Dulian Liu managed to generate an outstanding return of 124%.
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.
We looked at Mr Liu’s trading statistics from September here, here, and here, but wanted to include it below as part of his interview.
Below is a reminder of the incredible returns posted for September, in stage 4.
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 Dulian Liu below.
How long have you been trading?
Since 2013, I have been trading for 7 years.
What got you interested in forex trading?
My friends introduced me to forex trading. It really fascinates me. I am quite interested in it.
Congratulations to you again for achieve 3rd place with 124 % return in stage 4 trading competition! What contributed to your ultimate success?
I think it takes time and experiences to make good trader who needs to have good trading skills, good strategies, as well as a good understanding of the forex market. And personally, I value the in-depth knowledge more than the skills.
Since you mentioned about in-depth market knowledge, would you recommend some methods that can help our audiences to gain knowledge of the market?
Sure! Looking back, there were times that I made great returns and there were times that I failed badly. Regardless, through all these experiences I concluded 2 questions that can help me to avoid mistakes and improve my trading. Question 1, why we make a loss? Question 2, how do we make a gain? If you can answer these 2 questions and are equipped with basic trading skills, I believe that you can make a great trading return as well.
Would you like to share with us your answers to the 2 questions that you mentioned above?
I think one reason why traders make a loss is because they place big orders. We are human beings so sometimes when we see a volatile market, we might rush into it and place a big order that could get risky and might lead to a loss.
In this trading competition, how did you manage your positions and risks?
My trading strategy is to only place small orders and keep the total orders under certain levels so that I can minimise the risk.
What was the leverage you used in trading competition?
I used 500: 1.
As you mentioned that placing small order is very important and you only placed 0.01 lot per each order during competition, does it mean that you had multiple 0.01 lots positions opened at the same time?
Yes, that is correct. During the competition, I started with $2000USD. And when my balance was around 2000, I make sure that the total opened positions were less than 0.2 lots. When balance went up to 3000, I make sure that the total opened position were less than 0.3 lots, while when it gone up to 4000, I would keep it low as 0.4 lots. So that’s the ratio I keep in mind while placing orders.
Let’s move on to question number 2 “how do we make a gain”? Would you like to share with us?
Many traders are good at technical analysis and can predict the trend right, but they still end up make a loss. I think it is because the way how they set stop loss contributed to their loss. For example, last night, the gold price reached $1887 USD. They might wait till price go up to $1890 till $1892 to get into the market. And indeed, they predicted right about the next movement of gold price as well. But the way how they set stop loss was not wise. Also, the timing for them to close the order was not wise. Thus, it can potentially lead to loss although they did get into the market and they did predict the next movement right.
Did you use any indicators? And do you prefer technical analysis or fundamental analysis?
I use moving average. And regarding technical and fundamental analysis, it is hard to separate one from another. For example, gold price gone up from $1849 USD to $1918 USD. But if we look at the big picture, I think it was only a rebound because in the medium term, gold price will continue to drop.
What is your opinion about gold price in a long run?
In a long run, I think gold price will increase, but in a short or medium run, I think the price will continue to drop. For traders, the big picture matters to us, but the prices in a short or medium run also matter to us. And I prefer to short gold in a short run.
Can you recommend an educational book or video for our audiences?
Liu: Yes, I can. There is a book called “Trading Bible” by Branden Lee. For video, I would recommend a video called “Things you don’t know about forex trading by Mr. Yuan” by Yuan Sir. I agree to many things that Mr. Yuan mentioned in his videos. Especially when I listened to his videos again after I have experiences with trading, I started to agree more on the things that Mr. Yuan mentioned in his videos. I highly recommend it to beginners. If you find yourself begin to understand more on the things that he says after you start to trade, I think it means you start gain a deeper understanding about forex marketing and forex trading.
Thank you for sharing such valuable information wit us. Would you give us some feedback or advise about 2020 trading cup?
I think it is very good because it provides a platform for us traders to exchange ideas about trading and learn from each other. Thank you!
Did you enter our current stage 5 trading competition?
Yes, I did.
That’s great! We are looking forward to seeing more great trading performance from you
Thank you for having the interview with us, Mr. Liu
Thank you for having me!
Interview conducted by Renee Li, Content Specialist at ACY Securities.
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