About this Video

• Video Title: #1 FTMO Trader Exposes Myth About Trading Psychology
• Channel: Words of Rizdom
• Speakers: Riz, Bernd Skorupinski
• Duration: 01:28:30

Introduction

This podcast interview features Bernd Skorupinski, a record-holding FTMO trader, discussing various aspects of prop trading, including the challenges of the industry, choosing the right trading plan, the importance of consistency, and the psychological aspects of trading. The conversation also touches upon the differences between various trading styles and the misleading nature of some marketing practices within the prop firm space.

Key Takeaways

• The Prop Firm Landscape: The prop trading industry has seen a surge in firms with questionable practices, lacking cash reserves and proper regulation. Many are run by individuals with limited experience, creating risks for traders.
• Building a Trading Edge: A trading edge is not self-taught; it requires learning from experienced, consistently profitable traders. Building an edge involves developing a consistent strategy (technical, fundamental, or combined), mastering risk management (e.g., fixed dollar risk), and achieving consistent returns (e.g., two risk-reward ratios per month).
• Consistency and Scalability: True trading consistency is continuous and requires constant adaptation as capital scales. Over-scaling too quickly can create psychological barriers. Milestone planning—gradually increasing risk levels after achieving consistent results—is recommended.
• Time Management and Trading: Profitable trading doesn't necessitate constant screen time. A well-defined strategy allows for more hands-off trading, freeing up time. The focus should shift from hours spent trading to effective risk management and execution of a proven strategy.
• The Importance of Maturity: Success in trading demands maturity, allowing for rational decision-making and overcoming emotional challenges. This maturity often stems from experiences outside of trading.

Those are excellent follow-up questions, all directly answerable from the provided transcript. Let me elaborate on how the transcript answers each:

1. What specific challenges did Bernd Skorupinski encounter when starting with prop firms, and how did he overcome them?

The transcript doesn't detail specific early challenges Skorupinski faced, but it extensively discusses the general challenges of the prop firm industry, such as the low barrier to entry leading to many poorly run firms with unreliable payouts and a lack of regulation. He mentions a personal experience where a prop firm went bankrupt after he'd earned a significant profit, highlighting a key risk. He doesn't describe his personal experience in overcoming these but implies his success is built on choosing reputable firms, building his own trading edge, and focusing on consistently profitable strategies.

1. What are the key performance indicators (KPIs) that Bernd Skorupinski uses to measure the effectiveness of his trading edge?

Skorupinski highlights risk-reward ratio as a primary KPI. He specifically mentions aiming for "two risk-reward ratios per month on average," using a fixed dollar risk approach to maintain consistency. He also references win/loss ratio and other unspecified KPIs as tools for evaluating trading performance.

1. How does Bernd Skorupinski define "consistency" in trading, and what strategies does he employ to maintain consistency as he scales his trading?

Skorupinski defines consistency as his strategy delivering a consistent number of risk-reward ratios (specifically, two per month on average) regardless of the account size. His strategies for maintaining consistency while scaling involve using a fixed dollar risk approach (adjusting position sizes according to account size) and milestone planning. This involves proving his edge works at one level of risk before increasing risk to a higher level.

1. What are Bernd Skorupinski's observations regarding the misleading marketing practices of some influencers and prop firms, and what ethical concerns does he raise?

Skorupinski observes some influencers receiving funded accounts with profit caps for marketing purposes, presenting a false image of consistent profitability. He finds this misleading and unethical to traders who genuinely build their skills and edges. He argues that transparency and ethical practices that benefit traders should be prioritized over profit-driven marketing schemes.

1. Ask anything...

This is open-ended for the user.