Like any trader, Mohammad A. in the United Arab Emirates has seen good days and bad. Since earning a Funded Account®, however, Mohammad has put together some impressives stats. In 13 days trading live with our capital, Mohammad has already withdrawn $4,000 in profits.
But that doesn’t mean he has everything figured out. Mohammad’s average winning trade is slightly less than his average losing trade ($135.36 vs -$147.38) — a statistic that he will work on as he looks to improve his consistency even further.
We talked with Mohammad to find out how he managed to get off to a quick start and how he plans to keep building on his success.
TopstepTrader: Thanks for answering our questions today, Mohammad. It looks like you’ve done well recently. How did you go about it?
Mohammad: I had a very good start in my Funded Account. The market conditions were just right. But then the market changed. This week (March 19) has actually been very tough. I wasn't doing my homework seriously and thought that I could trade similar to the previous week. However, I didn’t realize that the market bias shifted, and there started to be a lot of fake trend breaks. Continuation in any direction almost disappeared.
Now, I’m adjusting my method to identify that environment quickly and have a different way to deal with it.
TopstepTrader: That does sounds tough. Did you learn anything from your struggles this week?
Mohammad: The main thing I learned is that you have to be disciplined in your success to arrive to consistency.
TopstepTrader: I’m not sure I understand what you mean.
Mohammad: It’s harder to be disciplined after a winning streak as you get arrogant and sloppy. You start to believe that you are right in your market outlook, and, if not, you will surely recover any losses. Then you make haphazard trades and lose the connection to what made you successful.
That’s one reason I joined TopstepTrader. I like the way TopstepTrader provides a disciplined environment for day traders. For instance, I like the Daily and Weekly Loss Limits, especially the Weekly one. It provides a more holistic view of your account to ensure that no losses eat a high proportion of your capital.
In the last year, I’ve tried all kinds of free trials, from “the best indicators” to the “know-it-all experienced mentor,” and I found a lot of smoke and mirrors. What I figured out is you simply have to do your homework. You need to develop a plan of how to approach the day and have a contingent plan if the first plan is proven to not work.
TopstepTrader: And what is your homework?
Mohammad: I ask myself and find answers for three main questions:
- What is the market trying to do?
- How good of a job is it doing it?
- Where are the levels that would provide low-risk setups?
Once I have the answers for each product I trade, I try to be patient after the pit session opens and find who is winning the battle. Then, I join them. I don’t have a predetermined set length of trade or place for stops. It depends on the levels identified. I will watch volume weighted average price (VWAP), look out for continuation, and watch order flow closely to find out who’s winning.
TopstepTrader: What are you working on?
Mohammad: I have rarely used trailing stops because I always place hard targets based on levels. However, I may focus on them more given the current choppy environment.
TopstepTrader: Finally, what advice do you have for someone just starting our program.
Mohammad: Keep your daily loss limit very low and increase it gradually. Focus on the homework and test to see if your plan is working rather than forcing it to work.
TopstepTrader: Thanks for sharing your thoughts today, Mohammad. It’s great to get tips from someone who learns from their successes and their setbacks.