We are delighted to offer our readers the chance to get an insight on the trading of one of Alpari’s unbelievably successful investors. In just 3 months he managed to earn 55,000 USD on structured products and 67,000 USD on PAMM Accounts by investing in 11 different products and correctly recognizing the market tendency 9 times. For this feat, he managed to earn 122,000 USD.
Nikolay Volosatov kindly agreed to give us an interview and share a few of his secrets to success.
Have you been working on financial markets long?
I’ve been following financial markets for a while now: I made my first Forex trade in 1998. Back then, people trying to get into Forex were having really negative experiences because they were completely misunderstanding the way things work. I lent 2,000 USD from friends and within a month had lost it all. It took me two years to pay them back, with me putting aside over half of each salary I received to do so. I started working as an accountant and came back on to the financial market only in November 2014 and during my long break I carried on following the markets. I was reading a lot of analytical articles, listening to Business FM, but what really pushed me to start working on the financial markets again was the thought that I couldn’t miss out on the opportunity to make money during a financial crisis; that I shouldn’t be caught sleeping, like I was back in 2008. This time I was ready to make the most of it and that’s what I did.
What enticed you to make money on investments and not something else?
Alpari offers a wide range of different products and most of all I liked that you can mix less risky investments as part of Structured Products, with riskier PAMM Accounts. As such, the chance to make money is increased. At the same time, I hadn’t forgotten my dismal experience of 1998 and so decided not to trade independently, instead letting Managers do the work.
How did you learn? It must’ve been difficult to weigh up the pros and the cons, deciding how much to invest, how much to risk.
Using the lessons I had learnt, I only invested an amount of money which wouldn’t be a catastrophe for me if I lost it all. I think this was about 25% of the capital.
What sort of personal qualities do you think a winning investor needs to have? And do you think these qualities are something a person is born with?
Patience and cold-bloodedness. When I was a having unlucky days, losing a few thousand, I was completely relaxed. This was in absolute contrast to the tempest of emotion that I had experienced in 1998.
Only a cool head and keeping my emotions at bay helped me succeed.
Do you remember the moment when you decided to make serious money? What changed for you then? What was your setup? Was there a concrete plan of action?
As I already said, by looking at analysis of the economic situation I wanted to earn big on the market swings. I understood that there isn’t a moment to lose, especially when a crisis looms.
You need to get rid of any property to get your hands on cash. In times of crisis, no one wants stocks and securities, but cash provides for the opportunity to make gains. I loaded money onto my account and bought a few structured products based on the price of oil and the ruble falling. I used these investments to take advantage of Alpari’s Capital Account and invested then funds in PAMM Accounts in the top ten in the rating.
Do you look to surround yourself with successful people? What do you think success is, other than from a financial point of view? Do you have someone that you see as a role model?
Who doesn’t want to always be surrounded by successful people? The problem is, they are so few; the majority of people are always unhappy with their life, but don’t bother doing anything about it.
Do you think you have the inherent characteristics of a gambler? What risks are you prepared to take?
Gambling is a dangerous thing. Risks can only be controlled by the readiness to lose without causing yourself real financial damage. Thus, risky investments shouldn’t exceed more than 25% of total capital.
How do you make decisions on whether to buy one or another set of shares? Do you have a strategy or do you make spontaneous decisions? Do you believe yourself to be lucky?
Let’s leave luck for the casino. On the financial markets only harsh realities exist: where there are global trends and you need to just keep an eye out for them. For example, many analysts recognized the trend for oil falling and a technical analysis gave us an idea as to where it would fall to. Take and jump on the leaving train.
Could you teach someone how to make money on financial markets? How hard is it? What would you start your classes with?
I think, first and foremost, you need to learn to spend less and put more aside to make investments. I gave my nephew Robert Kiyosaki’s book.
At sixteen years old he’s already started putting money aside, not for an iPhone, but for an investment account. This is the most important, get your priorities right.
Do you remember how you made your first ever bit of money?
Yeah, I remember it really well. In the 90s I worked collecting glass and then I made money picking blueberries and selling them. I had to make money somehow.
Have you had any downs in your life? How did you overcome such periods?
During the crises in 1998 and 2008 there were, but those are made for up by the profit I’ve made this time.
What’s your favorite security or trading instrument for investment? Why?
Structured Products and PAMM Accounts.
Do you think it’s possible to live on the back of trading and investment alone?
I think you can, but real life business gives you that bit extra. I mean, it’s important to create something and not just to increase the balance on your account. Although I really like how financial markets give you geographical freedom. This is really important for me.
What hobbies do you have other than trading?
I like photography and travelling. This is what I live on. From journey to journey. On the whole, it’s on travelling that I spend my money. For me this is a real drug: if I don’t go anywhere in the next few months then I’ll feel really depressed.
Imagine that you have an unlimited amount of money, what would you do?
I would do a lot of charity work for the good of society and for my own development. I’d look after my family.
Why did you choose Alpari and Alpari’s structured products?
Alpari enticed me with its ratings. Although I won’t hide the fact that I carefully looked for a broker and read a lot of reviews. Many of these were negative, but I never saw one complaint about Alpari.
Alpari is the only broker that offers investors the opportunity to use funds invested in structured products as a security. Did you take advantage of this service?
Using precisely this service I made my money. I’d really like to thank the company for the provision of this service. It’s a really useful combination.
What ambitions do you have for the future?
My next target is to quit work and go travelling for a long while. I’m halfway towards this.
We wish Nikolay further successes on the financial markets and in achieving his dreams.