Liakot's Trading Journey

Liakot, nearing his 40s and originally a chef from East London, shared his extensive journey in forex trading, highlighting the challenges, lessons, and eventual success he experienced over approximately six years. His story reflects common struggles in trading, particularly around mindset, strategy, and risk management.

Timeline of Key Events

Core Concepts and Key Insights

• Trading Background and Motivation:
  Liakot left his career as a chef due to the demanding hours and lifestyle. Initially introduced to forex through a network marketing scheme, he quickly realized the importance of self-education and independent trading.
• Early Challenges:
• • Blew a £1,500 account early on as a beginner.
  • Raised £150k and lost it plus additional funds due to poor risk management and psychology.
  • Experienced a "roller coaster" journey with steep losses and breaks from trading.
• Mindset and Psychology:
• • Liakot emphasizes that psychology is the biggest challenge, more than strategy alone.
  • He admits rushing the learning process and overestimating readiness, especially with large capital.
  • Greed and fear of missing out (FOMO) were significant obstacles to overcome.
  • Recovering mindset and trauma from losses took about one year.
• Trading Strategy:
• • Uses a trend-following strategy with a semi-automated system signalling potential large moves.
  • Trades primarily on the 4-hour timeframe and waits for pullbacks aligned with higher timeframe trends.
  • Employs about 12 indicators with 7-8 confirmations focused on market structure, volume, and multi-timeframe analysis.
  • Strategy is adaptable to various currency pairs and assets, not limited to specific pairs.
  • Emphasizes strict adherence to entry, exit, and risk management rules to avoid losses.
• Risk Management and Account Handling:
• • Currently manages multiple accounts: personal, prop firm (Audacity), and challenge accounts.
  • Adjusts position sizing and leverage according to account size but keeps the same strategy intact.
  • Uses a weekly risk threshold (e.g max £500 risk) to control losses and aims for consistent weekly profits.
  • Highlights the importance of proper lot size and leverage to avoid "blowing" accounts quickly.
• Role of Prop Firm and Support:
• • Found working with Audacity prop firm beneficial due to their risk parameters, leverage control, and educational support.
  • Appreciates commission-free, no swap, and risk management tools provided by Audacity.
  • Values the automatic news filters that prevent trading during high-impact events, protecting accounts from volatility spikes.
• News and Fundamental Impact:
• • His trend-following system is less affected by fundamentals but acknowledges that high-impact news can cause unpredictable price spikes.
  • Recommends avoiding trading during news releases and instead trading post-news when volatility decreases.

Advice for New Traders

• Follow the right process: Starting with professional guidance, education, and mentorship is critical to avoid common pitfalls.
• Avoid rushing: Building psychology, strategy, and risk management skills takes time. Patience is essential.
• Use credible services: Choose reputable brokers or prop firms offering proper risk controls and educational resources.
• Beware of information overload: There is an abundance of trading advice, much of it misleading. Filter information carefully and focus on trusted sources.
• Psychology over strategy: Success depends more on mindset and discipline than on having the perfect strategy.
• Stick to your system: Consistency in following your trading plan leads to better results.

Key Takeaways

• Liakot’s journey illustrates the importance of trading psychology and risk management over pure strategy.
• Proper education, mentorship, and professional support platforms like Audacity improve the chances of success.
• Adopting a structured, rule-based approach and avoiding impulsive trades is essential for sustainable growth.
• Managing leverage and position sizing relative to account size prevents catastrophic losses.
• Avoiding high-impact news events reduces risk from unpredictable market spikes.

Quantitative Details

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