The Trading Expert - How To Get RICH In Your 20s *my trading method* (Umar Ashraf) E027

Added: Dec 18, 2023

Getting into Trading

Umar got into trading in 2013 at the age of 18, inspired by the success of the richest people in the world who had hedge funds. He initially invested $20,000 and experienced both gains and losses, leading him to question whether trading was the right career for him. However, he decided to give it two to three years of dedicated effort before making a final decision.

Learning to Trade

Umar taught himself how to trade by consuming various resources such as books and YouTube videos. He emphasizes the importance of understanding the relationship between buyers and sellers, as well as the order book, in order to develop a solid foundation in trading. He also recommends practicing on a paper trading account before investing real money.

Challenges in the Trading Space

Umar highlights the challenges in the trading space, particularly the rise of influencers and brokers promoting unrealistic expectations of easy money in trading. He also expresses his frustration with the Forex market, citing its lack of centralization and susceptibility to scams.

Transparency and Journaling

Umar advocates for transparency in trading and shares his profits and losses on social media to provide an honest portrayal of the difficulties in trading. He also emphasizes the importance of journaling and tracking data to understand one's trading patterns and mental biases.

Part-time vs. Full-time Trading

Umar believes that becoming proficient in trading requires full-time dedication, as he personally experienced significant success in the past three to four years of full-time trading. He acknowledges that part-time trading is possible once a solid foundation has been established.

Investing vs. Trading

Umar distinguishes between investing and trading, noting that investing involves long-term positions based on fundamentals and macroeconomic factors, while trading focuses on short-term price movements to generate profits.

Crypto and Blackline Trading

Umar reveals that he has invested in Bitcoin and expresses optimism about its future potential. He also discusses his new venture, Blackline Trading, which aims to recruit and support talented traders to trade on a floor and split profits.

Trading Strategy and Long-Term Investments

Umar discusses his trading strategy, which involves parking money in crypto and holding it for 5-10 years without being swayed by short-term market fluctuations. He emphasizes the importance of having a long-term perspective and not being influenced by the noise in the market. He also shares his experience of buying Tesla stock during a recent move and highlights the importance of staying focused on long-term investments.

Biggest Wins and Losses

Umar shares his biggest win, which was a swing position on a firm that resulted in a profit of about 700,000 dollars. He also discusses his biggest loss, which occurred when he shorted the market and ended up losing 900,000 dollars. He reflects on the impact of this loss on his trading mindset and the subsequent trades he made, emphasizing the importance of taking time off to reflect and regroup.

Dealing with Stress and Future Plans

Umar discusses how he manages the stress of trading, including activities such as sauna, meditation, and exercise. He also shares his long-term plans, expressing a desire to step away from trading in the next three to four years due to the high stress involved. He emphasizes the importance of finding a balance and focusing on other aspects of life beyond trading.

Building Wealth and Investments

Umar talks about his approach to managing the wealth he has accumulated through trading. He discusses his investments in the crypto market and his decision not to buy property in Dubai to avoid creating attachments. He also shares his investment in a software business, which he co-owns with his two sisters, highlighting the importance of family-based business and the value of their contributions.

Challenges of Living in Dubai

Umar shares his experience of living in Dubai, highlighting the transient nature of the city and the challenge of finding a sense of home. He discusses the fast-paced lifestyle and the difficulty of establishing deep connections in a city with a diverse and transient population. He also reflects on the passage of time and the rapid pace of life in Dubai.

Networking and Social Media

Umar discusses his approach to networking and social media, expressing a preference for quality over quantity when it comes to building connections. He emphasizes the importance of focusing on goals and adding value in any interactions, rather than simply seeking to expand one's network. He also shares his reasons for engaging in social media, including the inspiration he drew from others' success and the potential benefits for his software business and trading career.

Overcoming Obstacles and Building Confidence

Umar reflects on the initial obstacles he faced when speaking in front of the camera and the process of building confidence. He shares his approach of speaking to the camera as if he were giving advice to his younger self, which has helped him overcome his initial discomfort. He also emphasizes the importance of success and expertise in building confidence, as well as the value of trust and influence in growing a following.

The Trade Zella App

Umar introduces Trade Zella as a platform that allows traders to track their performance, analyze their statistics, backtest their strategies, and journal their trades in one place. He highlights the app's features and its potential to provide valuable insights for traders, as well as its role in the growth of his software business.

Building Trade Zella

Umar shares his experience of starting Trade Zella at the age of 25 and the challenges he faced in transitioning from a trader to a tech entrepreneur. He discusses the difficulties of learning how to communicate with developers, understanding the design process, and managing a development team. Umar also talks about the setbacks he encountered, including working with an agency that built a subpar product, which led to a year-long delay in the project. However, he persevered and eventually found the right team to rebuild the app, which was launched in 2022.

Umar emphasizes the importance of tracking data and journaling in trading, which has been a key factor in his success. He also talks about the challenges he faced in building the Trade Zella app and the process of learning how to lead a team and manage a tech company.

The Success of Trade Zella

Despite the initial setbacks, Umar's dedication and hard work paid off, and Trade Zella became profitable within three months of its launch. The app has seen organic growth and is on track to reach eight figures in annual recurring revenue within two years. Umar attributes the success of Trade Zella to the quality of the product and the team behind it. He also emphasizes the importance of customer feedback and continuous improvement, as well as the role of his sisters in managing key departments within the company.

The Future of Trade Zella

Looking ahead, Umar plans to scale the development team and invest in marketing and advertising for Trade Zella. He also discusses the potential for partnerships with influencers and the expansion of the app's features, including the integration of AI to provide personalized feedback to traders. Umar's long-term goal for Trade Zella is to build the best trading tool that helps traders become profitable and to continue growing the company's valuation.

Launching Blackline Trading

In addition to Trade Zella, Umar is also launching a trading floor called Blackline Trading in Dubai. He shares the challenges he faced in obtaining the necessary licenses and the legal complexities involved in setting up the trading floor. Umar plans to start accepting applications for traders in January and aims to create a collaborative and supportive environment for traders to thrive.

The Role of AI in Trading

Umar acknowledges the potential for AI to replace traders in the future, particularly with the rise of high-frequency trading. However, he believes that there will always be a place for skilled traders who can adapt to changing market conditions. He also discusses the use of AI in Trade Zella to provide personalized feedback and guidance to traders, enhancing their trading experience.

The Future of Blackline Trading

Umar plans to deploy his own capital to fund the traders at Blackline Trading initially, with the potential to consider outside capital in the future. He emphasizes the importance of building a strong team of experienced traders to lead and mentor the new recruits, creating a scalable system for growth. Umar's long-term vision for Blackline Trading is to create a supportive and structured environment for traders to excel and thrive.