13 Nov 2014


I would like to share with you my first experiences when I had just started trading.

I remember my first trade very well. My first deposit had just gone through (£ 100). I had made huge gains on my £ 50 000 demo account, so I felt really confident about myself. 

I opened a long EUR/USD position about 10 pips bellow a major resistance level. I closed it about 20 minutes later for a £ 0.21 profit and felt really proud of myself. 

After having a taste of the sweet feeling of victory. I started opening larger and larger positions, and trading every possible pair. I had an amazing run for about 3 weeks. My account was now up to around £ 600. I was thinking - If I could get a 500% profit every month - Hell !!! This is the start of my new life.

Then a very beautiful trade came - NZD/USD had risen to a trendline resistance and it promised huge return in the case of reversal. I opened a largest position I could have opened with my account. The price didn't stop at resistance of course and just kept rising. I was thinking -how far can it really go? It has to come back down someday, doesn't it?

It kept rising for 3 days until it had swept my account clean. And that, my friends, is how I learned to ALWAYS use a stop-loss. Only some time after I realized that I wasn't trading - it was nothing more than gambling.
I still had one very dreadful job to do - I had to tell my girlfriend, that I'd lost everything. I think that is the hardest part about losing in Forex. How to tell your loved ones, that you've failed?

I didn't say anything for couple of days. When she asked, why I am not trading, I just replied that there wasn't any good trade opportunities at the moment.
And I can only be thankful for what she replied that day, when I finally scraped some courage to tell her, because without her I probably would have quit trading for good. She said - ''Well, don't worry. We knew it won't be easy. We will put some money in the forex again, and you will be smarter the next time''.

And I was. Since that day I've never entered a trade without putting a stop-loss.

I think this is the reason for the huge percentage of the new traders failing. They lose money once and they just don't know how to pick themselves up after such a devastating psychological blow.

I can only look back now, and see how much I've grown as a trader since that first stupid trade I made. And I can only hope that someone reading this article will learn from MY experience instead of going through it on his own.


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