Ever Blown Your Trading Account?

istuffedup

Recruit
Messages
1
After trading successfully for over seven years, in early January this year I stuffed up by trading larger sizes than normal (partly following my plan based on calculated risks and probability). Had a few other things going on and wasn’t putting enough time into my trading. Had an account with IG Markets and one with Pepperstone. What was really interesting was the contrast in outcomes when there was a flash crash 3rd Jan my time on AUDJPY. Pepperstone account all positions were closed out automatically and I had a very small balance left on my account. IG ended up in negative equity to the tune of about 47% of my account balance in spite of their larger margins and claims about liquidity, not one of my positions was closed before my account went negative. Have tried finding out more about what went wrong and have gotten very legalistic responses, few of my questions answered and am left with AFCA (Australian Financial Complaints Authority) as probably my next step.

Also interesting was part of IG’s response re 3rd Jan was that “each and every client order has to be manually executed by IG’s dealers”. Is this code for their systems were not able to handle the size and speed of move whilst Pepperstone’s were? If the answer is yes, I hope AFCA can establish that as I don’t feel that it is fair for me to cop a large negative balance for their system failure.

Happy to hear fellow traders’ thoughts, suggestions or feedback.
 

Purekiller

Recruit
Messages
82
Of course, every person who works in the market had periods of great ups and downs. Trading, like any other business, is considered to be highly risky, so do not treat it as something unusual, otherwise it will only upset you, just keep working, do not forget to draw conclusions and learn.
 

nahiyar

Private, 1st Class
Messages
782
Forex trading is a blend of ups and downs , no one can say he never face any loss in trading. As we talk about a account blow up it is also almost all beginners. I remember lose my first account more than half amount in just minute. it was due to a weak grip on trading . I hope all others will also learn lesson from loss to do good trading.
 

Kokomaster

Private, 1st Class
Messages
95
As we work in the forex market we draw many n plans and ease prior ones, Here are many ups and downs while trading until we not loose we do not learn the art of risk management. as a starter, I blow up my account once it was a small investment I used high leverage and don't know how and when my amount has vanished. It taught me a lesson to choose appropriate leverage in trading.
 

Spellkiller

Private, 1st Class
Messages
52
Well, frankly speaking, I didn't have any special problems with the account, but my friend once lost almost 70% on one deal. It was a huge failure for him, but I can proudly say that he didn't give up, and within two months he regained his slump to zero. And now he's working even more productively than before. So it's no big deal, it happens!
 

PetrovAlex

Recruit
Messages
32
well, i got kinda greedy and blow out my first account.
I didn't think of the risks and was using my whole capital (so dumb)!
later on i stated to use just 20-25 perc. of my capital, so if I lost 25 - I would have 75 perc to recover, you know.
So far it's working perfectly for me.

But even after all these years, sometimes I want to trade with more money when trading goes REALLY good.
So it's a common disease.
But it's really important to remember your previous experience.

good luck
 
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