Zulutrade to learn what not to do

i think I remember he was a bit off not to be trading on zulutrade anymore!

hey mate what happened with your review? Care to share it with us?
It would really help me!

Same here! Always great to get support on new traders! What do you say?

Dima, how are you closing the trading year, yourself?

Sorry I haven’t been around to tell about my experiences just viewing zulu. I was for awhile but then I focused more on my own strategies. My idea was to see the losing traders and how they react and it was successful in showing me how not to react to the market with drawdowns. My problem with this is that I can’t tell if the demo traders in zulu are just drawing down because they can or if they are psychologically reacting to the loss hoping to gain their money back. I also viewed some successful traders and they have one thing in common, they know not to change their stops unless a good price action indicator shows them that they should, and they also have solid exit strategies that allow them to take profit without over analyzing their wins and hoping for a higher return.

They draw down just because they can - it benefits them. All they care about is % ROI. It’s no skin off their backs to hold onto losing trades until they turn into winners, because most of them are using a demo account or small live account and only care about commission from followers. I’m sure most of them understand proper risk management, however they choose not to implement it in order to exploit the crowd psychology. The traders with the highest % ROI usually end up with the most followers, so that is all they care about.

By letting their losers run they increase short-term profitability in exchange for long-term viability. The traders know they’re going to get margin called and go bust eventually. When that happens they lose none (or very little) of their own capital. A few days later and they’re back on Zulu or another site with a different alias, starting the cycle again.

That was my first concern about this service. I thought there had to be ways for people to skew their results so others would trust in them.

Well I am sorry but first of all drawdown is inevitable when it comes to Forex you have to be sure that the positions are protected with the zuluguard, or with the offsetpips or trailing stops there are there. there are so many different ways to protect your account and make enough money in this forex following business.

Understandable Eddy. I wasn’t arguing there is no one that has drawdowns in forex. My plan wasn’t to invest in zulu at all, I’d rather trade my own money with my own strategy. That’s just me. I was just trying to use Zulu to read the psych of the traders who are involved. You can protect your account in zulu it seems, but actually gaining useful information from this instead of say a signal service provider who is well known or learning based on your own style doesn’t seem as easy. You have to admit there are a lot of traders on Zulu who just mess around trying to get their win percentages up while in a real scenario they would have gone bust.

I see. you are looking into understanding the trading psychology - the thing is that the zulutrade community does not actually aim at that type of info, more like - can he trade - yes, can I make money out of it - yes. End of Discussion. Simple as that. However, the % is their real scenario case - we see the stats and what can be actually achieved. And then follow or not. There are so many traders, with so many different strategies that we can follow - and there are always some that are winning at the moment that you get to follow until the trend is profitable,
Good luck in your manual trading!

Very true. Good luck to you in 2014!

Happy trading everyone! Let’s hope for the best this year.

I guess it’s best to find traders with little drawdown than the others and how long (on average) do they hold a trade.

Indeed, along with that, one can also work with zuluguard in order to protect his/her account!

I love concept of social trading or follow trades. Want to test but havent done so yet. I am a bit sceptical because if it was easy to find a good trader and copy them we could all become rich so I am sure the road is not so easy… but it is a great concept.

So guys, what have you learned not to do on social trading with zulturade?
my biggest lesson was to actually lower the risk margin to actually gain smaller returns but on a more steady basis.

Well, I kind of look at it like if you hang around loser’s you become one. So, the idea of learning for other’s mistakes may seem like a noble concept, but who will teach you to be awesome at trading?

The truth is most people cannot trade successfully.

No i wasn’t talking to learning from their mistakes, but actually copy their trading in a protective environment that zulutrade creates for the followers to win. That’s why it is the most profitable platform for social trading :slight_smile:

So guys, Eddy, what shall we avoid, when it comes to zulutrade? and the level of risk account management we should apply ?

well guys, imo and practice, keep your risk low and trade and low margin.
Always zuluguard (or use any other of equity level protections - stop/losses, trailing stops, reverse trades, you name it)…i think this all covers the basis to keep the risk limited both when you trade manually, or copying the strategies of the traders.