Trading Forex is a cool way of making extra income if things are done the right way. Especially for new traders that usually target few pips a day, with the use of technical and fundamental analysis for their trade decisions.
On a serious note, I don’t have any blame for my trainer, Dickson. He was good at explaining the way Forex trading works, in my opinion.
However, he taught me lessons via Whataspp for a week on what to do on Meta Trader 4 (MT4), and he also gave me web links plus some Youtube videos which I watched. I think risk management was my major problem.
I remember vividly, at the time I executed my first trade on demo account on MT4, and made profit for the first time. I thought I was controlling the market price with my mind.
With excitement, I hurriedly press the “Close Trade” button on the trading app on my mobile phone as I saw my account balance increased with $4 profit within a couple of minutes.
But now I know better, that I need a good trading strategy. With proper risk management, I must ensure that I analyze the market technically and fundamentally before executing my trades going forward.
Basically, a good trader ought to review the economic calendar for news release and cross-check this review with technical market price analysis before making a trade decision.
Trading Forex is like crossing a highway. You’ve got to check either side of the road before crossing, else your account balance may suffer sudden death just like the way mine did.
Indeed, money does not come easy. Little wonder, the idiom says “a fool and his money are soon parted”.
I now know that researching and developing my own trading style is far better than getting trade signals from unknown quarters.
Wait a minute, and come to think of it, social media Forex signal providers are mere humans just like me and not robots.
This particular signal provider contributed partly to how I lost my money if not fully, as I was so confident that he was a kind of “Forex god” and that he can never give me a wrong trade signal.
“There is really no need for me to do any paper work of some sort, this guy is definitely a Forex guru” I said to myself.
“With all the mouth-watering daily trade profits he posted on his Free VIP chatting group wall, I will soon become a millionaire if I follow him with keen interest”.
Just like when you are about to start fitness exercise, the slogan is “No pain, no gain”. I have made up my mind to learn from my trading mistakes.
My little experience has just taught me never to believe all these fake traders that post screen shots of massive overnight gains. I now have the zeal to learn everything I can possibly learn on Forex trading.
You can call me Faith, the youngest female Forex trader on the planet. I am simply sharing my story, so that the young folks out there can learn from my mistakes.
I graduated from Quasimodo University where I studied computer engineering.
Barely a year after my graduation, I got a job as a Relationship Officer with a Travel and Tour company.
My monthly income was dependent on the number of clients I was able to bring to the company.
Convincing clients to buy travel ticket was a hard task for me and with the global pandemic, life was hard for me as a Relationship Officer.
It dawned on me that I might find myself on the street very soon, and I became more worried, as I need to take care of my bills.
I was browsing Facebook app on my mobile phone one sunny afternoon and I stumbled upon a Forex trading advert.
What I read on the advert made my heart leap for joy, as traders and investors were promised and assured of a daily profit of $500 for every $50 if they invest in Forex.
“Oh my God! This is too good to be true” I said to myself. “That is massive! I have been wasting my time trying hard at convincing clients to buy travel ticket”.
I clicked on the advert link, and this took me to a group chat room on Whatsapp and the group administrator gave me a warm welcome with a promise to train me on how to trade Forex.
The training was quite complex for me at first, as a new trader and it lasted for a week. At the end of the training week, I was able to perform basic tasks like clicking BUY or SELL button on a demo Meta Trader 4 app.
I was told to open a real account with a Broker, and that I can fund my real account with as low as $10 to starting making profit.
Without wasting much time, I opened the account as directed and I funded it with fifty dollars which was all of my savings as at then.
Afterall, I was going to make the same amount in ten folds within 24 hours as promised in the advert.
I was so happy that finally, I will be able to buy a posh car, rent a big apartment, take good care of my parents and buy whatever I like.
“I need money and if I can make 500 dollars a day with this new business of mine, I will be a millionaire in a couple of years”.
My Forex trading trainer was a great guy. Dickson trained me for a week for free on condition that I will pay him the training fee as soon as I start to make profit from my trades.
I promised to fulfill my part of the deal, and I was prepared to reward him with an extra token for his kind gesture.
We concluded the training on Saturday, and I couldn’t wait for Sunday night when Forex market will open.
I needed to take things to a higher level, so I searched for Whatsapp Trade Signal groups on Facebook.
The group descriptions says “New members will receive 5 good trade signals daily for two weeks before joining our VIP room”.
I like free things, so I made up my mind to spend just two weeks in the group. After two weeks, I will exit the group for another new group.
I was so confident and certain that I was in the right place. “After all, signal providers have more experience in this game than I do” I said to myself.
By Sunday night, shortly after the Forex market open, I became restless and I was unable to place a trade as price on the trading chart ticks up and down. I checked on the Whatsapp signal room and saw that fresh signals have just been posted on the group wall.
The first signal on the chat group wall was a Long trade call on EUR/USD.
I opened a Buy position on EUR/USD with 0.01 lot size, in line with the recommended lot size for a $50 account by my Forex trading trainer.
My already tensed nerves suddenly felt relaxed as I saw price jumped up on the chart, as the red colour of my trade result changed to Blue.
I monitored the trade for some time on my bed, till the moment when I slept off.
I woke up the next day and what I saw made me happy. My $50 account balance has increased to $62.
“Just take a look at me. I was busy selling travel tickets on the street in order to make money… little did I know that the money I was looking for is right here in my pocket” I muttered to myself.
I closed the trade and smiled at my $62 Forex trade account.
A couple of hours later, I saw a trade alert on the Whatsapp group on XAU/USD, and the signal was to SELL Gold versus dollar.
“Yes, I can increase my lot size to fast-track things. Using 0.07 lot size on XAU/USD will be a good idea”, I said to myself. “But on a second thought, I have a long way to go with just $62, when my daily target is $500”.
With 0.07 lot size, I placed a short position on XAU/USD.
I was certain I made the right decision by following the signal from the Whataspp group, that I closed the Meta Trade 4 app on my mobile phone. I dropped the phone on my bed and turned on the TV.
At 12:49pm, I decided to check my running trade, and what I saw made me scream.
My trade account balance has increased to $428, and it appears as if it will increase further.
Gold versus dollar price went down South on the price chart that afternoon, and this made me a huge profit.
I dropped my phone on my bed, went to the kitchen to prepare a delicious meal for myself. I want to celebrate my huge profit with a good meal.
It took me about 30 mins to prepare the meal. While cooking, I was tempted every-now-and-then to rush to my phone to check the status of my running trade.
I resisted the temptation. My account balance can only increase further with more Blue profits.
An hour later, with smiles all over my face, I picked up my phone to check my new fortune.
I opened the price chart and saw that price had gone far up North on the chart. Price rose so high that the height really dwarfed the initial price dip.
At first, I couldn’t find my trade on the price chart. I also saw zero account balance on my Meta Trader 4 app.
At that moment, I almost fainted. I was sweating for the next five minutes.
“Oh no!” I muttered severally to myself. “I am in trouble”.
My body trembled uncontrollably.
My $50 capital and all the profit made is gone.
I went into depression almost immediately. Later that day, my phone rang. I picked the call “Hello, how was your day?”
Dickson was on the line. “My trading account is blown, Dickson. I am depressed right now”.
I explained everything to him on the phone and he encouraged me never to give up. “I strongly recommend that your trade on demo account for now” he said.
He reminded me of the lessons he taught me the previous week, on Risk Management in Forex Trading.
“Never open trade positions bigger than what your account can handle”, he said.
He promised to loan me the sum of $50 after I must have practised extensively on demo account for a period of 4 weeks.
I thanked him, we said goodbyes and he hung up. I felt a bit relieved after my conversation with Dickson.
“I wont give up now” I said to myself. From now on, I will make my research on the internet, and on Youtube. I must research on articles that can improve my trading skills.