How I lost $600 in 10 Minutes Trading Forex

Losing Money Trading Forex Is Painful

Forex trading is one of the businesses I have been thinking of getting into for some time now. I have been undergoing forex training for more than a month now and decided to test forex trading with real money

When I started trading with real money I was still nervous and afraid to trade big lots, limiting myself to 0.05 lots sizes, with 0.05 lot sizes I realized that I would not earn much, my gains from this lots were $2 and the largest gain from 0.05 lots was about $36. To earn $36 dollars it took me like 3 hours just observing the trends and making sure that am with the trends

I wanted more profit and decided to risk 1 standard lot size to have a maximum profit, I made about $192 in just 30 minutes, with my profit I was very happy and realized that the more standard lots I open a position with the better, what I did not realized is that I was exposing myself to maximum risk. With more profit and winning trades in mind I decided to place two more standard lots of 1, but what followed next was not amusing at all as my opened position resulted into about -$350 loss. With this I lost my already earned profit plus part of my initial deposit. The hard work began and I was to recover the initial deposit lost before aiming for the profit.

It took me about three days to recover from the lost and I was very encouraged to trade even more, with more winning I decided to open more positions, forgetting that I was exposing myself to a maximum risk, believe I lost my account in just 10 minutes. I watched $500 dollars being swept away and all I could do is to watch and hope that there would be a trend reversal but I realized hope alone cannot help you in forex when you are losing due to bad judgment

As I write this article am unable to trade unless I make some deposit to my account. I have leant my lesson and the following are my observation for anybody who wants to trade forex

DO’S

1.       Have a written goal – How much do want to earn per day, once your target is achieved close your trading platform, take time out with other activities

2.       Control your Emotions – When winning trades do not be overwhelmed, and starting making many trades, remember you can lose all your opened position at once

3.       Have Trading System – decide on which trading indicators to use, study these indicators and stick to them

4.       Decide on which time frame to use, when trading with one hour time frame, stick to it

5.       Have some discipline to follow your plan

6.       Be Patient

Those are some few observations made during two weeks trading period that I lost $600, my main objective now is to learn from my mistakes before I get started again, but be prepared either to win or lose money in forex trade. That’s the truth

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Comments 18 comments

Paulipopo profile image

Paulipopo 6 years ago from Abuja, Nigeria

Oderog,

I suggest also that anyone thinking of investing in forex should be prepared to lose all his stake as the business is purely speculative


oderog profile image

oderog 6 years ago from Nairobi Author

Actually it is not purely speculative as such, there are technical indicators that will assist anybody who wants to trade forex, fear of loosing money is what cause failure in forex trading, otherwise I really like forex trading although I started on the wrong footing. The Higher the risk, the highre the profit, thanks Paulipoo


salt profile image

salt 6 years ago from australia

thanks, Ive been wanting to try forex, but thought i would only start with a small amount that I was prepared to loose - incase I lost it. And not try the complicated stuff... your article confirms that approach... tell us how you go

congratulations for working at it!!!


oderog profile image

oderog 6 years ago from Nairobi Author

Thanks salt, am actually learning the forex trading I started with $350, I made $200 on my first week and lost it in one day, after recovering the lost profit, I made about $300. but lost it in minutes because of greed, I had target of making $175 every week which was possible, but instead of sticking to my target after making $300 in one day, I decided to ignore my target and it all cost me everything - to sum it up all discipline is very important in whatever thing you are doing


Midasfx profile image

Midasfx 6 years ago

oderog I have been there, only many times worse. Between a group of my fellow traders, we would save up and invest in forex. Sometimes We would loose the entire amount within the first day of deposit. But after many initial deposits and trying out various systems, We have discovered that trading forex inst that hard. And its only speculative if your stock trader earning a small % lol.

People who do good in forex reap the reward of all those who lost and gave up. So its easy to be winner of forex, just never quit. no matter how many years of training and how much money you will loose. If you NEVER GIVE UP, you WILL NEVER BE A LOSER. Eventually you will find something that works for you. This was our creed.

I wish you the best of luck on trading forex. If you are lost, I have been writing some hubs on forex to help people trade better. Good Luck !


oderog profile image

oderog 6 years ago from Nairobi Author

Thanks Midafsx for your encouraging comments, I actually started well by winning about $400, that is 100% gain in one week of what I started with. My initial deposit was 350 and it took me only one week to double the amount but because of greed and not being disciplined enough to follow my target I lost it all.

Am just getting started with forex trading and scalping with small amount is quite challenging as trend can go against you immediately and wipe all your gains plus the deposit. Actual forex is good but require a lot of practice trading and testing strategies after which one can now succeed in trading forex. Am still practicing and would still invest in my micro account to build it slowly until am comfortable enough to open a mini account

Will check on your forex hubs tutorial, thanks again


Bmystic57 profile image

Bmystic57 6 years ago from Sheldon,Tx

Oderog,I've been trading for about 1 year now.Thought I had it going on until I lost 2,000...that was the end to my account.

Margin call the worst thing,I think that can happen to someone.Anyway long story short,trying to recope my account and start over .A good educational Web site to learn Forex from is . www.babypips.com Have a Great Trading Day!


ForexCashBack profile image

ForexCashBack 6 years ago from Corvallis, Oregon

I myself wiped out my first account. I think its something that we all experience at one point or another. However, I took my loss as a lesson and went back to the drawing board for a strategy. Needless to say I am a much more better trader now, and I have that experience to thank for it!


oderog profile image

oderog 6 years ago from Nairobi Author

ForexCashBack - Thanks for your encouragement, am just getting started trading forex, I lost due lack of discipline and the fact I was just getting started with forex trading


ForexCashBack profile image

ForexCashBack 6 years ago from Corvallis, Oregon

Your welcome! I thoroughly enjoy trading on the forex. Just something to think about but if I deposited $500 in an account I would trade no more then .05 lots per trade(if 1 lot = $100,000). Then when it got to $1,000 I would do .1 lots, and just increase it by .1 lot every $1,000 the account gained. So when your account reaches $5,000 you could trade .5 lots. Sure this may not be a rich quick method, but it could help to preserve your capital. And I never have more then 5 trades open at a time. Just follow your "Do" and I think you will do good! I have a trading plan/strategy and I stick to it. Its gotten me through the good and the bad so a trading plan is vital to have.


oderog profile image

oderog 6 years ago from Nairobi Author

@Bmystic57 - Great and when getting started with forex trading we are just learning and at least one should expect to loose some money. I have learnt a lot from babypips and gaining more knowledge everyday

@ForeCashBack - I was actually trading 0.05 lots for the first week and on my second week I tried 1 standard lot which the return was great in some few minutes but again its what cause me the $600 dollars. I think we have to stick to our goals in forex trading, if at all I did this by now my account probably would have been intact who knows. Am just learning and coming up with some system that I would be able to use while trading. I realized I did not have any system in place and was getting confused with all the charts(m5,h1,h4) When looking at the chart somehow I did noticed that in most instances they were not giving the same trend. Otherwise thanks


GUS 6 years ago

I am by no means a professional trader I am struggling to learn the complex way of the forex trading, I am always amazed on how people want to learn something as complex as FOREX trading in a few months. I believe the FOREX is complicated because you are fighting the market as well as your self by this I mean you personal insecurities and sociological barriers. In my personal experience my first year I started slow 175$ and lost it second year 175 and lost it the third year I lost 75 in my eyes I was improving my wife still see it as a lost. My 4th year I lost 175 by the middle of the year then I did a mayor change to my trading strategy and found a plan that work for me for my sociological profile I am a risk avert person is hard for me to take risk and if I fail is devastating for me any way after a change to my strategy I was able to turn around my 4th year in to my first profitable year I got the 175 back from that year and had a positive cash of 215 (it fled good to pay taxes on my profit) as we speak I am 88 dollars to break even I had achieved this on a laps of 10 moths about of 75 dollars a moths is my average. I am still afraid this is just a wining fluke I want to become consistence (the risk of failure I talked early) I feel that I am in the right track by the way 1 out of 3 of my trades are bad about 10 pips loose never more that 10 that is my rule on my trading plan. My Point is you have to take time to learn the market that is the easy part and then to learn your self that is the hard part. Start small and then work your way up it takes time to master anything. Good luck.


oderog profile image

oderog 6 years ago from Nairobi Author

Thanks GUS


holdon100 profile image

holdon100 6 years ago

hey

man you not alone a lot of guys been through this

what do you think about auto trading


FOREX NINJA profile image

FOREX NINJA 5 years ago

In forex, the better the gambler, the higher the risk of losing your capital. One funny thing about this, is that even if you had made the profit, you will still not quit gambling. So some how you should be happy for the lose because if it never happened now, it could happen when you had invested big.Within 10 trades,7 gains with 3 losses is still a good gain. so its left for you to know if you were really trading.


galactuschad 5 years ago

i started learning forex exactly a month ago.. before 2 months i had only overheard what it was.. learnt it and practiced for just 3 weeks.. started my real account with just $100 and i was offered a bonus of $50 for starting a new account.. i lost $45 from the very first trade in my life and it was a very good experience for me.. started recovering, and my account balance was $299.69 after two days.. and no it was no luck, i made that through 180 trades which was quite hard work.. on friday i had a winning trade and i din wanna close it either.. damn i was just a beginner who didnt know that the markets close friday night and that once it opens on monday the most currency pairs start with some gap.. monday morning i discovered that my trades have gone up side down.. by afternoon i lost $230.. and it had only been 3 weekdays since i started.. then i had an account balance of $70.. started recovering again and i felt really harder than the first few days.. and came the friday.. i had some losing trades but i knew they were coming back though.. then i suddenly remembered what happened last friday.. i knew that since my account balance was low, it could get even lower and i could lose my account easily.. so i had to close all the trades costing me $40.. monday morning i had $47 and during the first half of the day i slowly could make only $2 and i knew it still was enough for a balance of $47.. i opened more trades and in the evening and happened to go meet my girlfriend and while i was on the way back i saw through my mobile that my account was almost lost.. and yeah it went to loss :D

and i learnt these lessons:

1. forex trading needs your attention.. you pay your attention, it'll pay you

2. make sure you close your trades before getting a long break

3. the sizes of your lots are obviously dependent on your account balance inlcuding your confidence as well.. but dont keep a big lot for long expecting a reversal of the trend.. big lots are to make sudden cash.. if it doesnt go your way, close immediately or watch your account go to waste.. the best thing is never to open with big lots until your account is quite steady

4. open as much as trades you want but only if you can wait to watch all of em come to profits.. you know how much time you can spare so do open trades accordingly.. once you get to know that you have to get going to a meeting or a class in an hour or so, dont ever open more trades.. then its all about closing only.. sometimes you cant wait until then, so you open even more trades which makes u wait for them as well.. just the same as number 2.

5. there is a right time to open a trade as well as to close a trade.. sometimes the right time to close a certain trade is when you have a loss on it.. but you made it less badder than it could have been

6. taking risks is of a game.. but forex market is not a casino and trading is not another game, its an art.. a market.. where you have to earn, not play and win

after all im just an 18-year-old loser whos lost his tiny little account and tries to give others advices :D take the good stuff in my comment, or just leave it

thanks and good luck for everyone!


forexpulse profile image

forexpulse 4 years ago from Califorrina

Thanks a ton for your efforts to have decided to put these things together on this web site.

www.forexpulse.com


Hamza adam 4 years ago

First thanks oderog.I am going to try to save you time and money and get to the point. You are all losing because you are over leveraging the account, yes you are.

Professional traders trade no more than 5 to 1 in their total positons to stay in business, why? because they learned from their mistakes of over leveraging.

When we over leverage, even if we have a guru strategy, it won't work. Why? b/c we won't have a chance to apply the strategy as it suppose to after 1 or 2 losses if the market goes against us with those big lots.

Try this, open a demo account and for every 1000 dollar, open a position of maximum of 10K which is 0.1 which is $1 A PIP. Trade this way and you will see the results of your trading and I swear you will never get a margin call. um that doesn't look much but at the end of the year, 1000 dollar account can turn to over 60K with only 20 pips a day which is an average of 100 pips a week. This needs lots of patience to do it.

Money management, what is it? well it calculates how big is the position after you figure out the stop loss, and where is your target. DISCIPLINE is what you need so you can apply money management as you PLANNED. PATIENCE which is why you need to wait for your strategy to give you a signal to enter, exit and stop loss.

If you apply this rules, believe me you will all see a big difference. Forex trading is not as hard as people think it is, it is easier than stock market, but because of 100 to 1 leverage, it is making it harder for people to swallow their greed. Stock market can go up to 8% from high to low of the day while forex market only goes 1.25% as average, but with 100 to 1 leverage, it makes it 125% :), that's where the trick is and the 5% of successful traders know about it and they have a lot of patience to grow their account slowly while opening bigger positions and their profit grows up without over leverging. I hope this helps.

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