Well, I’ve been trading demo accounts sporadically for 2 years, and then 2 months ago I finally felt like I had cracked the code of ‘how to trade a currency’ and decided to invest in a micro account, and what a rollercoaster it has been... interestingly the word ‘pip’ now has more value to me than the word ‘money’ and I would really like to share my Forex adventure with you all…
So, on the final day of August 2011, I invested my first $200, and boy was I in for a shock. In theory live/demo what’s the difference? Well I can tell you right now EVERYTHING feels different, and after my first month I am now treasuring previous advice from Jarratt Davis and books such as “Trading in the Zone”.
So, month 1, September 2011 - well I’d like to say how well it went, but the reality – it didn’t.
I lost over 75% of my funds and the reason for such an absurd drawdown - I played around with the ‘system’ I had developed too much and was in a rush, hunting for all the action and foolishly risked more than I should have, and in one foul swoop there went 75% of my Equity. But this isn’t a bad thing, I learned my lessons, and actually realised the patient and consistent approach would pay off and it is.. so far I’m 32% up this month, and granted this may be on a small account but it’s profit, and I know what trades I do and do not want to take and my patience of monitoring the H1 and H4 slots (as opposed to the 5M) is paying off. Essentially I paid $125 for a swift lesson in Forex phycology and will never forget it. A lesson which may well set me up for life!
The market this month (in my eyes) has felt very turbulent and challenging but waiting for the right trade that is within my system (which uses a powerful indicator, moving averages, market flow and trend) seems to be working.
So far this month (October 2011) has given me 12 trades, 7 of which were winners leaving me 63 pips up (so far).
I promise future blogs will be shorter and more ‘to the point’ and as always will be an honest and real look at my advancement, so please subscribe and join me on my journey – I’ll see you next week.