We speak to Jorge, one of our traders, on his experience trading with us, his advice to new traders, and his journey into the world of forex. Read our Q&A with Jorge below!
Want to join talented traders like Jorge and try BluFX for yourself? Here are 4 Reasons It's Time to Ditch Forex Demo Accounts>>
BluFX Trader Q&A: Jorge
Could you tell us how you began trading?
I began trading a couple of years ago. I needed another income, and heard about trading. Unfortunately, in the beginning, I also thought it was possible to take a small account and grow it into millions in a short amount of time. Then, I fell in love with the challenge of trading, and I started thinking about turning this into a full-time job - although it is hard work, you have the freedom and flexibility to live your life on your own terms.
What difficulties did you face at the beginning and how did you overcome them?
I didn't know where to find the right education. I spent countless hours listening and reading a lot of resources, books, videos, some contradicting themselves. Sometimes things would go good, turning small accounts into larger ones, but then blowing it all up because I had a notion of technicals but no concrete plan nor risk management.
I was looking to make money, and with small accounts that is impossible. Unless you have around $50,000 to work with, you are going to have a hard time trading in a "professional way", without risking too much and sustaining high drawdowns, which is what professional investors are looking to do.
So I recommend most traders study their craft first. Build a process and track record. Don't look into making money in the beginning, but focus on percentages. If you can average 2,5%-5% per month on a small $100 live account, with a low drawdown % and focus on the process, you will be able to look for investors (prop firms, etc) and compound your trading account faster, and earn more while you do so.
Is trading your full-time job, or do you make money another way too?
Right now trading is my full-time job.
What, in your opinion, is the best way to learn forex if you’re starting from scratch?
The best way, if possible, is to look for someone you know who is profitable with a proven track record, and ask them to mentor you. Which is hard. Today there are a lot of gurus and educators, who are not really trading and are just marketing salesmen. So if you don't know anyone in real life who has that kind of experience, like myself, you will have to spend a lot of time backtesting and researching your ideas to see if they have an edge. Test your strategies, for 100, 300, 1000 setups. Try to make your system the most "mechanic" possible in terms of entry criteria so you can test multiple TP, SL, Maximum Favorable Execution, Maximum Adverse Execution, Expectancy, Win %, and so on.
Here's how to find a forex mentor>>
In your opinion, what are the essential elements of a good trading plan?
The essential is to have an edge in the market, which means a strategy with positive expectancy proven in X amount of time, good risk management, and finally good and strong psychology to follow your plan, and execute said edge, which is the most difficult thing I believe.
How do you know when to quit your day job to trade full time? We investigate here>>
If you could only give traders three pieces of advice, what would they be and why?
Backtest and develop a strategy with an edge in the market, because that is your "sword". Develop good risk management because that will be your "shield." This includes good risk-reward setups, correct position sizing for an account and expected drawdown, no "all-ins", avoiding FOMO, all the mistakes greed would bring. And finally, focus on your psychology because that will be 80%. Most of the technicals can be taught quickly. But it's the experience to read the market, to avoid FOMO, to avoid taking profits early, to avoid not sticking to your SL, and so on.
Why do you think such a large percentage of traders consistently lose money in the markets?
Most don't have the right education and mentality. You are trading against institutions, algos, professional traders, all of them with probably much more capital and resources. If you don't treat it with respect and professionally, it won't work. You have to track your stats, performance, develop an edge, like in a real business. If you treat it like a hobby or casino, the market will reward you in the same way.
Got more questions about trading with BluFX? Visit our BluFX FAQs page.
Did you think the BluFX opportunity was too good to be true when you first came across it - and if so what made you take the next step?
I did. Subscribing for a live account, without any prior track record or examination was strange, indeed "too good to be true". But I did saw good reviews and people getting paid, so I decided to try it out. And fortunately, I did, because BluFX proved a very serious company. Always paying on time, great flexibility for their traders. The ability to pause the account with the same balance at the end of the cycle, the ability to hold trades between news, the refinance, great customer support. I think it's one of the best prop trading firms there is. The only con for me is if you don't reach your target and are positive for the month, you can't withdraw or even pay your next subscription with that amount. But there are A LOT more pros than cons. I hope to continue to see them grow and work with them for the future.
Interested in joining BluFX but got some questions first? Read our blog, 5 BluFX Myths Debunked.
What’s been your biggest lesson so far being a BluFX trader?
My biggest lesson was to let my trades run and trust and execute my analysis until the end. Also, that leverage is not that important, it's quality setups.