From IT Engineer to Trader: The Brutal Truth About My First Years! Transcript, AI Summary & Key Points

00:00 My Forex experience started with a lot of pain. >> How much do you feel the engineering background actually helped you long-term? >> Um I I was at the beginning very successful, but then I lost my account. >> Being a solutions-oriented person was one of the main things for you. >> If you're too greedy, this will not work. >> So, how do you personally figure out when you feel you should pivot and when you should just stay?

00:21 You kind of have to think about the way you trade and choose the broker according to that [music] as well. >> Yeah. Yeah, this this was was my biggest issue to find out how to make them less aggressive. >> Hi Rene. Thank you for coming to X-Chief's podcast interviews. >> [music] >> Um I'd like you to start telling a little bit about yourself and your past experiences so that new traders can learn from your from your trading experience.

00:53 >> Yeah, thank you for your invitation. Um yes, so my name is Rene Nieslony. I'm from Germany, Munich. And I'm a systems engineer. I'm 57 years old, so I'm not so young anymore. But I have around Yeah. Let's say over 10 over 10 10 to 12 years, let's say experience in trading. Uh and I started uh with Forex trading, conventional Forex trading. Um In the meanwhile, I'm also trading the crypto markets.

01:28 And uh Yes, it's it's a relative new experience for me because um Yes, I'm doing this since 2022. >> Yeah. >> Uh when the bear market was and uh I was um I had some contacts to people who were also um trading cryptos and um Well, they they inspired me to to try the same. Uh and it was not it was not trading in this in this case. It was more um investing.

01:59 >> Okay. >> And uh yes, this was this is my my background in uh uh in in in trading. And so well, my my Forex experience started uh with a lot of pain. >> That's the usual, mate. [laughter] >> Yes, yes. Well, I I started with a with with demo accounts and it looked it looked uh very good, but I I didn't have any good plan. I would say yes, I would say it like this.

02:26 And so I uh I there was one day when I started uh to trade in a in a small uh live account >> Mhm. >> with I think 250 uh euro. >> Mhm. >> And um well, this 250 euros were very fast. Uh they they they left me somehow. Yeah. And so but uh well, but this whole this whole issue was was very uh exciting for me. And uh and I wanted to learn uh more about this and I wanted to go deeper in this, yes.

02:59 >> Because you know, as this uh as engineer, you want to to go to the roots and to find things out and >> Yeah. >> And I thought, "Why is it not working? What What did I do wrong?" and so on. >> Well, how how much do you feel the engineering background actually helped you long term? >> Um I think very much because uh well, you don't have to be engineer, I think, but you but you should um you should be um you should have kind of mindset where you think uh where your thinking uh well, I I I don't I don't give up here,

03:30 yes. I I want to to find a solution for for special problem or something. >> Yeah. >> And if you um well, uh my my my job uh is a is a Linux administrator. >> Mhm. >> No, yes. I I was I was also developing software. I was working for some companies of also for for um for for um uh uh developing in in in in C programming language and so this was this were my basics and so I but I had to change one because some some changes in my in my personal life happened and so I tried to to go deeper in administration but I was

04:11 every time with computers as I started with computers when when I was let's say 12 years old or something. >> Wow, okay. Yeah, yeah, yeah. Long history. >> Yeah, yeah, yeah. >> Very long. >> So essentially what you're saying is that being a solutions-oriented person >> Yeah. >> was one of the main things for you. >> I think yes, solution-oriented and to have a kind of discipline that you can keep with things also if if you are not successful at the beginning.

04:39 This is very important because some people they they say, "Oh, I have no success. I have to I have to do something else or or this is not the right thing for me or I I have to to change." For example, for trading many people I was the same somehow yes if one one system wasn't working I I changed to the next one and so on but then I got contact to some people I would not say mentors because it there were I had several courses also in in in Forex trading and they told they told me you have to keep to something if you

05:18 also if it does not work for some time yes this is not not every time nothing works all the time and so it's also for trading. >> Yeah. Yeah, if you keep on switching all the time you'll never know which one would have actually maybe worked. >> Yes. >> Cuz you just could have gotten unlucky. >> Yeah. >> And or or lucky and then you try that again and then it fails.

05:38 So you're right there definitely. Where would you say like over these all of these years >> Mhm. >> what would be the biggest challenge or problem you faced and overcame? >> Well, biggest problems with Well, many problems in details because you can imagine if you start with a with a 250 euro life account, you think first of all, well, probably it was too less money.

06:04 You you know what comes now is so I I made a bigger account. >> Yeah. >> And I was also not not only trading manually because at the beginning it was manual trading. >> Yeah. >> And and to be honest, I had I had no real idea to trade. And this I think this is a problem many many people have because they they they see a chart and they say, oh, uh For me it was like I was trading very often Euro USD for example.

06:29 Euro USD was was for me well, I have to trade. This this was my idea. And I have to find to find a way to to trade this successfully. And but well, it worked for some time and so But when there came there came a period where where nothing worked anymore. Yes, well, there was there were probably some news or something. We had a big movement in in price and I was I was long for example, I was buying buying Euro USD.

06:57 And then then came a period when probably there were some news. I I I don't know even because it just happened and the price was falling down. >> Right. >> And I was thinking, what happened now? How How can I How can I take this challenge? >> Mhm. >> Because I had my my buy open and the buy was I'm I'm not talking from from flash crashes which which I which I had also some sometimes.

07:20 Yes, you know flash crashes you you are in a buy and then suddenly suddenly the price moves down and you you don't know what what should I do now. I'm >> Uh-huh. >> You are desperate in this moment. Yeah. >> Yeah. >> And so And well, the next step was probably from manual trading I was thinking, well, probably there's a there's a possibility to trade with with automatic systems.

07:45 >> Mhm. >> Like I I'm I'm talking from expert advisors like in MetaTrader 4, for example. This was my is my my my my base my basic for trading. My platform. And and I I tried all kinds of indicators of expert advisors. >> Mhm. >> And my opinion was well, it was working for some time. The same same experience. And then suddenly um something went went wrong and the expert advisor was trading and I was thinking what is he doing where he's he's losing all my money, yes.

08:20 And um >> [snorts] >> And there were there were really some some situations where I thought it I have a working system and then suddenly it's it's did not work anymore. >> Yeah. So that that I guess is a recurring problem really for everyone that you got to have to switch. You got to pivot. >> Yeah. Yeah. >> And it's it's hard to know when to pivot.

08:44 Because if the price just goes down for a day or two and then everything's back normal and you pivoted then that's a problem. So how do you personally figure out when you feel you should pivot and when you should just stay? >> Yeah. Um I found it out when I you know this this expert were trading very often like like a martingale system, yes. So >> Yeah.

09:09 >> So he it made wins. It made sometimes very big wins and I was sometimes also over trading. So my my leverage was high compared to my to my account size. >> Yeah. >> And this was was a very big problem and I and I was thinking but Well, I I I tried this in a demo in demo accounts and I tried with with several sizes in demo accounts and and some one one day I I was trading a very big demo account and the same thing happened again, and I lost this account, and I said, "This cannot be the solution."

09:41 Well, >> Yeah. >> uh the problem is not not at all the the size of your of your account. >> Mhm. >> It has to be something else, yes. >> Mhm. >> And um by the way, I was also developing when uh expert advisors with um um on on with a basic of of an existing system. >> Right. >> I I um I had contact to um better better to say, I had an a system. Uh it was called um uh it was called RoboFibo.

10:13 It is an an system from an from a guy from Malaysia. >> Okay. >> It was very very interesting, yes. And and then I um I I was at the beginning very successful, but then I lost my account, and I was thinking, "There has to be There has to be a solution for this." And I I was I was taking contact to this guy who was programming uh programming this uh expert advisor.

10:39 >> Yeah. >> And I asked him, um "Is it possible that that uh that you can make some changes to your to your expert? Because I I had some ideas to um uh to improve the system >> Mhm. >> and to make it less aggressive, yes, or or to make some settings where you can where you can make make your settings to optimize this whole thing." And then he was he was he was accepting this.

10:59 I was very happy. >> Yeah. >> And then and then I when was the first change to second change, I think after six or seven changes, he said, "You know, I I don't like this anymore. Uh you have a chance to buy this system now. I give you the I give you the source code." Yeah, and then and when I said, "Okay, I I will we we made an agreement." And uh I bought the source code from from him.

11:24 And when I tried to optimize the system. So, this were this were my my first step, and hard you can imagine hard work behind this yes and many many many nights and um many hours to improve this to to check it in demo accounts >> Mhm. >> to to fail again to start to start with a new account and so on and so on and with different different brokers. >> Yeah.

11:50 So it it's basically reiteration. Small change test, small change test. >> Yeah. >> And I would say that for people who aren't coders, who can't develop >> Mhm. >> the same idea still is correct. You have to make small changes, see what happens, small changes until you get something that most of the time seems to work for you. >> Yes. Yes. >> Yeah. >> But you you get you get also the I mean at the beginning you are not interested in in in margin or something as you look only on your account, you look on your trades,

12:22 but you you don't look what what can what can be um um harmful for your for your for your account, yes. >> Mhm. >> So if you if if you have too high leverage or something >> Yeah. >> uh this can be harmful. You you have to find the um the the the optimal setting for your for your account first. And what what what do you want to trade, yes? >> Mhm. >> So for example, I had for example, I was trading three pairs.

12:47 I was trading USD Japanese Yen, USD CAD and uh EUR USD. These were my my three basic pairs which I was trading in this um in this system. And sometimes, you know, USD Japanese Yen sometimes makes very very big movements. >> Yeah. >> And this can this can kill your account and when uh you have no chance to correct this anymore, especially if you have not enough money on your account.

13:11 And yeah. >> Did you did you feel that having three different types of pairs >> Mhm. >> made it noticeably more difficult in the beginning for you? >> Um it was a bit more difficult because you had to focus on on on three pairs, not only on one pair. But um but I was thinking um I I I think I was too greedy at the beginning. >> Mhm. Yeah. >> Uh if you're too greedy, this will not work.

13:37 Yes, but it's better to to be more This is what I learned also for my for my trading career, to be more defense defensive in my my trading setup. >> Yeah. >> And probably trade with less leverage. >> Mhm. >> Uh but uh and on um and also select um uh special trades, not don't trade don't take every trade. >> Mhm. >> And you can imagine how difficult this is to to tell this to an automated system.

14:05 Take Take only the best trades. Yes, it's very hard. Probably with AI it's possible, but >> Yeah. >> um um with with conventional languages like uh MQL with uh MQL 4 something, it's not so easy to do this. >> especially when you have to define what does the best trade mean. >> Yes, really. >> Because it is different for every single person as well. Is it the fastest one?

14:28 Is it the one with the least loss, the most win, whatever. >> Yes. >> So, you do have to really think about that a lot. Um Well, how about if if we were to think about your your trading philosophy nowadays, how would you describe that? >> My trading philosophy is um never go First, okay, you have first to define uh My system is based on two uh uh on two time frames.

14:54 You have a bigger trend >> Mhm. >> and um and a smaller trend, yes. And um well, I take Normally, I take pullbacks. So, this means I'm I'm I'm trying never to uh to trade against the trend. >> Mhm. >> It's Sometimes it's not possible because the trend is also changing during >> Yeah. >> during your trade is open. And so, you have to manage this, yes.

15:13 You have You have This This is very important for management when when when you have a trade a trade open and you see that it goes in in the wrong direction. >> Yeah. >> And with with my automated systems were never never regarding this, and this was the problem. So, they were trading every let's say every five or 10 pips they made another another trade.

15:37 >> Mhm. >> And so on, also if they were completely wrong, and this I would never do when I'm trading manually. >> Yeah. How often do you trade usually? >> Oh, I trade during during one day. Well, if you trade Bitcoin, there are there are probably not so many trades. >> Mhm. >> Probably, let's say three or four trades per day. >> Yeah. Yeah. >> But in in Forex, I make sometimes Well, it it depends how the how often I get pullbacks.

16:05 It It depends how the market how the market's run. It's I I'm I'm orientate orientate to the market. >> Yeah. >> Is the market good for me? Do I get pullbacks? If I don't get pullbacks, for example, um for example, now now with US dollar, US dollar goes up and I don't get an entry when it is like it is. Yes, I I don't I don't force any trades. >> Yeah.

16:28 Yeah. >> I'm I'm waiting I'm I'm waiting till I get the possibility to enter. >> Yeah. But on average, basic day, you would say like less than 10 trades? >> Oh, very often over 10 trades in in Forex in Forex because there are some there are some sometimes market conditions where you can really uh really trade trade a lot. >> Mhm. >> Um sometimes it's not it's not so often when I when I look, okay, what's what's going on in in Bitcoin, for example, I'm trading also Bitcoin very often because Bitcoin is for me a very

16:58 good uh asset to trade. Somehow, I found this out not not so long ago, but um but it's it's working very well, I think. >> Right. >> And if you if you get the right broker, then >> Mhm. >> I don't want to say it's if it has to be a maker broker. I don't want to discuss that. >> Yeah. >> If you find the right broker, then then you you can become very content with this.

17:26 >> So, so you would say that trading uh the bigger coins in crypto, so not DeFi things, but bigger coins in crypto, is still very different from Forex. >> Mhm. Forex is a bit different from uh from the from the kind of trading because in in Forex you have you have many many single trades. >> Mhm. >> You can trade Well, you can you can do this also in in in crypto, but um when when I do when I trade in crypto or also in Forex, I I try every time to stay with my with with the same leverage.

17:59 I don't over leverage something like like some martingale EAs are doing this, yes. They they start with 0.01 and they end up with well, 0.5 or something else. And if it's it's very crazy. Yeah, it's >> Yeah. >> They they are existing, yes. And we we we are not stopped if you don't stop them or if you don't program them, but they but you can stop this.

18:23 >> Mhm. >> This this was was my biggest issue to find out how they how to make them less aggressive. >> Yeah. >> But they make enough wins, but uh but they do they don't don't harm your accounts. >> Yeah. Yeah, because if you get one maximum loss with those leverages, that's that's a goodbye situation, >> [laughter] >> basically. >> And if you have infinite money, it's okay, but nobody has this, yes.

18:45 And but but also in Forex it's it's it's a bit different because um um in in crypto you have Let's say you have a you trade with a with a with a smaller leverage. I never trade over uh 5x is my standard leverage, I I would say. And I don't go over it and and um and I'm very I'm very careful with um especially in crypto, I'm very careful with uh with buying trades because you saw in the in the bull market for example >> Mhm.

19:14 how often we had the situation with there was some flash crashes and even with the smallest leverage people lost their their whole account and so >> Yeah. Yeah, that happened a lot. >> No. >> And and in crypto there's >> [sighs and gasps] >> there's so many players there that that fall down really heavily and that affects the entirety of it like what was it called that that really big company that fell if No, what was it called?

19:45 >> FTX FTX >> Yeah, FTX that's Yeah, yeah. Everything went down with that one. So, you do have to be a bit more careful there. >> Yeah, yeah, this is true. So, you have to for me for me it was a it was a warning not not to exaggerate uh your your trading amounts in in cryptos, but also to be careful especially with um uh with with buys in especially in a probably in in the in the bull market because um I think in the bull market we have a most we have much more danger from flash crashes than in in the bear market

20:23 because in bear market you're prepared that the price is going down like you if you watch now Bitcoin yes okay we have a phase where Bitcoin is going a bit up but I will I think this will not uh last forever. >> Mhm. >> And um and I never saw a a flash crash to the upside. So, >> Yeah, I don't think I've heard of that one. So, no. Um and considering the the years you've been trading both if you can both effects and crypto >> Yeah.

20:52 >> and there's so many different players so many places you can trade from >> Yeah. >> that So, so what do you usually use for like crypto trading yourself? >> For crypto trading you mean the the exchange um >> No, my point was like do you actually use exchanges mostly or do you trade it through DeFi ways more? >> Oh, through exchanges. >> Yeah, it's safer.

21:15 >> I don't know if I can tell the name now, but uh >> Yeah, no, but it's safer basically. >> Better not tell. Okay. Okay. >> But um then if you think about the Forex side, what made you choose XChief? Cuz there are so many different players. >> Um I saw the the reviews. Normally I'm checking the reviews and I I had a lot of experience with different uh uh different exchanges also in Forex.

21:41 >> Mhm. >> Um and well, at the beginning it's diff- difficult to say if it would have worked later because at the beginning you trade different. Yes, you lose your account and you Many people say, "Oh, the the broker, it's the broker's fault." or something. Yes. >> Um well, in some cases it's it's it's um it's true, I would say. Uh but um but it's uh I say it's it's 50/50.

22:05 Yes, you you have to um also um the problem probably you have trades open over the weekend. >> Mhm. >> And I had some brokers, for example, where um they they had a big big liq- liquidity jumps and the the price was moving very fast and and some and I I I came back on on Sunday Sunday night at at 11:00 German time. >> Mhm. >> And um and I saw, "Oh, what happened with my trades?

22:32 Why they Why Why they were closed?" It It's It could happen. Yes, it's depends on on the on the liquidity of the the jumps what you what you have in your in your And every broker is a bit different. Yes. >> Yeah. >> And um and the the the If I think about XChief, I'm I'm very content, I would say. I'm It's a good experience for me now. >> Yeah, that's good.

22:53 >> And uh the support is okay. The the manager I I he's very he's very fast when I have a question or when I have a problem, I cannot say anything bad about this uh >> Yeah, that's good. >> Yeah. >> But but basically also, at least in my own opinion, you kind of have to think about the way you trade and choose the broker according to that as well. >> Yeah.

23:15 Yeah. >> Cuz if you tend to trade like you you trade several trades a day >> Mhm. >> and if the broker takes a lot per trade, >> Mhm. Mhm. >> then that's going to hit you. >> Yeah. It's It's good for for example also when a broker has different bottles where you can select where sometimes you have a bigger spreads or or you you have to put more money in your account and you get better conditions, for example.

23:38 This is okay for me, yes. >> Mhm. >> And and also if if a leverage is big enough, yes. I I Well, I made a new experience with with with a XChief some week I don't I don't know it is some some months ago. >> Mhm. >> Because I opened an account and then I had to change my account. They They were not offering this old account anymore. >> Mhm. >> When I saw and when I saw some some leverage uh problems where yes, but they explained it to me.

24:06 It was okay for me. >> Yeah. >> Yeah. >> Good. >> Yeah. >> Yeah. Yeah, you do have to really think about those like what do you choose and why and how? >> Yeah. Yeah. >> Um So, okay. If we think about >> Mhm. >> someone starting to trade right now, >> Mhm. >> what would be the main thing you want them to do and or think about? >> Mhm. The main thing for for newcomer, uh try to find um find find somebody who can explain you how trading works.

24:42 >> Mhm. >> This is what This is very important, I think. >> Mhm. >> Because if you trade, you can you can do it alone, yes. I tried also to do it alone, but >> Yeah. >> but the the learning phase is very very steep. Yeah, it's very >> Yeah, it is. >> very hard, yes. And you think, why does it not work you after some years yes some some people said I I I saw some people also on YouTube as I am I'm watching some some so-called in in uh influencer yes >> Mhm.

25:09 >> we Well, sometimes showing what we are trading many are not showing what we are trading when you know exactly okay he does not do this for because of trading but uh for affiliates >> Mhm. >> um stories and so on. >> Yeah. >> But uh you should you should ask somebody how should how should I how should I watch the markets? >> Yeah. >> I look at the markets?

25:33 And when you when you will will you when you will find out what to avoid >> Mhm. >> what what never to do for example um be careful if you go against the against the trend >> Yeah. >> very careful you can do this but only in special conditions here for example something like this uh so the the basics how how we should start. Uh and for me it was was a was a changing point also when I was starting with with a very small account in you can trade crypto or uh forex this is not important but you can you can if it works

26:06 when it works also for a small account. >> Yeah. >> Mhm. Well you should have a bit air to breathe for for your for your money yes so so you should have a >> Uh >> a size for example let's say some thousand uh some thousand dollar is uh is my is my uh my experience what worked for me in um in crypto it was less at the beginning I I started I started really uh it was a fun trade like 50 to 100 dollar >> Mhm.

26:37 >> and I was trading with with 50 dollar account let's say 280 dollar >> Mhm. >> and this was an experience for me where I said well it it works you can you can trade this if but you you have to have this discipline >> Yeah. >> take take your profits out. Don't be too greedy. >> Mhm. >> Take make make a rule because some some people say yeah, let your let your profits run, but this is a I think this is this is advanced.

27:02 Let your profits run because it's better to take your profits. >> Mhm. >> But make look at your trade. What do you put inside inside your trade? So what what are your fees for example? What is your commission size? And then find a rule where you can say what do we have to do not to to keep my account and and to beat this commission size at least, yes?

27:27 >> Yeah. Yeah. >> Beat it with some factors or something. This was the turning point for me. >> Yeah, basically be able to live to fight another day. >> Yes. >> Instead of just trying to get the biggest win. >> Yeah. Yeah. >> Yeah. >> And what what I say also good about stop losses. Many people say stop losses important. I'm I'm a bit uh uh different well >> Okay.

27:50 >> I'm I'm careful with stop losses. I try to to optimize my losses. >> Mhm. >> So I because stop losses take a lot take a lot of your capital. You have to know this because stop loss appears when you are wrong in your in your trading setup, yes? And this can happen very often, yes? So uh so it's better um you can you can have one trade open, one wrong trade.

28:11 You can have two wrong trades open, but don't don't have too many wrong trades in in in the wrong direction. This this breaks your account. This is for me uh very important experience. >> Okay. Well, that's that's interesting because as you said, most people do talk about stop losses. >> Yeah. >> So it's very interesting. >> Mhm. >> Okay. Well, um I really want to thank you again for coming here.

28:33 I personally think that your experiences are very interesting for a lot of people and I especially agree with the idea of finding someone who can kind of mentor you or teach you at least a little bit. Very good idea. And I will be very happy to have you again. Thank you so much, Rene, and have a good day. >> You're welcome. I thank you for having me and have also good day. >> Thanks.