Este trader en 2019 era el MEJOR de todos y en 5 años lo ha perdido todo por esto...

Summary

This video script narrates the rise and fall of a trader, known as 'High Five' (HFD), who once managed 7 million euros and achieved remarkable results, including a 190% return on Darwinex. The trader's downfall began with a series of risky trades and a loss of risk management discipline, culminating in a complete account breakdown. The script serves as a cautionary tale about the complexities of trading, the importance of consistent strategy adaptation, and the psychological challenges faced by traders, emphasizing the need for humility, ongoing learning, and not relying solely on trading for income.

Takeaways

• 📈 The trader's recovery was abrupt and marked by increased leverage and risk-taking, aiming to reach new highs as quickly as possible.
• 🤔 The trader's mindset shifted from following a trading system to desperately wanting to win and escape psychological torment after significant gains and losses.
• 📊 The trader's performance was analyzed over a period from 2019 to 2024, showing a significant downfall after achieving impressive results initially.
• 💰 The trader managed to generate a 190% return on a Darwin investment and had a controlled drawdown of nearly 10%, indicating good risk management initially.
• 📉 Despite previous success, the trader eventually broke down, with a -35% drawdown in the Darwin and a near 100% loss in their personal account.
• 📉 The trader's downfall began with a series of uncontrolled negative excursions, indicating a loss of proper risk management.
• 🧐 The video emphasizes the complexity of trading, highlighting that good results over a period do not guarantee long-term success.
• 🚫 The video warns against complacency and the belief in a one-time strategy that can be applied indefinitely in trading.
• 💡 The importance of daily updates and adaptability in trading is stressed, as market conditions can change rapidly, rendering previous strategies ineffective.
• 🤝 The video uses the trader's experience as a cautionary tale to remind viewers of the need for continuous effort and the potential pitfalls of psychological biases in trading.
• 🌐 Darwinex is mentioned as a platform that provides tools for traders to analyze their performance and manage risk, offering a discount for new users.

Q & A

What was the trader's initial recovery like after a significant drawdown?

The trader's recovery was abrupt, indicating a quick return to taking on more leverage and increasing the number of trades. This was likely driven by a desire to return to previous highs as quickly as possible, which led to a significant increase in risk.

What was the trader's mindset during the period of letting profits run without much thought?

During this period, the trader was not focused on disciplined trading or following a system. Instead, the primary goal was to win and recover from the psychological torment, even achieving a profit of 56% at one point.

How did the trader's monthly earnings evolve from 2019 to 2020?

In 2019, the trader was consistently earning significant amounts, such as 12,000 in March, 13,000 in April, and up to 37,000 in December. However, by 2020, the earnings dropped significantly, reflecting a change in trading performance.

What was the trader's initial trading performance like before the decline?

Before the decline, the trader was managing 7 million euros, achieving a 190% return on the Darwin platform, with a controlled drawdown of nearly 10%. The trader was known for letting profits run and had a good risk management strategy.

What was the trader's performance in the years leading up to the decline?

The trader had a strong performance from 2017 to 2019, with a 30% return in the first year, over 40% in the second year, and 63% in 2019. The trader was consistently profitable and was considered a top performer.

How did the trader's risk management change during the decline?

The trader's risk management deteriorated significantly during the decline. There was a radical change in behavior, with the trader taking on more risk, increasing leverage, and opening more trades in an attempt to recover quickly.

What was the trader's final outcome after the decline?

The trader ultimately broke, with a drawdown reaching -35% on the Darwin platform. The trader stopped operating in 2023, and the account was eventually broken, with nearly a 100% loss.

How did the trader's leverage and number of trades change during the recovery period?

During the recovery period, the trader increased both the leverage and the number of trades. This aggressive approach was aimed at quickly regaining the previous highs, but it also increased the risk significantly.

What psychological factors might have contributed to the trader's downfall?

The trader likely experienced overconfidence and a desire to quickly recover from the psychological torment of previous losses. This led to a reckless trading approach, increasing the risk and ultimately contributing to the downfall.

What advice does the video script provide to traders based on this trader's experience?

The script advises traders to maintain a constant state of work and not to rely solely on past success. It emphasizes the importance of adapting to market changes and maintaining a disciplined approach to trading and risk management.