Hey everybody I’m Dan Hodgman and today I’m
sitting down with CVO and founder here at Topstep: Michael Patak. Michael, this
is exciting. This is exciting because we’re talking about something that we
work on every single day and getting people to the funded account. Totally.
Every day every trader comes at this and every trader in the entire world we all
sit here and our goal is to make money. Yep we want to withdraw money, we want to
take money out of these markets, and today we get to talk about Jacob B. out
of Utah who was able to withdraw $7,000 this month. Yes,
so $7,000 Jacob B. out of Utah, I’m a big fan of Utah by the way, great ski area.
Mm-hmm! So he withdrew $7,000 out of his funded
account. Now, this is October work that he put into it, we had a great month in
October. Volatility was there. Trading the Nasdaq-
big mover. Kept it together, went through $7,000 out of the markets. So, he called us up. Well, actually he emailed or however – he did it. Contacted us and requested his withdraw. A really cool story behind it as he’s putting some of that
capital to put a down payment on a bar. So, this guy’s an entrepreneur, I’d say, of
couple sorts both in the markets and in the business world. Totally, I
think why it’s so important, you know, we see traders taking out big withdraws all
the time you see it in the emails every single month, but the reason this
one I think is so important and it’s really cool to talk about is because he
was able to take the profits he made in the markets, he was able to capitalize on
volatility and pursue a secondary or another dream. Uh-huh. So he’s now
pursuing multiple dreams and creating some multiple different sources of
revenue and that’s what we have to do as traders. We have to prepare for the down
times and having those two balances is really important, it’s really exciting.
Danny, I think you’ve seen this on the trading floor, you’ve seen it from other
traders in this business, when you’re making money in this
business the goal is, we always say, keep it in your pocket. So put it in your
pocket and then do something with that. I mean I would take that money and I put
it into real estate. I took that money I started the company. I took that money I
started another company, and that company failed. There’s different things at work.
There’s different things that don’t, but you’re diversifying here. You
have to expand your horizon and whatever it is put it into something that can
hold that cash. If it’s for me, I like buying toys. I buy motorcycles, and
snowmobiles, and cars, whatever the case may be – put it
somewhere to enjoy it have fun with it. Or invest. Invest it. Yeah
So, there’s different things. I’m glad he said that because you want to have fun with
this because this is your career that you’re doing and you’re pulling money
out of the markets. Treat it as such. If you were making $7,000 in a
month that’s what, 70… $84,000 a year. You’re making $84,000 a year through a gig.
Let’s just call it that right now. You would take vacations, you would buy a
motorcycle. You can start to grow that it doesn’t have to start there so,
Michael, let’s kind of shift here and let’s talk about how he was able to do
that this a month. So, first and foremost, the reason I like to touch on
this and what’s so great he came in here with a $50,000 trading combine.
Passed the combine. Exactly, and the one thing he did, he said, my
personal loss limit is $500. At no point, in any given day, was he gonna risk more
$500. What he then did, his average
winning days were balanced out nicely. He was able to carry a two-to-one reward over risk on a day as a whole. His average winning days he was making a $1,000 of every winning day and his average losing days were $500. So
he could have two losing days for every winning day and still come out
consistent across the board and that’s how you start to grow. He was hitting
his personal loss limit which does not break a combine rule because we have our own
loss limits with the trading combine: $1000. He was in a $50,000 so he had a $1,000 daily loss limit with Topstep He cannot break that. He set his
own $500 daily loss limit, stayed right at that, so his average trade or his average
loser would be no more than $500 and … would be no
more than $500 and he then focused on maximizing his profits. Cutting his losses. He did a hell of a job. He did 2:1, $1,000 for his winnings and $500
for his losers. It was perfect and you know what – he did it trading making an average
of only three trades in any given day and trading just one product. So we hear
it a lot. Everyone wants to talk about diversifying their products and trade
all over the place. When the volatility and this action is here trading one,
picking and choosing that high probability trade, that is going to
return is the way to do it. Jacob was able to do it great and so we commend you and we’re very proud for you. Great work
out there Jacob! Well, Micheal, thanks for sitting down. This is fun.
Hey Jacob good luck with the bar. Hopefully you named a drink after TopstepTrader. Good luck with everything and trade well and always trade for tomorrow.
We’ll see you in the markets.