Krupiński Patrick received his education in Luxembourg, a country that leads the way in the Old Continent in the banking and financial. From the age of sixteen he began to deepen expertise in trade-related securities. Since he reach adulthood, began to actively work in the financial market, where, despite his young age achieved significant successes to date.
Patrick had the opportunity to gain experience in trading with the elite of German traders, people who are seen as authorities in the stock market. Currently, remains largely speculative oriented professional trader managing accounts of individuals. Patrick specializes in the mechanics of the market, technical analysis and trading systems – manual and automatic. I invite you to an interview with Patrick:
Where did the idea for speculation come from? How you get interest in this topic?
I grew up in Luxembourg, the country is famous for its banking sector, capital management and creative accounting. The educational system in this country is designed for people to have good prospects for career start after the completion of their learning cycle. Personally, I attended the school which had specializations in financial markets. So all in all – I had no choice but to learn how to trade securities.
How were your beginnings in the market?
The first transaction I made at the age of 16 – on account of my parents. From what I remember, it was profitable position which gave me strength and confidence in myself. I believed that the financial markets can be very profitable. However, subsequent transactions were not like the first, and I started to study every entrance and exit from the market, I did an analysis of errors in which I can say I started learning quality trading.
Did you had or still have a mentor, someone that always can help?
When I was 18, I had my own deposit, which traded on the basis of the experience I have gained in school and parents deposit. I thought then that I’m experienced enough that I do not need a mentor and someone who sometimes will tell me good advice. Trading then was really profitable because I played always in accordance with the trend, but it was not a style that I could calmly and confidently transact. Then I started to look for contact to traders from Germany, who are recognized in Europe for the best. I met two people who have two different styles of trading and taught me in two different ways. One of the men taught me about currency trading and building trading systems based on technical analysis tools. The second taught me to understand the financial markets from the inside. He taught me to play on a clean chart with an understanding of the reasons of changes in prices. I noticed then that the question of internal monologue, “Where are you going, price?” must change into “Where dynamics rise?”.
What was your strategy when you discovered it and found that it’s just what you are looking for?
My strategy is based on the DOW theory which is the mother of Elliot theory. It has been described about 100 years ago. Analyzing the graph draw attention to the trends that can be separated into several categories, large, medium and small trends and the trend of the shallow and deep. Analyzing the trends you have to know if the market is strong or not. I always try to play according to the trend. For example, I try to play with the average trend in the direction of a large trend. By now 10 years of my presence on the market, I noticed that playing with the trend of progressively each other sooner or later brings large losses and has no right to be profitable.
What is most important in trading, the golden rule?
The most important rule in trading is to play with the trend. Playing with the trend is sometimes not easy because as I said before, the trends in trend are always, and we as traders need to choose a trend to deposit and SL to the trend in which we play. Peace of mind is more important than all other things, but to get it we must be sure that we made a good decision on the market. The confidence we get only by having extensive knowledge and experience, which should be built on a solid foundation of knowledge.
What advice would you give to people who are just entering the market?
To look for a mentor or go for training to someone who has a lot of experience. Knowledge of financial markets is needed and it is strictly necessary. I personally am terribly annoyed by people saying that the price bounces because of the trend line, Fibo etc. Many people play the trend lines or other such technical analysis tools without having the slightest idea what really causes this trend lines. Similarly, with pin bars and false breakouts. We have to remember that price draws candles – not the opposite. But this is a long topic and reduce it to one sentence. The alphabet starts from the letter “A” – not from the letter “Z”.
Is trading is a source of stress for you? Or you have ways of coping with it?
Trading does not cause any stress to me. I have always matched positions to capital I manage, I do not have to be scared or stressed about unsuccessful transactions.
What do you do when the position is profitable? You close it with TP or follow the rule “let your profits grow”?
People using TP will be able to earn, but they will never be able to knock out the elite traders who keep the profits and give them chance to grow. Holding gains this is the basic principle, which is held in my work.
“Cut losses and let your profits grow” – do not you think that allowing profits to grow refers to the stock market, where we have long trends and not especially to FX where everything is more dynamic?
I have different opinion – when you trade on low TFs then you do not have to worry about small violations.
The chart below shows EUR / JPY which was in a confirmed uptrend since mid-August and is still there today. Opening transactions in the currency market, we have the risk of the weekend there is a significant gap, the same risk we also have on the stock market because do not forget the stock market is open, depending on the stock exchange just a few hours a day. This is usually 8 hours. May exchange markets open throughout the week which enables us to closing the position at any time. Currency markets, however, depending on the pair you want to trade may also be in increasing or decreasing trends even for many years.
What are your reasons to open a position?
Low price in an uptrend or a high price in a downward trend for me is a signal. If traded on a small TF then it is really important.
You mentioned trend lines, do you think that they are quite weak tool?
I think an understanding of how they’re being created is much more important than the drawing, a trader who understands the market mechanisms also understand that the trend lines are worth the same as last year’s snow. When trading professionally with the pros, I did not see anyone of them drawing trend lines. You can draw the trend line in a hundred different ways, and holding on to each of them we will not be able to take any decision to enter into the transaction.
Do you think that capital management is the most important part of trading. Is the player’s advantage can only be based on the excellent management of capital?
I believe that capital management is a very important element that must be matched to the strategy by which we trade. Even as we master the management of capital without an effective system it’s not going to help us, and sooner or later our deposit will be empty. Trading is a mechanism with a number of gears which must be matched.
Do you see any differences between young Poles, and young Germans and Luxembourgers who begin their adventure with trading. Or “youth” in the West has better prospects for success in this field than young Poles?
In Luxembourg schools are specialized from high school, I went to high school with a specialization in the financial markets, governance and administration which definitely helped me a little bit at the start of gaining knowledge in this field. In Germany I lived as a child, I went to Hamburg at the age of 22 years so I cannot speak on the subject.
Are there any differences between the Polish and the West when it comes to FX trading industry? Amount and quality of sites, blogs and forums dedicated to trading? Is Poland missing something here?
The quality of the German sites is much higher than in Poland. I cannot say too much what in Poland is missing or not, because I spend a little time on various internet portals and do not know what already exists or not.
Why did you choose to come to Poland and whether you intend to live here permanently?
I returned to Poland because I like it here, in Poland I feel like home and I’m not going to leave now.
What do you like in Poland and what do not, if anything surprised you in our country? What cities have you visit?
I visit many Polish cities, from sea to the mountains. I like to travel!
You said something about trends, can you say how you prepare your analysis and open positions?
You will be able to find it in my book soon. I promise that I will describe everything really thorough!
Thank you for your time!