Before learning how to trade with TopstepTrader, Gabriel, who’s based in Spain, was an entrepreneur who ran multiple businesses. He heard an ad detailing how trading newbies could learn the business and decided to give it a try.
2019 has seen a couple new funded traders get off to red-hot starts. We talked a couple weeks ago about how Gabriel F. in Spain added $26,000 in profits in 33 trading days.
But it's not just Gabriel that has been able to add big profits to his trading account recently. Bill M. in Illinois gained nearly $27,000 in profits in his Funded Account® over 46 trading days. And their two trading styles could not be less alike, proving that you can make money in a multitude of different ways.
Whereas Gabriel sticks with Crude Oil and equity futures, Bill trades anything and everything. He's held positions in currencies (Australian Dollar, British Pound), metals (Copper, Gold), energies (Crude Oil, Natural Gas), agriculture products (Live Cattle), financials (Ultra Bond) and equities (Dow, Nasdaq, S&P 500, Nikkei).
Also different: their reward-to-risk ratios. Gabriel had a perfect 2:1 reward-to-risk ratio; Bill's average winning trade is actually less than his average losing trade (+$471.82 vs -$571.65). To stay profitable, Bill has nearly 70% winning trades and 57% winning days. And, critically, he never loses too much on any one day — his largest winning day is $4,776 vs. a largest losing day of $1,550.
Here's a closer look at Bill's equity curve, which is a beautiful lower left to upper right pattern.
44.66% winning trades.
Average winning trade of $511.79.
Average losing trade of $263.90.
These statistics may not seem remarkable, but disciplined trading compounds in a very short amount of time. These are stats from Gabriel F., a funded trader in Spain. Gabriel accumulated $26,266 in profits over 33 trading days since November 1 in his Funded Account®.
Here's what Gabriel is doing so well right now.
Why have we been saying that markets right now are full of opportunities? Because volatility plus risk management can equal big profits. Take just one example, Jacob B. in Utah, who started in his TopstepTrader Funded Account® on October 1 and amassed a healthy amount of profits and a $7,000 withdrawal check by the end of the month.
What can you learn from how Jacob managed his account and took advantage of what the market gave him?
Some people start trading because of the allure of big profits. That is not the case for Brian G. of Brisbane, Australia. He says he was drawn to the markets for a different reason entirely: for the challenge. “Trading is difficult,” he says. “And like most things in life the greater the complexity the greater the reward.”
Brian has faced the challenge of trading head on. For example, though he has amassed profits to withdraw more than $1,100 in his first 25 trading days, he is still working on improving his risk-to-reward ratio. That’s because he’s found himself giving away more on his losing trades than he makes on his winning trades. On his average winning trade, Brian makes $197.46. But he risks $217.58 on his average losing trade.
Brian is constantly learning how to navigate the intricacies of the markets he trades — Nasdaq, E-mini S&P 500 and Russell 2000 futures. Let’s take a look at some of the lessons he’s learned.
Some people think traders need to grind it out all day, every day. Not Chi C. of Bellevue, Washington. He never wanted to be one of those people who trades all day, every day, so he developed a strategy that fit his way of thinking and had the potential to give him the financial freedom and flexibility he was looking for.
In many ways, Chi is well on his path to success. He only trades Crude Oil ($CL) its volatility allows him to capitalize on a short trading window, just trying to be active in the market between 6 AM and 9 AM PT. Even then, he says he usually finishes his trading day by 7:30 AM.
In more than two months in a Funded Account®, Chi averages nearly $200 each day he trades (winning and losing days included). To put that in perspective, that’s $50,000 annually — working just three hours!
Here’s how he did it.
Have you heard the news? TopstepTrader has funded 500+ futures traders SINCE JANUARY!
That's a pace of funding that we've never seen before, thanks to market volatility and more traders than ever interested in trading our capital. And it has enabled stories like Mykhalio in the Ukraine, who put up our largest trading day ever yesterday, profiting $8,100 in Crude Oil.
But TopstepTrader's success is not just about the traders now earning funding. We continue to fund profitable traders like Charles B., who has been trading with TopstepTrader since November 2015.
To commemorate the occasion, TopstepTrader's Founder and CVO Michael Patak joined CEO Jay Rudman to go over some of the highlights and talk with the community. Check out the video below.
Metrics can be a lifesaver for a trader. Without a way to evaluate your strategy, each trade is little more than a roll of the dice. Yes, there’s an element of chance in the markets. But you can’t depend on things going your way if you want to be consistently profitable.
Certainly there are a lot of metrics that are interrelated that will ultimately bleed into the bottom line. But, as we have talked about in the past, if you are only focused on your bottom line, you are going to have a tough time trading.
So what’s the best metric to look at? The risk-to-reward ratio. Broken down, this tells you how much you lose on an average losing trade versus how much you gain on an average winning trade. Other metrics, like your net profit / loss, may make your feel good, but your risk-to-reward gives you information you can use to actually get and sustain that healthy account balance. Here’s how.
TopstepTrader’s mission is to empower anyone to earn the financial freedom to pursue their dreams. That’s a lofty goal – but it’s about providing opportunity. It's up to individual traders to earn the results.
As we’ve said 1,000,000 times, trading is about money management. If you are looking for a vault of gold or to ditch your full-time job within months, you are (probably) looking in the wrong industry. Instead, if you are looking to regain some of your freedom and to spend your day doing something you are more passionate about, then you have the right attitude to succeed.
Work hard and take these five steps towards trading your way to financial freedom.
We recently discussed how sim trading is the secret to trading success. But you can’t stay in the virtual world forever — not if you hope to make money as a trader. So how can you know it’s time to start trading for real?
The key is consistency. In simulated trading, you get the practice you need to turn your actions into routine. The more your actions become routine, the better chance you have of responding to pressure in a positive way.
It’s a lot like what an elite athlete does. Take, for example, LeBron James hitting a last-second shot to win a playoff game. He makes the basket as easily as if he’s in his backyard.
You’re not working on your three pointer when you’re sim trading, but you are practicing the habits of a successful trader. Here are the five key habits you have to develop before you trade live capital.