Interview with Stage 2 Champion Zhen Wang About His Strategies

The 2nd stage of the 2020 Trading Cup provided our team with the most awe-inspiring returns we have ever seen.

Zhen Wang managed to generate an unheard-of return of 3,429.89%.

As a result of his shrewd analysis on Gold and his willingness to add to his winning positions, no other trader got close.

As the old saying goes, ‘Daylight was second’.

Never have we been more excited to get into the mind of one of our winning traders than with Zhen Wang.

So, it is with great pleasure we bring you the following correspondence on how he managed to achieve this outstanding 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 July, in stage 2.

Scroll down below to read the full interview.

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How long have you been trading for?

I have been trading foreign exchange trading for more than 3 years. I have been recommended by a friend to trade in ACY Securities for 3 years.

What got you interested in trading?

I work in the financial services industry, so I have a certain understanding of how the market works and how people trade. After being recommended by a friend, I became interested in foreign exchange trading.

How did you start trading? What to you today are the most important aspects to be successful?

The most important point is that you need to form your own trading ideas and strategies during the trading process. These ideas help refine your judgement of the current market and even how you can develop strategies that would be best for any future market. Also, it is important to use stop losses and pay attention to your key main position or main underlying theme of the current market.

In my experience, I have found emotional management is critical too. From past experience, it is too easy to make irrational decisions and therefore make the wrong choice. I am also trying to combat those emotions.

If you had $10k, $100K or $1 million, how would you invest it? What would change and why?

The choices I would make on the different starting balances would be different for each. This is not an easy question to answer without giving it more thought.

Everyone has a trading amount they are comfortable with.

For example, I think I am better at trading using $100,000 in funds for trading.

If I have $1 million, I will invest $500,000, and the remaining $500,000 will be used as a reserve fund.

What do you currently trade/invest in?

In the Trading Cup competition, I only traded one product, which was Gold (XAU/USD).

What sort of trader are you?

I prefer medium-term trading instead of actively buying and selling on a short-term basis. Before the Trading Cup challenge started, I predicted the price of Gold will reach or even break through the historical high in the next one or two months. Therefore, I entered the market when the price of Gold was $1769 in early July and held a long position. With this underlying position open, I continued to watch the market and as I saw the opportunity, I continued to increase the size of my position as the market moved in my favour. At no time did I ever close the initial long position in Gold as the market continued to move higher.

What sort of indicators do you use?

On the technical analysis side, I prefer to use the stochastic indicator combined with support and resistance and trendlines. Also, I have a preference for overbought and oversold indicators like the stochastic and RSI plus I sometimes use Elliot Wave theory in my analysis. At the same time, I make sure to understand the factors that affect the price of gold, such as news events such as the Fed's interest rate meetings, China-US conflicts and geopolitics. The combination of the two aspects helps me to improve the accuracy of judgement of the key market trends.

Are there any trading related books or videos you would recommend to someone new to trading?

I usually don’t read many books, and I'm mostly practical. I have read a trading book-"Elliott Wave Theory: The Key to Market Behavior", which is very helpful.

What is your best trade you have ever had?

Thanks to the market volatility in July, the return rate of 3429% this time created my personal best record. I've also managed to turn $20,000 into $600,000 at a different time as well.

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What is your worst trade?

The worst is liquidation.

How are you planning to tackle the 1 hour of power for the finals?

Because the finals only last 1 hour, it must be different from my usual trading strategy. I think I will start to formulate competition strategies half a month before the start of the finals and select varieties suitable for short-term trading.

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What do you love about the 2020 trading cup so far?

Thanks to the 2020 Trading Cup competition for providing a good opportunity for practical exercises. Through the competition, the level of trading can be improved. Compared with normal trading, the timing of the game allows traders to maintain a moderate sense of tension. This sense of tension will make traders more sensitive to market trends and make their analysis clearer.

Other Interviews with the winners in 2020

Click the links below to catch up with interviews from our past champions.

·         Interview with Wen Bin Yang - Stage 1 3rd Place

·         Stage 1 Interview with the Champion Mao Long Yang

·         Algo Trading His Way to the Grand Final – Interview with Gustavo Correa

·         Interview with One of South Africa’s Best Traders

·         Interview with Mr Jilin Xu in the 2020 Trading Cup

Are you ready to join the next Stage? Click here to register an account.

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Ashley Jessen // Author of CFDs Made Simple, Chief Operating Officer at ACY Securities

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.