Can you please start by introducing yourself: your age, occupation and what you enjoy doing in your spare time?

My name is Stanislav Pondev. I am 37 years old and I work as a capital markets analyst for a Forex broker in Bulgaria. In my spare time I enjoy travelling, attending sporting events, concerts, cinema and theatre. I also exercise and stay fit to keep a healthy body and mind.

How long have you been trading currencies?

I have been trading currencies since 2001- a little under 10 years.

How many hours a day do you spend trading currency?

I usually watch the market from 7 a.m. local time, which is GMT+2 or CET+1, EST+7 until 6 p.m., or three hours into the US trading session. If I expect a trade to set up after that, I watch the market until the end of the US trading session. I never leave open positions unattended, but instead always establish “stop loss” and “take profit” orders, which I adjust according to market volatility, important news announcements, etc. I have a strict sequence of conditions that need to be met in order for me to take a trade. So, some days I will not trade if there are no set-ups.

Describe your best trade: which currency pair, why you placed it, and how much profit did you make?

I trade intraday and place stops and take profit orders based on market volatility. I have a proprietary method of determining that and I have not seen anyone else use it. I only trade GBPUSD and EURUSD. I have made several exceptional trades with a 20 pips stop loss and a take profit of 160 to 210 pips. My best trade was on EURUSD a few months ago where I left the position open over the weekend expecting the market to gap up in my direction, and it did - the gap was 200 pips and I made over 300 pips in profit.

What was your biggest mistake ever?

Opening a trade at the top of a trading range against strong resistance with no stop loss. I got burned badly and it took me 2 months to recover my lost capital.

What lessons have you learned that have helped you find profitable trades and keep losses relatively small?

I have tried hundreds of indicators and strategies, some I paid for and some freely shared on different internet forums. I have read more than a hundred technical and fundamental analysis books in search of the holy grail of trading. I traded for years with mixed results and have been on the verge of giving up trading forever many times. I only started getting consistently profitable results when I decided to use what I thought was the most reliable method for trading the financial markets. I traded it for quite some time on demo accounts, which taught me a lot of little hidden secrets.

What do you feel new traders should focus upon?

Currency correlation and risk management are crucial for long term success. I would advise new traders to use no more than 1:5 leverage on real accounts, i.e. for every $1000 account balance, open 0.05 lots. Start trading real money only after having tripled a demo account twice in a row. Always try to choose the strongest or weakest currency when opening trades.

What about how you trade separates you from other strategy providers?

I use proprietary indicators and a method that is constantly adjusted to market volatility because fundamental and technical analysis often contradict each other.

In your opinion, what is the most successful approach to Forex trading?

There is absolutely no doubt in my mind that technical analysis is the way to go.

What do you think people should look for when deciding whether a strategy is worthy of being used when trading with real money?

The strategy needs to have a record of at least 120 trades and 6 months, a smooth equity curve and good ROI versus drawdown ratio. The T-score that Tradency uses is a very good measure of the reliability of a strategy. I would also advise people to look at the length of a strategy’s official record.

Tell us a bit about yourself. Where do you live? What do you do for a living, etc…?

I was born in Chengdu City, in the Sichuan Province. I studied accounting and financial management in university. I started working on the Forex market ten years ago when I graduated from university.

How did you start trading Forex? What role does trading play in your life now?

I started trading Forex in 1998, having been introduced by others who were trading. I was told that I could earn money by trading online, so I opened my first live account with FXCM. Now, trading Forex takes up over half my time.

How did you learn to trade?

By reading hundreds of financial books, practicing to hone my trading skills and testing out the theory in practice. So basically it’s been ten years experience trading combined with lots of theoretical study, review, etc. There’s no way I could have known how tough it would be.

What are some of your good and bad memories of your early trading days?

Same types of experiences as others who trade Forex. Big losses, doubt, overcoming doubt…all in one day. But that’s all over now. I have passed through all the obstacles that are set out for the rookies.

What do you consider crucial when developing a Forex trading strategy?

Controlling risk.

What do you think people should look for when deciding if a strategy is worthy of being used when trading with real money?

You need to choose a strategy that can control risk and achieve stable returns.

What, in your opinion, are the biggest mistakes beginning traders make when entering the Forex market?

They push themselves too hard and go in too heavy - you need to be patient.

When do you get out of the market when you’re wrong? Where’s your stop loss?

I wait until the market breaks through the support and resistance points. Regarding stop losses, I set them differently for different pairs- but usually between 100-300 pips. When the market has gone against me, I won’t add any positions so as to make sure the client can take the loss.

How would you describe your trading technique/strategy in general terms?

1. Don’t go in too heavy.

2. Try not to enter the market at unfavorable entry points.

3. Be strict with stop losses so that the client won’t suffer a big loss.

4. Trade the short term and just try to pick up some pips for the clients.

5. Trade the market trend.

6. Pursue stable profit.

What have you learned so far about trading the FX market? What changes might you make in the future?

I have learned that the market is always right. You have to trade by following the market trend and make your trading plan according to the market change. And be patient, control your emotions, overcome your weakness. And cherish the present, because the future is unpredictable.

How do you improve your forex trading skills?

For me, it’s been ten years of study and practice. You have to take in everything and then decide which is the best way to trade. I study the market every day, every minute. Never be satisfied with where you are, there’s always room to improve.

Could you tell us a little bit about yourself?

I have been trading for over 30 years. In the past I worked for banks and financial institutions. Today I teach and work as a trader.

How did you become involved in the Forex world?

In 1981, I started working in a bank and was exposed to the Forex market. Since then, I have been trading not only Forex, but futures and stocks as well.

How would you say you got your “Forex” education?

From the bank's materials and teaching myself along the way.

What is the one biggest lesson that you have learned since starting trading?

You need to be mentally strong and self-disciplined. My motto is: act and don't react!

Do you have any preference on the currency pairs you trade?

My preferred currency pairs are: AUDJPY, AUSUSD, EURJPY, USDJPY, GBPUSD, GBPJPY, CADJPY, NZDJPY, EURUSD, USDCAD and EURGBP. You can find all these currency pairs with my strategy: Tactico.

Do you prefer to use technical or fundamental analysis, or both?

I don't have a specific answer for this question because each trade has its own properties. So no, I don't have a specific indicator.

What are your personal thoughts on how the financial crisis is affecting the Forex market?

This answer will have to be brief because I can't summarize it in one sentence: but basically the market has become more volatile and unpredictable.

What are the biggest obstacles that traders face today?

Not only today, but always, they let their emotions control them.

Do you believe that trading is for everybody?

Absolutely not.

What would you say to all those traders out there who have just opened an account and are making their first trades?