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Tell us some things about you. How long have you been trading, and how did you get started?
My name is Andreas Klampfl, and I am known in social media circles under the name Traderlife.
I’ve been involved in trading since 2015, initially as a side pursuit, before transitioning to full-time evaluation trading in 2019. Altogether, I have nine years of trading experience.
I initially started trading because I wanted to earn extra money alongside my education during my youth.
At first, I sold insurance policies, but the insurance director informed me that the real profit wasn’t in selling policies, but rather in investing customer funds in the stock market.
So, I decided to stop selling insurance and began trading directly, initially using my own funds with brokers.
What trading styles or strategies have resonated most with you over time?
I’d like to provide insight into my trading style, which is a combination of various approaches.
Fundamental data plays a significant role, complemented by techniques such as stop hunting and liquidity trading.
The choice of trading times and the timing of trades are also important factors, but the crucial aspect of my strategy is market experience.
It’s important to note that no strategy, especially in the technical realm, is sustainable in the long term.
Even though extensive backtesting offers valuable insights, it cannot predict the future.
This uncertainty underscores the importance of market experience and adaptability in an ever-changing market environment.
Therefore, for me, accumulating market experience and learning trading as a skill is much more important, but that takes time.
What are some of the biggest wins and losses you’ve experienced, and what did you learn from them?
One of my most significant wins occurred when I made over $50,000 in profit within a month, achieved with a $600K account comprised of three $200K accounts.
This success marked one of my best performances at Funded Engineer.
However, one of my biggest lessons came from a significant loss. Despite being up $7,000 in profit at one point, I failed to cash out.
Consequently, I not only lost that profit but also my old large simulated funded account with a capitalization of $500K.
Reflecting on this experience, I’ve learned the importance of being content with smaller, consistent gains rather than chasing large payouts.
Preserving the funded account should always take precedence over the pursuit of big wins.
If you could share one trading experience that completely changed your approach to the market, what would it be?
One trading experience that profoundly altered my approach to the market was realizing the importance of not just focusing on wins but also on losses.
I came to understand that it’s crucial to continuously manage and limit losses.
This shift in perspective occurred when I faced a significant drawdown due to a series of unexpected market events.
Instead of dwelling solely on the wins, I began to prioritize analyzing and mitigating losses.
This experience taught me that consistent risk management and minimizing losses are paramount for long-term success in trading.
How do you manage your emotions while trading, especially during periods of loss?
Managing emotions while trading, especially during periods of loss, is essential for maintaining discipline and making rational decisions.
Over time, I’ve learned to detach myself from emotional responses to losses.
I approach trading with a mindset akin to that of a robot, devoid of emotions.
Understanding that losses are an inherent part of the trading game has helped me become indifferent to them.
Instead of being emotionally affected by losses, I focus on executing my trading strategy with precision.
I firmly believe that losses are inevitable in trading and should be accepted as such.
The key is to limit losses and not allow them to spiral out of control.
This is where the art of trading lies – in effectively managing risk and sticking to predetermined stop-loss levels.
By maintaining discipline and following a systematic approach, I can navigate through periods of loss without being swayed by emotions.
It’s crucial to emphasize that emotions have no place in trading, as they can wreak havoc on decision-making.
As I often say, “Success is not built on outcome; success is built on process.”
This mantra underscores the importance of focusing on the trading process rather than fixating on individual outcomes.
Perfection isn’t the goal; instead, it’s about consistently executing a well-defined trading strategy.
Having emotions while trading only serves to cloud judgment and lead to impulsive actions.
By maintaining a disciplined and emotionless approach, traders can better adhere to their strategies and effectively manage risk.
Remembering that success in trading is rooted in a sound process helps me stay grounded and focused, regardless of the outcome of individual trades.
How do you handle the pressure of potentially large profits or losses?
Handling the pressure of potentially large profits or losses involves shifting focus away from raw numbers, especially when dealing with substantial account sizes.
Instead, I recommend concentrating on percentages.
This approach not only mitigates the psychological impact but also provides a clearer perspective on the situation, making it easier to devise a solution.
Continuing to trade my system remains paramount regardless of market conditions.
During drawdowns, I may opt to trade with smaller percentages to manage risk effectively.
Conversely, when experiencing significant profits, it’s essential to resist the temptation to keep pushing for more and instead consider cashing out and being content with the gains.
By adopting this mindset and approach, traders can alleviate the pressure associated with large profits or losses and maintain a disciplined and rational stance in their trading endeavors.
What’s the biggest myth traders believe about trading, and how does reality differ?
One of the biggest myths traders believe about trading is that it’s a quick path to overnight wealth.
In reality, trading is a lengthy process that resembles a sprint rather than a marathon.
Contrary to popular portrayals on social media, success in trading doesn’t happen overnight.
It’s not an easy endeavor but one of the most challenging professions one can pursue.
Learning to trade proficiently takes years of dedication and practice, much like mastering any other skill.
Just as a pilot doesn’t become proficient after a few months of training, traders need several years to truly understand the complexities of the market and refine their strategies.
Another misconception is that social media platforms can teach you everything you need to know about trading.
However, the reality is that while social media can provide some insights, it’s crucial to seek guidance from a reputable mentor or source with real-world experience.
Ultimately, trading is a demanding journey that requires patience, resilience, and continuous learning.
It’s essential to approach it with the understanding that success comes through dedication and hard work over an extended period, rather than through quick fixes or shortcuts.
What advice would you give to traders looking to achieve similar success?
My advice to traders aiming for similar success is to stay committed and never give up.
Shift your focus from obsessing over profits to concentrating on the process itself.
Success in trading comes when you prioritize mastering the craft rather than solely chasing monetary gains.
Additionally, don’t just stick to theoretical knowledge.
Actively engage in the market by executing numerous trades.
Practical experience and market exposure are invaluable for honing your skills and developing a deep understanding of market dynamics.
Remember, consistency and perseverance are key.
Embrace the journey of learning and adapting to the ever-changing market conditions.
By staying dedicated and continually refining your approach, success in trading is within reach.
