Hello, fellow traders,
My name is Michael, and I’m a six-figure trader with many of the popular prop firms. While I could provide screenshots and statements, those can be easily faked—so instead, I’ll let my writing reflect my experience.
This guide is written for my younger self—more specifically, the version of me from ten years ago who had just started trading and found everything confusing and overwhelming. These are the lessons I wish someone had shared with me. Had I known them earlier, I would have saved a significant amount of money on blown accounts (both personal and prop), avoided frustration, and drastically reduced the time it took to become profitable. If I had read what you’re about to read, I could have reached consistency with just 10% of the effort.
I could write endlessly about this topic, but I’ll keep it concise while ensuring every point is clearly explained.
1. 99% of trading education is garbage.
Almost all the content you’ve encountered—books, courses, and mentorship programs—is useless. The trading industry is saturated with scammers, fake gurus, and misleading information.
I often meet traders at coffee shops or events who tell me they’ve read 20 trading books and completed 30 courses, yet they still aren’t profitable. When I ask them basic questions—such as where they conduct their NASDAQ technical analysis—they show me a CFD contract on an M15 chart.
I don’t want to sound harsh, but if you’re conducting technical analysis for a futures contract on a CFD basis using a low timeframe, you deserve to lose. That chart isn’t real—it’s meant to replicate the actual chart, but it has different wicks, gaps, closes, and fair value gaps (FVGs). Despite years of studying, many traders never even learn this simple yet critical distinction.
Some will argue, “But my mentor is profitable using this method.” Reality check: 99% of trading mentors are fake. They aren’t successful traders—they’re just skilled public speakers who make their material sound valuable. They use words that resonate with you, but they aren’t actually making money from trading. I’ve joined chatrooms and live sessions with tens of thousands of viewers, and within three minutes, I can tell when the so-called expert doesn’t truly understand the market.
There are very few legitimate traders who teach purely to share knowledge—Tom Hougaard and Michael Huddleston are among them. However, you’ll never be able to fully replicate their approach. They aren’t widely recognized because they aren’t polished public speakers, and in today’s world, charismatic speakers often receive more recognition than true specialists.
Key takeaway:
Most trading books and mentors are fake—no matter how convincing they seem. The truly profitable traders remain private and avoid unnecessary attention. Stop reading generic trading books and following self-proclaimed gurus. Instead, study Tom Hougaard and Michael Huddleston—they provide everything you need for free on YouTube and Telegram. But be prepared to put in the work. If you expect to build an above-average income with minimal effort in just a month, you’ll become another victim of the 90-90-90 rule (90% of traders lose 90% of their capital within 90 days).
2. The market is rigged.
I’ll prove it in a few sentences.
Next time there’s a FED meeting, watch the market during the first five seconds when Jerome Powell says, “Good morning.” Instantly, price can shoot up or drop 1,000 points. Do you really think “Good morning” caused that? Think about it.
Now, consider exchange rates. Do you honestly believe the U.S. or EU allows their currency to free-float? Here’s an example:
The U.S. military needs to buy $1 billion worth of equipment from Asia today. Would they allow private traders or banks to weaken the dollar to the point where the transaction becomes significantly more expensive? Of course not. Exchange rates are critical for economic stability and national security—they can’t be left to fluctuate randomly.
If you think currency manipulation is unethical, understand that it’s not—it’s a necessity. Uncontrolled exchange rate fluctuations would pose serious risks to financial stability. This has always happened throughout history, and it will continue.
Now, let’s talk about financial news. There’s no such thing. What we see are merely “justifications” for market moves.
Example: After a sharp drop in equities, the financial press will publish headlines like:
“Markets plunged today as [X event] sparked fear among investors.”
But here’s the truth: The market operates on pre-set algorithms dictating where price will move each day. When price needs to reach a level quickly, high-impact news (red-folder events) serves as a cover for manual intervention.
Key takeaway:
There is no such thing as “buying pressure” or “selling pressure.” The market isn’t free. You will never fully understand the automation behind price movements—nor should you try, as manual intervention constantly alters it.
Instead, focus on risk management. There is no such thing as a 100% success rate in trading. Never risk your account on a single trade, as you never know when manipulation will occur.
3. There is no fair chance.
Traders often assume price can only move up or down, meaning they have a 50% chance of winning.
Wrong.
If trading were truly a 50/50 game, how do 90% of traders still lose? Think about it.
Your Take Profit (TP) always counts for less, while your Stop Loss (SL) always counts for more due to spreads, commissions, and execution costs.
Example:
You enter EUR/USD long with a 200-point TP and 200-point SL.
Because of fees and spread, your TP is slightly smaller, and your SL is slightly larger—so your real win rate isn’t 50/50. It’s more like 48% TP vs. 52% SL.
Now, let’s discuss risk-reward ratios.
Most online trading advice promotes positive asymmetric risk-reward, like risking $100 to make $500 (1:5 RR). It sounds great—until you realize this is exactly how casinos operate.
If you trade with tight stop losses, you’re doing the same thing as a gambler betting on a low-probability jackpot.
Example:
You go long on EUR/USD with a 100-point SL and 200-point TP.
Even if you correctly predict the direction, the price might hit your SL first and then go your way. You were right, but you still lost. Sound familiar?
When you use a tight SL, you aren’t just predicting direction—you’re also predicting that price will move in your favor immediately without any retracement. Your win rate drops from 50% to around 5%.
Key takeaway:
Don’t sabotage yourself with tiny stop losses and extreme risk-reward ratios. Beginners should start with a 1:1 RR before exploring more advanced methods.
4. The solution to emotional trading: A daily limit.
The market is designed to exploit human psychology.
Ever feel like the price targets your stop loss, reverses right after you enter, and then moves in your original direction? That’s not a coincidence—it’s how algorithms are programmed.
To combat emotional trading, set strict daily rules:
- Trade only four times per week, with a maximum of one trade per day.
- Use pending orders only. Let the price come to you—never chase.
- Never interfere with a trade. No closing early, no reversing, no moving SL/TP.
Key takeaway:
Limit yourself to one trade per day, focus on two charts maximum, use pending orders only, and never modify trades once placed.
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Please do me a favor: Buy a small challenge or start on a demo account and apply these rules. Then come back and comment if you have any questions.
I could go on and on about these topics and trading in general, but I promised to keep it brief.
And before you ask—I don’t offer mentorship. I don’t teach. But I’ll answer what I can here for free.
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