When I started trading, my friend was pretty clear with me : “forex trading is very easy, you can make a lot of money in a very small amount of time”. The best thing for me was that – although this sounded too good to be true- he had the proof to show that this was possible, he had taken a 500 USD account to 5000 USD in less than 2 months. For me this was like a dream come true, finally a way to invest and become rich starting with a very small investment. I saved my first 500 USD and opened up a foreign exchange account to start my way towards financial freedom while my friend was already managing more than 50K in money from different sources. Another friend also started to trade with us and managed to take his initial 200 USD investment to 1000 USD in less than a month by following the simple trading strategies our other friend had been teaching us for the past few months.
My account was also in very good shape. Through the use of his trading tactics I was able to turn 500 USD into nearly 800 USD in about 2 weeks…Then reality kicked in. For those of you who are experienced traders or who have read my blog for a while it should be evident that we were trading with a very large market exposure without even knowing so. Evidently, we started to lose money as the market started to show us unfavorable trading conditions. As the newbie traders we were we increased risk taking as the weeks passed ending with a “win all, lose all” situation in which I decided to bet my last 50 USD to make them 500 USD or lose them in the process (of course, I lost them). My other friend had 900 USD and decided to bet them against an NFP; he lost all his money two hours after the news were out. The story of our “trading father” was not much better either, he ended up taking his 50K (which was managed) to 20K only to then get it back to 55K after some nerve-wrecking trading experiences, in the end he got lucky but after these events he said that he would never trade the forex market again.
To this date, I am the only one of us who is trading successfully and I can say with confidence that it was because I wasn’t afraid to accept my problems and tackle the issue again. After losing this account, I lost another and only then did I start to look into forex trading with different eyes. I realized that the gold mine I was looking for which could turn my 500 USD into a million in four years just wasn’t there and I decided to analyze the problem and find a solution. I looked for people who had been trading the market for more than 4 years, people who managed accounts, etc to know how much money they were making and what I was likely to make with the capital I had. The results were both discouraging and encouraing since the forex market could definitely be a better investment than traditional stocks, mutual funds, etc, but it was much harder and much less than what I had been promised in the beginning.
I believe now, after having my own experiences and reliving these events through the tales of others, that you should tackle issues yourself. You should always have in mind that people will try to tell you that this or that can be done but usually these claims will either be short termed and unrealistic with no substantial evidence that this can be done in the long term. In the end you should always develop knowledge and analysis yourself, do not take my work or anyone’s word as carved in stone, search for your own answers and in time you will find them. Certainly, it will be a GREAT effort and no product you can buy will get you there. If you are lazy and you do not want to process all this knowledge yourself, the market will punish you. While others know what is happening and learn from the events that unveil you’ll be like a blind-folded man, without the slightest opportunity of looking beyond your nose.
Finally I can give you a wonderful piece of advice which gathers all these experience. If there is something you think you can do to improve – do it -, because if you don’t, someone out there will do it and that person will have an edge you don’t have and that person will take the money you will lose. Take out of your mind that forex is for quick riches, that you can simply set and forget an automated system and see the profits roll in or that you can just buy or sell the red and green arrows of an indicator to be profitable, it won’t happen. It is much more than that, something which is terribly obvious and at the same time extremely difficult to understand. Once you do, your true journey towards financial freedom will start.
If you want to get an education regarding automated trading systems and you would like to learn more about how you can make profits in the market with realistic profit/risk targets developing your own sound trading systems based on knowledge about the market please consider buying my ebook on automated trading or joining Asirikuy to receive all ebook purchase benefits, weekly updates, check the live accounts I am running with several expert advisors and get in the road towards long term success in the forex market using automated trading systems. I hope you enjoyed the article !