Profitsniper007
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Let me preface the story I am about to tell by saying DO NOT DO THIS.
Then let me repeat DO NOT DO THIS.
Me and one of my friends recently embarked on a trading challenge, a sort of trade war against each other.
We both loaded a new account with £500 and it is a race to £2000.
My friend sort of has the edge here, as while I have been trading longer, he has a total disregard for the money (he is a highly successful network marketer and makes massive residual incomes from a few businesses - each one more than enough to sustain his life style)
He got out the blocks fast, trading with insane risk and gaining almost £400 in under a week.
I am a highly competitive person that does not like losing, and especially not to this guy who would be sure to bring it up at every opportunity for the rest of time.
Fearing I was falling behind, I decided to start swinging for the fences and upped my lot sizes, it started OK, then the market hammered me and I dropped down to around £200.
On Thursday I decided to just go for broke, when the euro news hit and eurusd began to rally and eurjpy flew, I bought into both of them, rapidly putting my SL into breakeven and trading well, well outside any logical bankroll roll management.
Let me repeat DO NOT DO THIS.
I ran pretty good, gaining £170 or so in the EU session and then when the US news hit the market in the NY session I shorted USDCAD, I speculated that this news may be bad and since the USD has rallied - anyone any explanation for that move?? - in the couple hours before and price was at the 61% fib on the hour chart and previous structural day resis I went short as close as I could to the 61% fib, with SL just behind the 76%.
On the close of next hour the USD seemed obviously week and since the GBPUSD candle was so bullish, I bought that with big lots sizes.
I also shorted USDJPY and this used up all my available equity - I was all in.
Let me repeat DO NOT DO THIS.
I was on the right side and the NY session was a blood bath in the USD, and by mid Friday, I was almost 300% up on where I had been on the open of London.
Then, pushing my luck a bit too far, I lost one trade and that took away 1/4 of my balance (in maybe 15 mins, how awesome)
At that point I stopped trading, my friend had got on the wrong side of the USD move, being a pretty inexperienced trader, he thought that the USD was going "to the moon" and been buying into the diving dollar over and over, so I was back to being ahead.
I think new traders maybe can have experiences similar to this, in fact, one of the worst things that can happen to a new trader is probably them having some really nice wins.
"Oh, this is easy, I don't see what all the fuss is about, I should triple my trade sizes"
The fact that I gained so much is not the focus here, the focus is that what took me a lot of trades and several hours to gain, I lost 25% of that in 15 mins.
If I had continued to trade in this reckless manor, I would have lost everything.
Let me repeat DO NOT DO THIS.
Winning in forex can be pretty easy, you can get on the right side of a move and if there is a massive push in your direction, you can make a very significant win, but this is a double edges sword.
If it is possible to double your account in a day trading like a madman, it is even more possible to blow your account in couple hours.
My friend is living proof of this, since his account now sits under £100 - I think I will win by default since when market opens Monday, he will probably bust his account, then I will take as long as it takes to get to £2000 with no race on and win.
It is important to understand that trading is a game of patience. Your primary aim should be to protect your capital.
When you are in the markets, if you can't last - you can't win.
Then let me repeat DO NOT DO THIS.
Me and one of my friends recently embarked on a trading challenge, a sort of trade war against each other.
We both loaded a new account with £500 and it is a race to £2000.
My friend sort of has the edge here, as while I have been trading longer, he has a total disregard for the money (he is a highly successful network marketer and makes massive residual incomes from a few businesses - each one more than enough to sustain his life style)
He got out the blocks fast, trading with insane risk and gaining almost £400 in under a week.
I am a highly competitive person that does not like losing, and especially not to this guy who would be sure to bring it up at every opportunity for the rest of time.
Fearing I was falling behind, I decided to start swinging for the fences and upped my lot sizes, it started OK, then the market hammered me and I dropped down to around £200.
On Thursday I decided to just go for broke, when the euro news hit and eurusd began to rally and eurjpy flew, I bought into both of them, rapidly putting my SL into breakeven and trading well, well outside any logical bankroll roll management.
Let me repeat DO NOT DO THIS.
I ran pretty good, gaining £170 or so in the EU session and then when the US news hit the market in the NY session I shorted USDCAD, I speculated that this news may be bad and since the USD has rallied - anyone any explanation for that move?? - in the couple hours before and price was at the 61% fib on the hour chart and previous structural day resis I went short as close as I could to the 61% fib, with SL just behind the 76%.
On the close of next hour the USD seemed obviously week and since the GBPUSD candle was so bullish, I bought that with big lots sizes.
I also shorted USDJPY and this used up all my available equity - I was all in.
Let me repeat DO NOT DO THIS.
I was on the right side and the NY session was a blood bath in the USD, and by mid Friday, I was almost 300% up on where I had been on the open of London.
Then, pushing my luck a bit too far, I lost one trade and that took away 1/4 of my balance (in maybe 15 mins, how awesome)
At that point I stopped trading, my friend had got on the wrong side of the USD move, being a pretty inexperienced trader, he thought that the USD was going "to the moon" and been buying into the diving dollar over and over, so I was back to being ahead.
I think new traders maybe can have experiences similar to this, in fact, one of the worst things that can happen to a new trader is probably them having some really nice wins.
"Oh, this is easy, I don't see what all the fuss is about, I should triple my trade sizes"
The fact that I gained so much is not the focus here, the focus is that what took me a lot of trades and several hours to gain, I lost 25% of that in 15 mins.
If I had continued to trade in this reckless manor, I would have lost everything.
Let me repeat DO NOT DO THIS.
Winning in forex can be pretty easy, you can get on the right side of a move and if there is a massive push in your direction, you can make a very significant win, but this is a double edges sword.
If it is possible to double your account in a day trading like a madman, it is even more possible to blow your account in couple hours.
My friend is living proof of this, since his account now sits under £100 - I think I will win by default since when market opens Monday, he will probably bust his account, then I will take as long as it takes to get to £2000 with no race on and win.
It is important to understand that trading is a game of patience. Your primary aim should be to protect your capital.
When you are in the markets, if you can't last - you can't win.