Just like many others, I joined the Forex market searching for easy money. Here is a story of my first contact with Forex. I craved for financial independence and a full control over my life. My knowledge about financial markets was limited to the Boiler Room movie, where coolly-dressed guys earn big money without too much effort. I'm quite a careful person and I don't like jumping in, that's why I decided to delve into this subject before making a deposit. The more so because there was a wealth of useful information on the net. A couple of months devoted to the most popular resources and training with one of the largest Russian Forex brokers inspired me, and so I thought, it was time. It was time to storm into the world of big money and huge opportunities.
«I dreamt about counting huge
bundles of bucks again and again...»
So, armed with deep knowledge, I made my first deposit of 300 dollars. I was overwhelmed with emotions and dreamt about leafing through huge bundles of bucks somewhere on a tropical island together with a charming woman.
I used one of popular intraday trading strategies as a basis for my analysis. My first trades yielding me $100 inspired me greatly and my imagination fed me with rosy expectations. But, I was impatient like all novices. I followed wrong trading signals and accumulated losses. Stop losses were invented by cowards! Fortune favours the bold! Those were my mottos. Without mentioning the fact that I completely ignored risk management. As a result, Forex punished me fairly and added one more person to the "Forex is a flimflam" mob.
«My first bright idea then, luckily,
was that I'm the only one to blame»
But, I could not stop thinking about easily accessible money. Having been upset for a few weeks, I gave way to the first portion of negative thoughts and then started to analyse the situation. Luckily, my first bright idea was that I was the only one to blame. Basically, this idea was right but, as it often happens, it was badly fulfilled. I reviewed my knowledge and concluded that it was quite superficial and I needed to find something that would work one hundred percent. So, I surfed on the net again and I did find the Holy Grail. A news trading strategy did not involve any risks at all. Looking back, I understand now that those agitation visuals, kind of "How do I earn $300 a day without bothering myself", and that "free" knowledge provided by one of brokerage companies instilled a false feeling of confidence into me, that, along with overstated expectations, formed a false understanding of what work in the Forex market is all about. And the "WORK" word in the previous sentence is the main one. I was yet to drop lots of bricks on my trading way.
«Thus, I lost about $3000 when trading»
I invested my trial 500$ and waited for important news releases. I used pending orders to enter the market. My first trades were successful. "It does work!" - I thought. Bit by bit, I was overpowered by greed. I added another $2000 to the $450 I earned before. It was a mistake. Trading risks were extremely high. I was also surprised to learn that even definitely "positive" or "negative" news will not affect the market in a definite way. It means, it can "shoot" to where it is not expected to, and then choose the right direction. And finally, there is such a nice thing as "slippage", which ruined my deposit completely. This incident shook my self-confidence, but it was a good lesson. Thus, I lost about $3000 when trading. But it's not about money. I'm sure that some lose more and some lose less until they change their way of thinking. Having lost quite much money made me fully reframe my trading approach. I began to study more, focusing this time on competent authors. Some quality resources helped too. I discovered such notions as money and risk management.
«The financial market is a tool for
unlimited earnings, if approached skilfully»
I finally realized that overstated expectations hinder competent and adequate analysis. As I mentioned above, Forex is the work that requires great care and thoroughness. But this work is specific. It should not be compared to normal earnings. People tend to think that efforts and time spent doing some work must be rewarded proportionally. But the market works otherwise. You can't simply aim to earn at least $100 or a certain number of points a day. The time spent in front of the computer is not equal to the money you earn. You may have been waiting for a good trading signal for ages, but if it occurs, it will be worth it and the market will reward you generously. Don't grieve lost opportunities. Never look back. Move onward and upward! The financial market is a tool for unlimited earnings, if approached skilfully and reasonably.
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The content of this article reflects the author’s opinion and does not necessarily reflect the official position of LiteForex. The material published on this page is provided for informational purposes only and should not be considered as the provision of investment advice for the purposes of Directive 2004/39/EC.