How I turned £3000 into £20,000 in 6 Weeks

This is a discussion on How I turned £3000 into £20,000 in 6 Weeks within the Discretionary Trading forums, part of the Methods category; Except he went bust numerous times, had a massive ego and blew out his brains. He was just very lucky....

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Old Jun 6, 2011, 10:46pm   #33
 
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Re: How I turned £3000 into £20,000 in 6 Weeks

Except he went bust numerous times, had a massive ego and blew out his brains. He was just very lucky.
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Old Jun 6, 2011, 11:10pm   #34
 
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Re: How I turned £3000 into £20,000 in 6 Weeks

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Originally Posted by Aston1st View Post
Rogue Trader.

How much did you earn trading in your first year of trading ?

How much do you earn per month on average over the last 12 months ?

a: £10,000 per month

b: £20,000 per month

c: £30,000 per month

d; £50,0000 per month

f: £60,000 per month +

presuming, as you have , you are trading full time. How many hours per week do you put in ?

And what clip size or outright position size do you usually trade?

hey dude, numbers are just numbers, the market doesnt care what youve done in your life before - it has no emotion, its not a living entity. Its an arena where human beings act out their beliefs about an instrument or the exchange rate of a currency pair for example. Those beliefs are a result of emotions - and human emotion is very predictable when it comes to money !! always !!

I dont trade " full time " in the sense i stare at the charts all day until my eyes are bloodshot looking for an entry, no, i dont need to - i interact with the market when my edge appears, i " set & forget " the trade in question !! - thats it !!

The crazy thing is everyone wants to do this thing called trading, to make more money/get more " free time " to spend with family/mates, chill more & they end up spending all day " analyzing " and "over-analyzing " everything, staring at the computer - and when theyve got the perfect entry, what do they do ? - MEDDLE with an open position !! - (trading emotionally, instead of analytically) -


" less is more " (Mies Van Der Rohe)
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Old Jun 21, 2011, 7:56pm   #35
Joined May 2011
Re: How I turned £3000 into £20,000 in 6 Weeks

Aston1st, I am just wondering, would you consider to share your strategy?
I am curious how complicated a nice profitable strategy can be as I haven't created/found a good one which suits my personality yet. So I just want to see what to expect.
Thanks
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Old Jun 23, 2011, 10:00pm   #36
Joined May 2011
Re: How I turned £3000 into £20,000 in 6 Weeks

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Originally Posted by russellsaunders View Post
Hi

"How I turned £3000 into £20,000 in 6 Weeks"

Wow. What a story... I'm just starting in Forex and just want to make £150 a day (for now).

To think of doing what you did is both exciting and scary,.
May I give you an advice for starting, never ever think about money when trading.
Making money is a result, not a task (I think).
I have two tasks when trading 1st is to try to be better trader, 2nd is to stay in this business and never give up.
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Old Jun 24, 2011, 12:09pm   #37
Joined Apr 2011
Re: How I turned £3000 into £20,000 in 6 Weeks

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Originally Posted by victor_db View Post
May I give you an advice for starting, never ever think about money when trading.
Making money is a result, not a task (I think).
I have two tasks when trading 1st is to try to be better trader, 2nd is to stay in this business and never give up.
Good advice. Thankyou

Some days however I must admit to thinking that someone out there is just waiting for me to trade so that they can turn the market the other way though !!

Russell
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Old Jun 25, 2011, 9:48am   #38
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Re: How I turned £3000 into £20,000 in 6 Weeks

How I turned £3000 into £20,000 in 6 Weeks...

It's a decnet story and I can understand why people like reading stuff like this but really this is a story about gambling rather than trading.

I don't wish to sound harsh and I'm not trying to upset anyone so please don't take it that way.

Trading large lot size against a small account balance is always going to end up in a wipe out. I'll try and explain why. You see, ultimately, the first and most basic rule for the professional trader is to 'remain in business'. If your trading account is too low / empty you can no longer speculate. In the short term you may well get lucky and experience some rapid account growth. The problem is that over the longer term you will become subject to the 'law of larger numbers'. Most people completely overlook this point (or plain don't understand it) and this is why we have these '90% of traders fail' type of statistics.

In simple terms, when you trade longer term, you expose yourself to random elements which you cannot control. What I'm talking about are runs of bad trades. Even in a simple coin tossing exercise you'll find runs which in theory should be very rare. Chances are your trading edge is quite small in percentage terms especially when you consider the 'costs of trading' aka 'the spread'. It's all very well talking about making 10 points here and there etc but a 1 point spread is a 10% edge so far as your bucket shop broker is concerned. The problem with trading large lot size is that losing runs eat into your margin pretty darn quickly. This in turn means that you cannot maintain your lot size. Thus, when the winning run does occur, you might make back more points than you lost but it's all at vastly reduced stakes and therefore your account balance never returns to the original high. So on and so forth the cycle repeats and your account gets smaller and smaller.

The bottom line is that you need to stake your trades in such a manner that a bad losing run won't cause a reduction in trading size.

As other have said before, it's not about the money, it's about the number of units in your trading account. If you want to be in the business for the long haul then you have to overcome these laws of larger numbers.


Steve.
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Old Jun 25, 2011, 7:53pm   #39
 
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Re: How I turned £3000 into £20,000 in 6 Weeks

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Originally Posted by stevespray View Post
How I turned £3000 into £20,000 in 6 Weeks...

It's a decnet story and I can understand why people like reading stuff like this but really this is a story about gambling rather than trading.

I don't wish to sound harsh and I'm not trying to upset anyone so please don't take it that way.

Trading large lot size against a small account balance is always going to end up in a wipe out. I'll try and explain why. You see, ultimately, the first and most basic rule for the professional trader is to 'remain in business'. If your trading account is too low / empty you can no longer speculate. In the short term you may well get lucky and experience some rapid account growth. The problem is that over the longer term you will become subject to the 'law of larger numbers'. Most people completely overlook this point (or plain don't understand it) and this is why we have these '90% of traders fail' type of statistics.

In simple terms, when you trade longer term, you expose yourself to random elements which you cannot control. What I'm talking about are runs of bad trades. Even in a simple coin tossing exercise you'll find runs which in theory should be very rare. Chances are your trading edge is quite small in percentage terms especially when you consider the 'costs of trading' aka 'the spread'. It's all very well talking about making 10 points here and there etc but a 1 point spread is a 10% edge so far as your bucket shop broker is concerned. The problem with trading large lot size is that losing runs eat into your margin pretty darn quickly. This in turn means that you cannot maintain your lot size. Thus, when the winning run does occur, you might make back more points than you lost but it's all at vastly reduced stakes and therefore your account balance never returns to the original high. So on and so forth the cycle repeats and your account gets smaller and smaller.

The bottom line is that you need to stake your trades in such a manner that a bad losing run won't cause a reduction in trading size.

As other have said before, it's not about the money, it's about the number of units in your trading account. If you want to be in the business for the long haul then you have to overcome these laws of larger numbers.


Steve.
I must thank you for taking the time to post this. I am about to start trading a live account again after a period of 3 months demo trading. My last few attempts at trading a live account have not ended well. Anyway, I've come back with a sound strategy, a good plan, and a decent run on a demo account. However as soon as I started to read this thread my mind immediately thought about upping my lot size, over leveraging and increasing my RR. I'm so glad you made this post as it has really brought me back down to earth and made me think about long term as oppossed to get rich quick
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There was madness in any direction, at any hour. You could strike sparks anywhere. There was a fantastic universal sense that whatever we were doing was right, that we were winning. ~ Raoul Duke
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Old Jun 25, 2011, 9:29pm   #40
 
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Re: How I turned £3000 into £20,000 in 6 Weeks

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Originally Posted by Aston1st View Post
The problem with your friend is all in his mind. Which is where the problem is with the majority of traders.

I so often could flip £200.00 into £800 - 1,000 in a day. Then once I reached £1,500 would hand it all back to the the market. Because some where in my brain I was telling myself that gaining more than £1,500 a day or two is not right or possible for me.

What gave me the break through was to look at :

200 - 1000 as one unit.

400 - 2000 as one unit

2000 - 10,000 as one unit

10,000 - 50,000 as one unit

scaling the size as the margin requirements are achieved.

To reduce risk half the unit's.

Not sure if I am making sense here but it works for me.

I stumble across your thread by mistake, I usually don't read or make any contribution on this board and as you can see that's my first post here. But I always like to read story like yours, it just put a smaile on my face bc I have achieve the same performance like yours but different numbers and different market,currency.

I quoted especialy this post of yours bc it scared me like the hell.....it was like reading myself into your story

the problem and the solution I've adopted are the same you described

hope I did get you right on this, otherwise we me talk different things

But I've gone one step further and added on more adjustment:

As my account grows up I've been added a "Catastrophic level"(based on my risk appetite) and when my account balance drops below that level I bailout no matter what price does and close all my open position. that "catastrophic level" grows up directly proportional with my account grow.

Maybe you personality won't be in compatibility with this minor adjustment and you will encounter resistance to follow it, you must get it in balance with your inner self so to speak in other to work for yourself, hope I'm making any point here.

But I thought to share it with you due to so many similarity between us

all the best!
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