264: Gabriel Bullo - Contest Winner: One Trader's Unwavering Dedication

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This is episode 264. I'm Tessa, co-host of Chat with Traders. We have a different episode today apart from our regular programming, so we will continue with our regular programming in the upcoming episode. Do you think trading contests are not a big deal? For this trader, he didn't think so either. At first.

Well, Gabriel, welcome to Chat With Traders.

Okay. Uh I'm from Philippines and I am currently in Australia right now. Because my wife wants to pursue culinary. So we just uh moved here recently. But before that, I have worked in Dubai for six years. That's why my flag in the competition was in UAE. I'm an accounting graduate. But I never used it and I even forgot all about it because uh I've been working in sales for too long. Now I'm just uh normal guy who work his uh nine to five job and to earn some money and pay bills.

How old were you when you first got interested in the financial market?

It was 2020, pandemic came. Then one of my classmates in college who is in the insurance company, um, she posted uh pictures on Facebook. the the prices of the blue chips uh companies are dips are dipping down. So she said it's the best time to buy insurance because the prices are low. So me, I didn't buy the insurance. So I went to YouTube with search on how to buy uh shares of stocks in the Philippines. So this was my uh first encounter with the market.

Uh, so this is back right as COVID is unfolding and the markets are taking a big dive. And uh you approach the markets initially from a kind of a more of a buy and hold uh long term investor.

Yeah, it is. But it it just took only one year. It was supposed to be like that, but uh it's supposed to be like five years, but uh my mental capacity is shaking when it dips down again. So I remember I remove all my um positions.

Oh I see. So you sold out of your um uh buy and hold uh type positions that you had.

Yes, exactly.

I I see. Ca'cause you were presumably wanted to take some profits or at least avoid uh

Losing.

losing some of the gains. Yeah. So did you have another area that you wanted to go into? Did you just say, Hey, I've gotten some profits. I'm good enough. Uh let me just pull out. And I don't need to, you know, interact with the financial markets much anymore. Or did you have a a different area that you wanted to go into?

No, no, the the thing is the reason why I became a trader it's because of that. When I bought it from uh it was uh 2.8, the stock was in 2.8 and it should up to 19. So I didn't solve it. Well that that's the problem. So it went in when it crashes to seven in just one month.

And uh it damaged my uh mental capacity. So I decided to become a trader to to know to know what happened or what did I do wrong because I should have gauged a lot.

I see. So that the catalyst, the volatility in your long-term holdings um uh actually was a catalyst to get you into trading.

Yes, it is.

I see. And uh did you have any kind of early strategies that you focused in on uh early on uh What were you influenced by? Like um fundamentals, I mean technicals, like kind of what type of technicals?

Um I was using before when I was a little bit more than a little bit of a starting MA bounces like and um R S A range trade. I also using divergences and I was like hopping strategies again and again, which is normal for a beginner too.

Mm-hmm. Uh and you were uh just in um equities uh on the US markets or

Before I was in a Philippine stock market, then I ventured to US market and I trade like cryptos, could anything, like commodities, but there's no luck with it.

I see. So you traded uh you traded a variety of um instruments. And like what would uh be the catalyst to get you into a trade? Like what were you looking for to buy and what were you looking for to sell?

When it bounces to like 50 MA and it breaks out, I started buying. It's like other the it's the other way around because it's like you're I'm buying when it's in a downtrend. So it should be like a short as a short sell should be. And I'm not having any stop loss before.

So these this early trading, uh, where you say you didn't have a stop loss, what did you experience during that time?

It was devastated because if I cut my losses it's too late already and it it will damage my psychology also. And um it I blew a lot a lot of a cans already.

So you got caught in the often too familiar trap that so many investors or so many traders experience by holding on to your losers um because the pain of getting out of that position was greater than the pain of holding onto it.

Yes, it is. And much more the what do they call this one? The the leverage. Because in the f if you're trading the Philippines, there's no leverage. When I went to US stock market, there is a leverage like six times your uh your equity. I just blew out some a lot of accounts and I still remember I was always like crying in my bed like

Oh wow.

No. It's it's too bad for me, for my mental health also.

So just curious. So in 2021, uh you started trading uh and How long was this period of um not having stop losses, you know, buying the dip and holding on and and seeing your accounts blow up?

It's just it's it it will be just a year. In twenty twenty one. So when I got a lot of experience building up accounts, so I was uh much uh disciplined now than before. And uh whenever I take a trade, I have my stop loss already.

So uh when you were blowing up your accounts, how did you get back in the game? Did you just uh save up money from your jobs and and uh open up another trading account?

Yes, I'm always depositing my my money into the brokers, then I start trading again because I know in myself that I can I can do this and um there's no turning back.

So despite blowing up your accounts, you had the determination and the confidence that uh someday you will get this. Uh and is that accurate?

Sí, sí, sí.

I see. And so during this process of of of uh turning yourself around, did you read any books? Did you um you know, watch videos? How did you educate yourself?

Okay, I bought a course in the Philippines and uh I learned the strategies, the psychology, and um this was after I blew a lot out of accounts, so and that like in that course. I learned a lot with my with my trading, my strategies.

Uh share with us a little bit about what you learned.

putting stop loss um the structure, the trend. the support and assistance, which is very important. The the risk management, which is also very important.

Elaborate a little bit on um you mentioned there was no turning back. Tell us a little bit more about that.

Yeah, the thing is um I have a dream before that to become an accountant, but um it was like shattered because uh in the Philippines you have lesser salary. So I went to UAE to work is uh in sales so that I would have a lot of income. But the thing is uh the position is not there. So I was planning to have better career, like to become a a trader, which is very um possible if you are just if you are going to be a lot more confident in your trading and if you have a lot of uh dedication.

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Mm-hmm. Uh did you have any kind of role models that you looked at or did you know anyone uh in the trading sphere? Any friends, family that uh did this?

Uh no, uh I don't have any connection with the with the like financial markets or anything. Just w by watching YouTube like while you're trading or like Meet Barak, that's what's my uh you know, like my mentors.

I see mentors. Did you have contact?

Sure, sorry how about that.

Oh, your teachers. I see. I see. Well, speaking of mentors, um, did you have anyone or did you know anyone in the trading community that uh was able to you were able to talk with uh and or hold you accountable?

No, nothing at all. It's just me in the market.

So as you take this course and you start implementing the things that you're learning from this, uh describe to us a little bit about what changed in your trading.

the mistakes that I've got for when trading like If the candles doesn't close above, I will not take the trade. the discipline in the candles, the discipline in the uh risk management. uh race only one percent per trade. The psychology within every trade was once you once every trade you need to journal anything, everything.

Mm-hmm. So you're keeping track of of each trade you make and why you make it, right? And so you you established a fair a a discipline around both getting in and out of trades when they cross certain technical indicators, certain moving averages. Is that uh w could you break that down a little bit more?

Actually right now, uh I am not using any indicators anymore. Just press action. My charts are very clean, so I guess if I'm gonna be using indicators, it's it's lagging indicators, so I focus much on the price action.

What made you move away from using technical indicators to just price action?

Uh it's because of my experiences that we have some strategies, which is only for per candlestick. Like there will be some range with the candlesticks. If it breaks up, I'll start buying. And if I use some indicators, it will give me some uh false alarms, something like that.

So you got a lot of false alarms in the past using the various indicators?

Yeah, like the MA's if it it's if breaking and then I start buying, it breaks down again. So it was uh the depressing.

Mm-hmm. And uh how did you select the kind of stocks that you uh wanted to trade? I mean, where did you find them?

Uh I have uh parameters uh b in ab on my every trade and if you talk about the competition. Um I'm using uh two strategies in my competition. In the competition, it should be gapping stops because gaps indicate strength.

We'll we'll get to the competition in just a moment. Um that back when you're trading. So you traded for how long did you trade uh using uh technical indicators?

I would say I was trading focus in like for two years. The investing was like three years ago. So

So when was it that you transitioned uh away from moving um uh from using indicators to just price action and I the uh inspiration to do so was from your From your group?

Uh it's it's my own decision to not use them. I was started using without any indicators last year because if I've yeah, if gonna use any indicators, it's cool up my parameters.

Go into a little more detail when you say uh you just use price action. So what do you give us a typical example of um How you find the particular stock that you're that you want to trade. And are you trading a day trade or are you swing trading?

I'm day trading and I'm also swing trading with another account. Yeah. My strategies are like consolidation breakouts or breakdowns. Sometimes flags or some head and shoulders.

Okay. Uh so when you say uh for example consolidation uh breakouts, so what does it look like on the chart? During what time period? What are you looking for?

I'm looking at the first minutes of o opening up the market, like three to four candles consolidating in a range. So once it breaks out, I'm started buying.

Okay, three to four candle. What time frame are you using?

One minute.

Okay. Interesting. And so do you hold your positions overnight or is this just uh just in and out same day? You you did mention about uh subswing trading as well.

On my personal account I was using only one is two one, so I'm just I'm I'm trading like for 10 to 15 minutes per day.

Uh ten to fifteen minutes, that's the time that you're trading per day, or you're using a ten or fifteen minute uh chart.

No, uh one uh I'm using one minute and I'm f I finished my trading in just f ten to fifteen minutes.

So how is that? How how are you able to um trade for such a short period of time? What kind of metrics are you looking at to get in and get out?

Yeah, it's just one is to one, one is to one relation and I'm good. I'm good for the day.

Oh, uh one for one. So you you risk a dollar and uh your target is one dollar profit, is that? I see. Mm-hmm.

So that

Yeah. What what motivated you to join the training contest?

Uh the thing was I have only small account which is I had the uh trade the pool. It's only 20k. So the motivation was to win the contest so that I can get the 260 account. So I started planning and what's my risks are, my my stocks are to trade.

Oh, wait. So to be clear, are you saying that you had already been trading uh a twenty thousand dollar account? With Trade the Pool, is that correct?

Yes, it but it's an evaluation still.

Oh okay. So uh so you were going through the process of of a twenty thousand dollar evaluation account.

Exactly.

And if I understand correctly, if you passed that$20,000 valuation account, then you would be given$20,000. house money to trade. Is that

Yes, it is, yes.

I I see. So you joined the trading contest so that you would have a shot at winning the um two hundred and uh what, fifty thousand dollar uh account. That was your kind of motivation for joining.

Yes, because for me it the thirty K I can is too small for you know for me. So I've tried to win this thing. So I got it. I won the competition.

Well, good for you. Uh so take us through the journey, this twenty one day journey of this trading contest and what was it like? you know, uh each week that you were in there and and what did you do? Like kind of your strategies and what you traded?

I use two different strategies in my in the competition. First was I was trading gap stocks, gapping stocks, because gap indicates strength. But before all of that, I have some parameters on picking my stock. Which is very which is for me this is very important. So the parameters on each stop. It should be in an uptrend or in a downtrend and it should be in uh mid mid caps or big caps that moves ten percent to twenty percent a day. So penny stock is a big no for me.

I see. You're done trading for this uh contest and for your personal account or are there differences?

Uh it's uh it's the same as the person in the camera.

Oh got it.

Yeah. But in the first four days it it's not working at all. I it and uh it resulted in mo in almost like eight K drawdown in the first week.

Um, why do you think that is like reflecting back, uh, what was it uh that caused this big drawdown? Had you used this strategy before?

Yeah, yes, I did. The problem was I was um counter tr uh counter trading. Like the stock is moving higher, but I still keep on So I realize I need to change my strategies from uh gap, gap, gap and go strategy to buy and support uh buy on support and short on system strategy.

I see. And uh so this new strategy that you're transitioning to, uh, had you used that strategy in your personal count uh prior to the contest?

Yeah, that's one of my uh playbook. So So I changed to that to that strategy. But that strategy has uh one is to three, one is to four ratio.

Okay, so you increased your uh risk reward ratio from one to one to three to one or four to one?

Yes, yes, yes.

I see. So you're trying to let your win winners run rather than just selling out. Um

So at the second week, uh the the the bad part was I made an object I made an objective that I won't sell unless. or until the platform will close it by himself. So there was no taking profit. So I have four days of drawdown. So on that Friday, I shorted the banks. I short near the system in the resistance and in just 15 minutes. I was in positive 20K, but I didn't close the trade.

Well, uh aren't uh the rules of the uh trading contest. Isn't it just day trading? Aren't you supposed to close your trade by the end of the day?

Yes, uh I was using the platform uh automatic cell. So

I see. So you were uh you were holding on to the trade and then you just allowed the system to automatically sell you out uh by the close of the day. Is that accurate?

Yes, it's accurate.

Oh, okay. Okay, great. So you were you long or short, the bank?

I shorted the bags, which is the P A C W.

Mm-hmm.

Which is uh from eight K drawdown and I was in after like fifteen minutes, I was in twenty K, positive twenty K, but I didn't close the trade on that on that gate.

Uh, were most of your gains uh as a result of shorting these banks, which had uh had a big drop?

Yes, it is. That's the one other reason.

So was it actually a strategy of yours to let the system close you out? Or did you kind of what was your thinking around that?

Uh that's my objective because if I will sell too early, especially for um for volatile stocks that runs 10% to 20%. That's a place for me that is because I practice a lot. I practice a lot. If I hold them to that position. There's a big possibility that it will go up more.

I see. So was it uh a way of kind of not not sabotaging your own trade by getting it out getting out too early, but rather just hold your winners and then uh let uh let the system close you out automatically?

Yes.

Uh so when you're selecting the stocks uh to trade, are you looking at the big movers of the day in the first five to ten minutes? Uh the big gap up gap ups and gap downs and and you look at the stocks making the biggest moves, is that accurate? And then you trade those?

I was trading the same stocks the same uh the same week because if I move to another stock, the problem is the other stock that you left will move much higher. That's why I'm sticking with the some with my if I have like four watch lists for this week, I will trade it like in a whole week.

Okay, so are you are you saying that you're concentrating your attention on a few select stocks in your watch list and trade uh them long and short uh because you get to know them? Mm-hmm. So then have you did you discover this during the trading contest, or was this um one of your many strategies that you've um uh acquired over the over the year?

On on my day trading, I have only two strategies, which is that gap gapping up and the buy and support and the Sallon resistance. So that's what that's the only two in my arsenal.

Uh is so as far as concentrating your attention on a few select stocks for the week rather than jumping from one stock to another stock that you hadn't you hadn't been following. Did you find that uh this is helpful and you continue to use this c uh idea of concentrating attention on a few select stocks during the week?

Yes, it really helps me. Uh and it as my experience, if there will be an exhaustion. There will be big move after.

Mm-hmm. Describe that when there's an exhaustion.

It's it's like there will be a pause. in the daily. There will be a positive data in once it breaks out in like one hour one hour time frame, it will moves much higher.

So you're looking at this both on a daily chart and a one minute chart or

Yes. One one day of uh one One day time frame and one minute.

Oh okay. So you're looking to trade like give us an example of a of a stock that um fits this parameter um and what you're looking at to describe to us. What what is that like?

It's like uh AI.

Okay.

Mm-hmm. Yeah. It when it has it when it moves higher, then there's a pause. If that gap's up and if it nears the resistance. And if it cannot go through, I'm shorting it.

Okay, so you're saying that if it can't break through the first level of resistance uh after the pop, then you're shorting it?

I'm shorting it.

I I see. So uh you're shorting a stock that hasn't yet broke down, but is has failed to break out to new highs and that it's it's consolidating. Is that accurate?

Yeah, and first uh it's like this. It's it has a big move in the first day. Second day it has a pause it and and doesn't have any highs or new highs. Then at the third day. It will break down.

Okay, so you're you're looking to short uh overextended uh stocks uh for looking for a retracement of part of that gain that it made a couple days earlier?

It's near the resistance and short that.

I see. And then you're setting what kind of risk reward on this retracement?

And the competition there was no profit there was no taking profit because my the the objective was um to not to sell unless the the platform be closed by himself.

Right. So in it sounds like in your own trading account, you um, you know, you can hold for a number of days, but in the obviously in the um the contest, it was day trading only.

They trading. Yes. I'm trading in the first minutes, then I will sell in the last minute.

Okay, so while you were trading in the contest, we you were also trading your own personal account or or not?

When I started the competition I did not trade any more of my personal account, so I was focusing on it.

Oh, okay. So you you put that on hold while you concentrated on the on the the contest. Yeah.

Yeah.

I see. Uh so you won through this trading contest, you won a first prize free evaluation account where you will get funded uh with two hundred and fifty thousand dollars of prop firm money if you pass uh two hundred and sixty thousand excuse me how is this going for you and how is it different from the trading contest?

it will give me a big like big break in my in my career. Like if I have the a big can of geek big can of money for trading, it it will uh change my life forever.

Excuse the last interruption here. This is Tessa. We hope you're enjoying this episode so far. If you love the podcast, Please give Chatwith Traders the best review you can on whatever platform you're listening from. This will help us to keep the episodes coming. Also, if you haven't subscribed to our email list, please hop on to chatwithraders.com and click on subscribe. so we can keep you posted of information that may be of importance. Thank you. Now back to the chat with our guests.

How is this um$260,000 uh evaluation account uh going for you uh right now? Uh because they have different rules than the trading contest, right? And I was just curious on Uh how what is it like? How is what are the differences between trading uh this evaluation account and the the contest?

The what I like about the contest is I can use the full 2K risk per day in one in just one trade. The problem with the evaluation is um I can use all the Like thirty percent on every shade. in uh yeah, in one trade. I can only use thirty percent of the daily drawdown, which is kinda bad for me because I only trade once per day.

Is this restriction um has it pushed you to try to find uh new ways, maybe trade more frequently or trade uh multiple stocks?

For that one, I'm going to, you know, to add more uh bristle reward, like one is to five, I think, or one is to six. If if it's possi if it is possible, but it's gonna be too risky. I'm gonna still um I'm still gonna use the thirty percent, but uh with a higher risk to reward.

I see. So would you say the evaluation account uh is significantly more difficult than the uh trading contest?

Yes, it is for me because there was there is limits per uh like for drawdowns, so uh it's kinda hard.

Uh, do you think that these um limitations in the evaluation account are an effective form of risk management that helps to protect traders from themselves?

Yes, it is, but if you have uh you have better discipline, it's it's better to have no limits because n not all the traders are the same. So Yeah, that's that's my uh g m that's my comment about the the evaluation.

And so do you have um so kind of what is your game plan uh for trading the evaluation account? Uh you you mentioned about increasing your risk reward um to higher levels. Uh is there anything else that you've been thinking about?

Uh actually uh on my uh on my competition account right now, I mean the account that I I've won. I'm currently in halfway to be funded. So Hopefully next month or next two months I will have the I will get the full funded account.

Oh, okay. So you're you're saying you're uh how long is this uh evaluation account uh on for? Like uh what's the time duration that uh you have to to prove that uh

So it has 45 days. So I started last June 16. So I finished two weeks already. So I'm halfway to be funded.

Mm-hmm. And if you do get funded, uh, do you know, do they still have these same rules uh that you currently have in the evaluation account moving forward?

What I know it's gonna be the same as the evalu evaluation account, but I'm not really sure. I haven't been read all the the rules and regulations and the the trading pool, you know.

Some people don't take contests seriously. Uh, but what are your views on that?

Honestly, I was not serious about it in the first place because I was I have the account so When I started to think that um to sixty case of big a big account, I started to focus on it. So it's if you because see, I don't I I don't have any connections and What I can say is there's a lot of traders better than me. But if you focus on yourself, focus on your performance every day, you can win competitions.

Good. So so this experience has been um How how has it been for you kind of psychologically, the this transition from the trading contest to the valuation account? And uh how do you reflect that on your own trading accounts? Like what what what are some of the things that you've um learned?

I learned a lot in the competition. Like I was not taking profits even though I am having like four, four, uh, four is to one already, three is to one, and still not taking profits and it goes down, it hits my stop loss. So I was now putting like taking and taking profits and the near resistance, near resistance. So I learned to put a profit taking thing.

Mm-hmm. Uh anything else that uh you'd like to share with us?

Or advice for beginners like that. if they are listening to are listening to this podcast. If you if you work hard And if you have a lot of strategies already, you need to back test it. You need to forward test it a thousand times. You need you need to remove strategies that is not working for you and keep what is important. Trading is a uh performance game. If you don't perform well, the market will punch you in the face without any gloves.

Mm-hmm. Uh so if there was one thing that you could zero in on, uh uh to what degree uh would you say uh the importance of journaling, of writing down the trades uh as you feel them on that day and then And then reflecting back on them, you know, a day later or or or even a week later. How much did that uh impact you?

See if you have a lot of mistakes, you will learn from it because if you see your dualness, you can track What you did wrong, what you did right. That's the importance of the journaling.

Mm-hmm. Did you also journal um kind of how you felt anything psychological or how you felt about the trade? Because often uh after we write something down, you know, days or weeks in the future or months, we go back and reflect. our mental state is not the same as it was when we first wrote it down. Are you able to capture Or did you try to capture your emotional state?

Yes, if you're too if you're too happy, write it down because it be you will be more greedy on that particular uh day. And if you lose, it damages your mental capacity, then write it down again. So in the next trade video, you'll be more defensive.

Great. So do you have any uh goals in the next uh two to five years you'd like to share?

Uh my long term goal is to quit my job. and get a lot and get a lot of payouts as possible. Well, I want to create my own trading a big trading account so that I can I won't use any uh prof firm accounts anymore. So but before that I need to to reach my short term goals first to um to be funded.

What do you struggle with most in trading?

Um if I'm too happy and if I'm too like depressed. I do trade um more often. So if that happens, if I ha I've I trade three times in a day. I'm not going to trade the next day, so I I keep my discipline intact.

Are you able to share um your trading journey with uh friends or family?

No, uh not at all. Like they don't know that I am trading and um they just know that recently. That I am trading.

Oh wow. Um, how is in the Philippine culture, how is trading looked on as a as a profession? Do are Filipinos um into taking risks and individual uh accomplishments uh like this? Is this considered a uh, you know, somewhat respectable type of profession?

Well, in the Philippines, if you are trading, you're like a gambler. Like they don't see you as a like a professional. They see you like you're having a lot of money because you're like gambling. Something like that.

Mm-hmm. So d does that make it difficult for you to share yourself with uh friends and family because they may uh potentially judge you as not having a a real a real job or not wanting a a real job.

Yes, it yes it is. Do you want me to become a professional? So but if you see it practically in in in in life in the Philippines, in you if you're not having money, you're like you're you're like nothing.

Mm-hmm. So there's uh you're saying there's a lot of judgment uh for those who don't have money? I see. And uh you you experience no problems uh opening up a US trading account uh while living in the Philippines? It's um open and available to all Philippine citizens.

Actually I was in Dubai when I started uh trading. So it was not hard to create an an US account. So it was easy. You can just use your debit account and start trading.

Uh Will Graberville, thank you very much for coming on Chat with Traders. Uh, how can our listeners get in touch with you?

Um I'll be in the Discord in the trade the pool. If they have some question, they can reach me or can they can uh message me via Discord.

Okay, great. Well we all wish you um you know great fortune and good luck uh in your evaluation account and certainly hope you get funded uh be a good example for the rest of us and uh would love to hear. uh talk with you again and and um and see how that process uh all turned out.

Thank you so much for that.

I want to give you a quick update. I just caught up with Gabriel recently and learned that he has passed the prize evaluation account after just two weeks of winning the prize and got funded and now is even ready for payout as he has been making a lot of progress in his trading. He's planning to get an even higher evaluation account to continue pushing and challenging himself to improve. Gabriel, congratulations. Well done and keep going.