee: My last question is that would you like to give us some feedbacks about 2020 Trading Cup?
Mr Zhang: Sure! First, a big thank you to ACY Securities who provides the platform to traders, including myself, to have the great opportunity to exchange ideas and learn from each other.
Renee: Thank you for having the interview with us! We are looking forward to seeing you at grand final night!
Mr Zhang: Thank you for having me! Thanks again!
Interview conducted by Renee Li, Content Specialist at ACY Securities.
Click the links below to catch up with interviews from our past champions.