When I blew my account and learned a lesson of not be greedy
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When I blew my account and learned a lesson of not be greedy
I'm a day trader. After 3 weeks of paper I started Oct 4, 2006 lives on. I'd been advised by a broker that 10 percent of my acct was a leverage for every trade so that's what I did. I'm a great chart reader, and I NEVER lost 1 trade. I would have as many as 6 out at a time (during news!) == no sweat! Between Oct 4 and Dec 29 -- despite two major holidays I had more than doubled my accout size in 2 1/2 weeks. I'd stopped trading before Christmas, also finished the last one before New Years, so I drew out my U.S. quarterly revenue tax pmt, tithe and a little something for myself. I believed I knew it so I planned to be a millionaire by June at the rate!
Subsequently came Jan 4, 2007 -- The first major unwinding of the carry trade started! Since I had no idea about what the Carry Trade was, I lost 80% of my account that week! What REALLY bit was that I made BIG $and lost it all the following week -- in the US I owed taxes on money I had lost!!!!
The carry trade kept going crazy for the following two weeks, so I foolishly kept waiting for the upheval in the market to be over. Fianlly, a trader on this forem advised me that the carry trade changes might NEVER end -- and that I was leveraging my account all incorrect.
3% shirts per trade he said -- and no longer than 2 transactions (3 in RARE circumstances) at a time -- and watch that pairs! Learn how to deal with IT -- Carry Trade surprises happen at any moment.
I believed it would require a year or longer to make my cash at the rate. But I learned to be conscious of ALL Market variables -- also learned how to operate that Carry Trade sitch both manners by paper trading for the week. I put what was left of my account into 2 accounts so I could hedge, also. I then rode what was left of the Carry Trade rises and corrections up and down all day! With more knowlege and improved methods, I'd made back 95 percent of my account prior to the BOJ raised their interest rates -- despite MUCH smaller transactions -- (but MORE pips!) I have made back and am keeping up a profit and equity development.
My Ahaa second came when I understood that NOBODY can EVER know it all -- there is plenty more to learn from amazing senior traders -- like you guys! Good leveraging is a MUST regardless of HOW juicy things seem! And charts do not tell the whole story -- Market Trends are almost always subject to change!
The BOJ rate shift has evened their market corretions a lot, so my profits have slowed down, however, my profits continue to be stable. I'm glad to accept what I an earn SAFELY, avoid greed and await any other major opportunity that arises.
TG
nice going Tradergurl! Care to talk about your trading procedures?
Interestingly, this ebook caused my first aha moment as well. Actually there were some of them in there. One being... a loss is not a loss until I make it one. Another. . A position is not: one trade at X number of lots. Or how about.... Take (reduce ) your profits and let your losses run.
1. Can be spent, when I know that I have some finance that I don't know what for.
2. My 1st broker is less confidence than me,.... Greedy too
3. That Currency Market can be performed online
4. That there is micro lot
5. There is more can be read on the internet than on the book store.
6. That I survived 3 month in Break even point with doing 1 way commerce.
7. The absolute most important news, is japan interest rate.
8. https://www.cliqforex.com/trading-sy...ng-system.html
My ahaa moment arrived when I understood price movement is arbitrary, there are no tendencies, TA is futile.
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