I’d been trading forex for a couple of years, I’d lost a couple of grand when I first started, when I really didn’t know what I was doing at all, but after all the initial hiccups and the couple of years study I’d done, I thought it was time to put a foot on the live trading ladder again. I wasn’t going to risk much, I’d been bitten before and now I was twice shy, so my starting capital this time would only be £100, so it would be nothing to get too stressed about.
My Short Forex Trading Record.
I figured that my six weeks of profitable scalping every trading day was enough proof to myself that I could trade and trade very profitably, some of my daily returns on demo had been very impressive, 30% on some days, but better than that I had not suffered a daily loss at all. I’d made some losses of course, that’s all part of trading, you can’t win them all, but not a single day I had been trading had ended up in a net loss, I thought I was the king of forex. I was even thinking along the lines of doubling my money every month at least, after all using some decent leverage 20 pips a day on average would easily achieve this. I was thinking I’m on my way, I’d proved myself, I’d learnt to trade properly I had an amazing strategy or so I thought, it wouldn’t take long to get to my first £100k.
The Disappearance Of My Little Forex Trading Capital.
And so I was prepared, my account had been funded, it wasn’t much money, but the most important thing about this exercise was to prove that I could trade with real money just as I could on demo. I placed my first trade, and it won, a very nice 20 PIP scalp or so, I felt so pleased with myself, my hard work studying forex was coming to fruition, it was going to be a great day. I saw another opportunity, I duly placed my trade, I was thinking maybe it’s a little more risky, but you have to place the trade when the opportunity arises, and of course it lost, I was back down to more or less break even. But this was no problem for me, I was used to this on my demo account I would always end up making a profit by the end of the day. I waited a bit, it was no good reacting to the market, it’s not what I’d been doing, you have to wait until you are calm again, and make sure you’re not getting over excited, but after a while I duly lost another trade. But again, no problem, I’d been here before and it would only take 1 trade to get back to break even or maybe in a little profit, the market makes a little jump of around 20 PIPS, by now I’m starting to lose the plot a bit and I trade against this move thinking it’s just a quick spike, but the market is every volatile and I get stopped out for a loss. So now I’m two trades down, and by this stage I couldn’t really remember if I had a strategy or not, let alone what it was. But I’m thinking all I have to do is calm down a bit and then I can easy make this back before the end of the day, I had proved myself as a forex trader on demo and this shouldn’t be any different, I lost another trade and by now my psyche was probably well out of control. But I placed a trade and it went into a winning position, I had a choice to take the profits and my balance would be just under break even, but I held on too long only to see my trade go all the way back to break even. I was by now totally out of control, the frustration the regret that I didn’t take a profit, time was running out, surely it couldn’t be that my first live forex trading day would end up as a loss, I wasn’t going to allow it happen. And then I do lose the plot completely, I placed trade after trade after trade, and one after another they all lost, at this point I was begging the market for forgiveness, if only it would let me get back to beak even I would never behave the same again. In a few short hours my £100 had turned into £20, and my forex trading career was in tatters, there could well have been a tear or two rolling down my cheeks. You can lose your money quicker than a knife through butter trading forex and this is what I’d succeeded in doing, I hadn’t actually wiped my account out, but in effect that’s what I’d done to all intent and purpose. But the next day I got myself back up and dusted myself down, put it all down to experience and put a lot more study in to it.