Brief Summary
This YouTube video features an interview with Bernd Skotopinsky, a seasoned trader with over 10 years of experience, who manages over $3 million in firm capital and has significant verified payouts from FTMO. Bernd shares his journey into trading, his strategies, and his perspectives on various aspects of the trading world. Key points include his two-step approach to trading, his views on prop firms and scalping, the importance of education and mentorship, and the mindset required for consistent profitability.
- Bernd's two-step trading approach involves determining market bias through fundamental analysis and timing entries using technical analysis.
- He emphasizes the importance of personalized education and mentorship in trading.
- Bernd is critical of scalping, questioning its profitability with substantial capital and the mental pressure it entails.
Bernd's Achievements
Bernd Skotopinsky manages over $3 million in firm capital, has over 175k in verified payouts from FTMO, and dominated the leader board as number one for three consecutive months. He is the owner of the online trading campus with over 10 years of experience.
Welcome
Abdullah Rasheed welcomes Bernd Skotopinsky to the podcast, acknowledging Bernd's success with FTMO and expressing the value that prop traders and students can gain from his experience. Abdullah emphasizes the podcast's goal of showcasing real trading professionals to provide high-quality education and mentorship, which can be difficult to find amidst marketing noise. Bernd expresses his appreciation for the invitation, feeling honored to share his insights.
Upbringing In Germany
Bernd shares his background, mentioning he moved to Dubai 13 years ago from Germany. He initially had a corporate job but transitioned into full-time trading, which he has been doing for 10 years. In 2019, he established a licensed investment consultancy in Dubai, regulated by the UAE government, focusing on practical trading education.
Why provide education?
Bernd addresses the common question of why successful traders provide education. He acknowledges the skepticism in the trading space due to the lack of regulation, which allows anyone to offer trading education. Bernd draws a parallel to licensed professions like medicine and law, where educators are qualified and licensed. He explains that his initial involvement with prop trading was to establish credibility and showcase his expertise through certificates and payout proofs.
Purpose and Building a Legacy
Bernd explains that trading requires minimal time, about 15-30 minutes a day, allowing him to focus on building a legacy and helping others through his investment consultancy and trading school. He recounts a period after quitting his corporate job where he spent his days at the beach but found the lifestyle boring and purposeless. The academy provides him with a sense of purpose and the opportunity to assist others. He also notes the importance of fitness, translating discipline and consistency from the gym to trading.
Moving to Dubai
Bernd describes his traditional upbringing in Germany and his decision to break away from a narrow-minded way of life. He moved to the US to study at the University of California, Santa Barbara, which broadened his perspective on cultures. During a family vacation in Dubai in 2004, despite the city's undeveloped state at the time, he felt a strong inclination to move there, eventually leading him to pursue that goal.
Starting to Trade
Bernd discusses his transition into trading after working in a corporate job in Dubai. Coming from an entrepreneurial family in the hospitality business, he felt an entrepreneurial spirit but disliked the corporate environment. He sought ways to grow his savings and was curious about the financial markets.
How Bernd Learned Trading
Bernd explains that he sought formal education to learn how to trade. He emphasizes the importance of proper education before risking capital, contrasting it with the mindset of people who jump into trading without guidance. He learned through physical, in-person education, which was more common at the time due to less social media exposure.
Best Trade
Bernd recalls his first profitable trade in the futures market, a short position in natural gas, which earned him $468. He emphasizes his process-based approach, following a checklist and sticking to it, rather than having outlier trades.
Worst Trade
Bernd shares a story about a bad trade he made while recovering from surgery and under the influence of painkillers. He mistakenly removed the stop loss on a gold trade and lost $4,000-$5,000. This experience taught him the importance of mental stability and clarity when trading, and not to compensate for bad days with trading.
Quitting Job and Family Support
Bernd discusses his transition from corporate life to full-time trading, which took a little over a year with intense commitment and mentorship. He highlights the importance of family support, particularly from his wife, and having a financial safety net of at least one year's worth of expenses. He advises against trading paycheck to paycheck due to the added pressure.
Approach To Challenges
Bernd describes his approach to prop firm challenges, using a 2% risk per trade with a 1:1 risk-reward ratio. He mentions that he initially reduced the risk to 1% for phase two verifications but now maintains 2% due to increased confidence. He enjoys the competitive aspect of the challenges and finds them fun.
Bernd's Trading Strategy
Bernd describes his trading style as "weekly income," which the public would refer to as swing trading. His process involves two steps: first, determining market bias using three fundamental values and proprietary indicators derived from fundamentals; second, timing the market using technicals, primarily supply and demand with some price action. He emphasizes the importance of objectivity in trading and making fundamentals visible and objective on the chart.
Why Indicators Fail
Bernd expresses his dislike for conventional indicators like RSI, Bollinger Bands, and moving averages, questioning their effectiveness since many traders still lose money. He points out that these indicators are lagging because they are derived from price. Instead, he prefers using forecasting tools or hybrid AI that use past fundamental data to forecast potential moves.
One Time Frame One Market
Bernd dismisses the idea of trading only one market and one time frame as "complete BS." He argues that successful traders need to be experts in the financial market as a whole, understanding cross-market correlations. He emphasizes that everything impacts each other, citing the relationship between treasury bonds and the stock market.
Strategy Never Lose Edge
Bernd explains that his rules never lose their edge because the mechanics of the market never change. He clarifies that while the market may experience periods of choppiness or bullish runs, the underlying principles remain constant. He emphasizes that swing trading is more practical for most people due to its flexibility and that it's about quality over quantity in trading.
Scaling Your Trading Business
Bernd explains that to make more money in trading, the only variable you have to change is the funds.
Is Scalping Real Trading?
Bernd shares his controversial opinion on scalping, questioning its profitability with significant capital and the mental pressure it entails. He doubts that anyone can consistently scalp with $10,000, $20,000, or $30,000 risk and cope with the mental pressure. He believes the lower the time frame, the more erratic the market behaves, and the more prone it is to news events. Bernd calls scalping "gambling" and challenges anyone to prove him wrong.
Accountability
Bernd notes that many traders blame the rules or other factors for their failures rather than taking accountability for their skills. He emphasizes that prop firms reflect a trader's skills and that those struggling should seek proper education.
Advice To Traders
Bernd advises those undecided about prop firms to start with small challenges to get into the challenge mode of trading. He suggests that prop firms provide a "pass or fail" certificate, indicating whether one is on the right track. He emphasizes that prop firm rules are beneficial as they enforce proper money and risk management. Bernd shares that he manages $3 million across various prop firms. He advises newer traders to use common sense, be wary of promises that sound too good to be true, and understand that trading education is a process, not an event. He suggests that consistency can be achieved in about 12 months with dedicated effort.
