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Will this account survive the day??

Discussion in 'Personal Trade Journals' started by RahmanSL, Nov 3, 2011.

  1. RahmanSL

    RahmanSL Major

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    I am posting this as an example of very bad money management, and how not to trade the forex.

    ======================================================

    ECN Account started 1-Nov-2011 with usd3,000

    Three days later, 3-Nov-2011, account size grew to usd8,651.83.

    But then, due to greed and impatience, and one too many large lot size trades were placed on the wrong side of market, account is reduced down to usd1,308.66 on 3-Nov-2011.

    In disgust and frustration, 5 short trades were opened and all set with TP at 1.36590 (with no SL).

    =========================================================

    Ok, so now we wait & see whether the TP will be triggered and, if so, how much money can be recovered...i.e if the EUR/USD doesn't head further North and wiping out the account completely.

    Any predictions on the future of this account???


    P/S: Traders are warned NOT to do this at home as this can be detrimental to your account's health.
     
    #1 RahmanSL, Nov 3, 2011
    Last edited: Nov 19, 2011
  2. RahmanSL

    RahmanSL Major

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    The account is still surviving and, as a matter of course, I am posting this as an update.

    I could have closed all the positions when EUR/USD dipped down to 1.36888 and bringing the account back up to usd2,627.48 (as shown in attachment screenshot), but I didn't.

    In fact, I couldn't help but "cheated" by adding two more 0.10 SELL positions when price was up at 1.382 & 1.384 level.

    I "cheated" further by changing the TP to 1.32580 from 1.36590 as I concurred with some Analysis that as long as USD is still the preferred currencies for trades, it will still better the EUR in any financial crisis.

    So, I will leave the trades opened for the TP to be triggered...or get burned, again!


    WARNING!!! Traders are warned NOT to do this at home/office as this type of trading can be detrimental to your account's health.

    This type of trading is ONLY to be carried out by well trained professional and seasoned lunatics, who have been harden by many wiped out trading accounts.
     
    #2 RahmanSL, Nov 5, 2011
    Last edited: Nov 19, 2011
  3. along

    along Corporal

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    what happened to you Rahman ? byk duit tu, I think you should trade gold, it's less volatile, safe and easy to handle. you can make a lot of profit with that such amount of deposit. I had been trading with gold for the past two months and making an average of 200 usd per week. but not using a broker. I'm using a company VGMC, I m not sure you heard of it, but I had some investment in there and it's quite profitable as they also paid monthly dividend.
    well good luck with your account, hope you can make it....c u later
     
    #3 along, Nov 6, 2011
    Last edited: Nov 6, 2011
  4. RahmanSL

    RahmanSL Major

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    Hi along,

    If you mean "SKIM SAHAM VIRGIN GOLD MINING CORPORATION (VGM)",...hmmm,
    seems more like a "capat kaya" scheme to me and if you goggle them, there seems to be some controversy over their legitimacy.
    Anywhere, I don't get involve with such schemes, and I don't trust people with my investment money.

    What happened to me???? What do you mean???....
    I could easily have scalp like mad and bring that account past initial deposit and beyond, BUT I am simply trying out a long term trading "strategy" and sticking to it until the end : )

    Sort of like training in numbing my senses and preparing for the day when I can trade totally void of fear of losing, elation with winnings...in effect like a robot lah : )

    Don't worry about the account!
    In all seriousness, the EU zone is screwed-up worst off than the Yanks and so I don't anticipate the EUR/USD rising to the 1.4 - 1.5 mark.
    The question is more like whether the pair will go down to the 1.32 and 1.31 levels, and hence, my little "experiment" to see whether I can not only recover lost money, but making profits from holding these positions until the TP are triggered.

    Yes, I have been busy trading Silver & Gold with my other accounts...but more so on Silver. I buy on the dips, but dare not hold too many open positions due to the present uncertainty of world currencies which can sent metals flying either directions at any given moment.
    But overall, I am rather Bullish on metals.

    All the best!
     
  5. RahmanSL

    RahmanSL Major

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    For those interested, apart from FPA's Sive Morten's invaluable analysis, I also use Dukascopy's Technical & Fundamental Analysis (Technical Analysis :: Dukascopy Bank SA | Swiss Forex Bank | ECN Broker | Managed accounts | Swiss FX trading platform) extensively for currencies trading. There are, of course, a numbers of other sites which I browse through to get further insight on currencies movements.

    For Gold & Silver, I rely heavily on "Silver-Gold prices Live 24 hours" at Silver - Gold Prices - Live 24 Hours, but I also rely on Dukascopy's daily Forex TV reports.

    I am especially impressed with Dukascopy's Sep'11 Trader of the month winner, Vladimir Ptselnikov, who has been trading 7-8 years... realized he cannot work with many currencies and so stick to just few. Risk 30% of capitals....market watch to trade...not be greedy..satisfied with 10-30pips, as more than that is greed.
    He advised to be disciplined Trader as you/we are working and not playing!...this, my friend, is the key word: WORKING

    If we treat trading the forex as our work/profession, then we should become a professional at it just like with our other jobs which we all have at one time or another in our lives.
    If we love trading the forex, then how can we not become successful at it???


    P/S: Scalpers of the EUR/USD should be doing good today since there were, and still have, loads of pips to scalp both on the down & up sides.
    Gold & Silver is also good hunting as market is rather indecisive as the EU and Yanks try to outdo each other in medicating their economies while ignoring the obvious symptoms and the correct medications.
     
    #5 RahmanSL, Nov 7, 2011
    Last edited: Nov 7, 2011
  6. along

    along Corporal

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    I mean when your account reach 8k, you should stop and take a break, withdraw all the profit and start trading again with 3k. Now you not only losing your profit, but you also put your money on the line and the thing that you lost most I think is your precious time. yes time time time you lost 3 days of your time. now it going to take another few more losing days for you to get back to 8k

    I'm losing a lot too when trading forex, now I just start to realize how important not to losing trade. losing a trade mean losing my precious time, because I have to spend another more time just to get back what I'm losing. we can find money, a lot of money but not time, hope you can make it, c u later
     
    #6 along, Nov 7, 2011
    Last edited: Nov 7, 2011
  7. along

    along Corporal

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    About this VGMC, yes it is a skim cepat kaya, but it's ok to try it as it only take 7 months to get back my money. so I just give it a try, now already 2 months, just need another 5 months to get my money back but with the trading I can short the time to 3 or 4 months, just wait and see.

    beside this I also invest with another program. the one that I like most is eurextrade, they look professional, transparent, can check with their daily trading report. They are not doing much only can give a return about 1% daily, but with compounding I can be a millionaire in 3 years :). they have about 40 millions invested capital in their trading account at the moment and currently are doing about half a millions by scalping the market with big size quantities.very amazing job by them.
    another program that is in my list is Singinvest, a Singaporean registered company. this one is just in my list, planing to invest later. just need more time to do some research about another programs.

    Right now I still trade with forex, mostly trade with gold. I try to avoid trade with currencies as it is to volatile and sometime unpredictable too. If I trade I only use difference account with a small money and play it during my free time. I'm planing to continue with my thread, suppose to deposit some money today but I feel a bit lazy right now, so I decided to do it later.

    c u again...
     
    #7 along, Nov 7, 2011
    Last edited: Nov 7, 2011
  8. along

    along Corporal

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    Gold is doing at 1789 at the moment and I think it is very close to end their mid term cycle, expect it to do some corrections, about 80 to 90 pips I guess. What do you think bro. I'm waiting the right time to go short with it.
     

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    #8 along, Nov 7, 2011
    Last edited: Nov 7, 2011
  9. Pharaoh

    Pharaoh Colonel

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    Personally, I prefer gold that I can hold in my hands and deposit into Mattress Bank. That's the one bank I don't have to worry about the financial stability of.
     
  10. RahmanSL

    RahmanSL Major

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    I mean when your account reach 8k, you should stop and take a break, withdraw all the profit and start trading again with 3k….”
    Yes, agreed, and that’s what a sensible Trader with good money management & discipline would do. But, in my case……..! : )

    They are not doing much only can give a return about 1% daily, but with compounding I can be a millionaire in 3 years…”
    1% returns per day??? Why don’t you just do the trading yourself!!!! In all honesty, and really, just how difficult is it to do 1% profit per day??? On a usd10,000 account, that’s a mere usd100 per day which….come on…in fast moving market, you can get that (and much2 more) in seconds.

    For you to become a millionaire in 3 years, assuming your investment is based on daily compounded interest, would require a starting capital of just under usd425 (with 260 trading days a year x 3 years=780 trading days)…..which is pretty good….in fact absolutely and fabulously fantastic…if the investment company does not run away with the money first.

    Maybe our Malaysian government should consider that in place of the NEP (which will be very much cheaper to implement) so that each and everyone one of our Bumiputras…..heck, in fact each and every Malaysians….WILL become millionaires, multi millionaires and even billionaires & trillionaires ALL in a matter of 3 short years.
    Geeze, this will really fast track our nation into becoming a “high income nation” way before 2020. Now, all we need to do is to put this proposal to the government for their kind consideration : )

    But “along” my friend, reality is a far different story…BUT still, the theoretical mathematical aspect does prove it is possible and the probability result shows it to be so….so, it can be so!....and...hehehe...as the Japanese will say, "Asso"....Good luck with your investment, but do keep a hawk eye on that investment company.

    **NB: If the interest is not compounded but given on a flat 1% return on your initial investments, in 3 years your usd425 would become usd3,744…which is very good, but no millionaire.

    Most analysts predict Gold to go back up to the 1900 (and beyond) level by year’s end or early next year.
    Given that there are two upcoming festivals involving Gold loving people (the Chinese & Indian people), these analysts can very well be correct. Throw in the uncertainty of the US and EU economy would make these analysts 110% correct.

    Hmmmm, you want to short the Gold; yah??? Since you asked, I would say not to go in on short as it is too risky as market can turn within seconds. Through past experiences, it’s always much better to go in on long with metals as well as oil since even if market is not with you, the price will go back up due to ready demand of these ever scarce commodities. If you get caught on a short losing side, it can be quite a while (and sometimes next to never like Silver at below usd24) and the only option would be to take a potentially huge loss.

    I am posting longer than I intended…until next time, be careful out there and keep an eye on your investment company(nies); yah!

    =================================

    Pharaoh my friend….I was wondering just when you would pop in and take a shot or two : )
    Yes indeed, physical Gold in hand is much2 better than all that Gold stored at fort Knox.

    Hmmm, come to think of it, by now your mattress must be getting a little bit lumpy and uncomfortable : )
    I kept mine buried in an uncharted island which even I have trouble finding without the help of my hand drawn animal skin map with an “X” marking the location….but I do Google Earth to keep a watch on it.

    Cheers and all the best!
     
    #10 RahmanSL, Nov 7, 2011
    Last edited: Nov 7, 2011

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