Rolf Schlotmann had always been fascinated by the idea of sitting at home making money. At age 14, he eagerly opened a live Stock trading account without any proper trading knowledge. It wasn’t until after finishing high school he was introduced to the world of Forex trading.
During his University days, Rolf studied International Finance, Statistics, and Corporate Finance. Although he had a high-flying corporate job after graduating, he didn’t like it and continued to pursue his dream of becoming a professional trader.
Rolf has teamed up with Moritz Szubatinski whist in Asia and founded Tradeciety. You can hear the rest of Rolf’s journey, his sound advice on trading for a living along with a bunch of tips and tactics you can apply to your own trading in our interview:
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- [16:42] I really like the idea of divergences because you can get into the new trend much earlier.
- [16:57] Divergences often can happen with patterns such as Head & Shoulders and Wedges.
- [18:14] You can adapt much easier if you only focus on one thing instead of being spread across so many things.
- [21:09] You can always manage your risk a little bit with correlations in Forex
- [23:51] One of my most important rules is that – “I only take trades on the candle close”
- [24:34] The candles can look very strong. The breakout candle can look very strong while the candle is forming but then often you have those traps and spikes. Those are very dangerous for Reversal traders.
- [26:08] If you do your work on the weekend, if you know how to organize yourself, use price alerts (they are really a big game changer to organize yourself and to reduce screen time), that can become quite stress-free.
- [31:33] I would never be late, I would always be on time, I will never skip an appointment. And those are the things that I think when you can cultivate them in your daily life then you can also apply them in your trading.
- [33:07] Don’t worry about income-generating. The first step is probably that you need to add consistency to your approach.
- [33:31] If you’re always changing your indicators, your tools, the way you pick trades, the way you manage your trades, how you choose entries and exits, how you size your positions, then you can look back at your trading history and performance records and you cannot analyze them in a meaningful way.
- [34:22] Traders should focus more on non-trading activities.
- [35:10] Traders will often spend years and years without making any progress at all and they never really take the time how to understand what is going wrong.
- [36:09] If you bring a 9-5 mindset to trading (which is more geared towards entrepreneurial thinking) then this just setting up for a disaster.
- [39:48] On the higher time frames I usually don’t care too much of the news events.
- [41:14] Traders always say that indicators are not working, they are lagging or whatever. When I then ask the trader “have you ever taken the time to really look at the formula of the indicator?”
- [41:30] Nobody really understands what the indicator is doing.
- [38:13] Look at the formulas and really understand what they are doing and then you would get ideas on how to combine the different information that you get to create a meaningful trading strategy.
- [43:10] Every trader’s different but you have to find out what works for you.
- [45:56] You need to ask yourself about the different qualities of types of patterns and then you move away from the surface level technical analysis approach.
- [50:36] Take your time, make sure that you always enjoy the process, and especially avoid the noise that is in social media.
- [50:50] Just be patient and have realistic expectations.
- He trades Forex & Commodities
- He’s a Reversal trader
- He specializes in trading different patterns around trends
- His main strategy is based on Early Trend Following
- He’s using different setups, patterns, and tools depending on the market situation
- He trades using more than H1 timeframes
- Majority of his trades last maximum a week
- He has an average of 50% to 55% winning rate
- His Reward-to-Risk ratio is 2:1 and 3:1 on average
- He only makes 3 to 7 trades a week
- He trades exotic pairs only on the higher timeframes
- His trading week starts on Saturday where he does his morning rituals
- He uses TradingView for his charting
- He trades 80% Forex and 20% Commodities
Rolf’s Strategy of the Week
- Analyzes how the neckline breaks in a Head & Shoulders pattern
- Checks when he’ll get a retest and when not
- His Stop Loss is always above the neckline and he doesn’t move the Stop Loss to break even
- His Profit Target is 2R