I've been looking into trading since the beginning of year but still in the process of creating a profitable strategy, in the meantime I've been researching technical tools and trying to understand how the trading industry operates, however this thread is not about me. I really like to hear your views about a friend of mine called Michael who is a trader.
Here is the key points about Michael’s trading style
1) Michael practised on demo account for 3 months (Jan-March)
2) Opened a real account end of march with a deposit of £8,000 (11,207euros)
3) doesn’t use technical or fundamental analysis (didn’t even know candlesticks existed)
4) He takes trades purely on gut feeling, doesn’t use stop loss or take profit
5) He still doesn’t know till now that you can go short with trades, he only goes long
6) Only trades commodities and indices as he believes that the profit margin in forex is not worth it. he keeps trades open from 1hr to up to 3-4 days
7) Michael Is only 18. His made over 150 trades, only made a loss once
8) He has a quick look on the 1hr chart, 4hr and daily chart and goes long if he believes it will go up
Michaels balance as from todays date is……. £99,000. 140,000euros. from just 8 months of trading...
To be honest I am totally confused how Michael is making profits...
would appreciate your views