September 1, 2015 at 5:58 pm
Hi members! So here is my story…..
I started trading when I was 18 years old which was the legal age the broker told me I had to be in order to open an account. I opened the account with a broker called TradeRush. The reason why I chose this broker was because of a video I saw on youtube promoting this technique called the martingale strategy where all you had to do was place a trade in any direction and if it lost you doubled up your investment in order to make up for the loss in the next 60 seconds. The video showed the user making large profits and was very interesting to me. It didn’t seem like a bad idea at the time but looking back I was very foolish to believe that making money from trading would be that easy. My father traded stocks in the past and forex, he warned me that this was not a good strategy for trading and that eventually I would lose all my money. I really wanted to prove my dad wrong and also prove to myself that I could do it so I opened an account and started trading the strategy immediately. I had no knowledge of news, trading platforms (real strategies) nothing. I was simply gambling, and you know what? I made a lot of money that day. I actually took a 200$ account and made it all the way up to 1k. I bragged to all my family members about how rich I was gonna get including my father. Anyways so the next day I started trading again and lost my first trade, but that one loss brought my account down to 500$ after being up 1k. The thing with the martingale strategy was when it worked it was great, but even one loss could absolutely destroy your trading record. So this was not good money management at all but I did not know what money management was at the time. It worked like this, I would start with a 25$ investment after all the criteria was met in the broker.,I would then move up to 50$ if it lost then 150$ and the third trade was supposed to always be guaranteed if it ever got to that point. How naive was I to think this was true?
Anyways long story short I ended up emptying the account with my foolishness and my father did not even say I told you so. He encouraged me to study more and now I am actually more into trading forex than anything else. But that was the best lesson of money management I could have ever learned!