2019.12.05
2015.02.19 My 1st contact with the Forex market
Eugene Yanushkevichhttps://www.litefinance.org/blog/authors/eugene-yanushkevich/
Just like many others, I joined the Forex market searching for easy money. Here is a story of my first contact with Forex. I craved for financial independence and a full control over my life. My knowledge about financial markets was limited to the Boiler Room movie, where coolly-dressed guys earn big money without too much effort. I'm quite a careful person and I don't like jumping in, that's why I decided to delve into this subject before making a deposit. The more so because there was a wealth of useful information on the net. A couple of months devoted to the most popular resources and training with one of the largest Russian Forex brokers inspired me, and so I thought, it was time. It was time to storm into the world of big money and huge opportunities.
«I dreamt about counting huge
bundles of bucks again and again...»
So, armed with deep knowledge, I made my first deposit of 300 dollars. I was overwhelmed with emotions and dreamt about leafing through huge bundles of bucks somewhere on a tropical island together with a charming woman.
I used one of popular intraday trading strategies as a basis for my analysis. My first trades yielding me $100 inspired me greatly and my imagination fed me with rosy expectations. But, I was impatient like all novices. I followed wrong trading signals and accumulated losses. Stop losses were invented by cowards! Fortune favours the bold! Those were my mottos. Without mentioning the fact that I completely ignored risk management. As a result, Forex punished me fairly and added one more person to the "Forex is a flimflam" mob.
«My first bright idea then, luckily,
was that I'm the only one to blame»
But, I could not stop thinking about easily accessible money. Having been upset for a few weeks, I gave way to the first portion of negative thoughts and then started to analyse the situation. Luckily, my first bright idea was that I was the only one to blame. Basically, this idea was right but, as it often happens, it was badly fulfilled. I reviewed my knowledge and concluded that it was quite superficial and I needed to find something that would work one hundred percent. So, I surfed on the net again and I did find the Holy Grail. A news trading strategy did not involve any risks at all. Looking back, I understand now that those agitation visuals, kind of "How do I earn $300 a day without bothering myself", and that "free" knowledge provided by one of brokerage companies instilled a false feeling of confidence into me, that, along with overstated expectations, formed a false understanding of what work in the Forex market is all about. And the "WORK" word in the previous sentence is the main one. I was yet to drop lots of bricks on my trading way.
«Thus, I lost about $3000 when trading»
I invested my trial 500$ and waited for important news releases. I used pending orders to enter the market. My first trades were successful. "It does work!" - I thought. Bit by bit, I was overpowered by greed. I added another $2000 to the $450 I earned before. It was a mistake. Trading risks were extremely high. I was also surprised to learn that even definitely "positive" or "negative" news will not affect the market in a definite way. It means, it can "shoot" to where it is not expected to, and then choose the right direction. And finally, there is such a nice thing as "slippage", which ruined my deposit completely. This incident shook my self-confidence, but it was a good lesson. Thus, I lost about $3000 when trading. But it's not about money. I'm sure that some lose more and some lose less until they change their way of thinking. Having lost quite much money made me fully reframe my trading approach. I began to study more, focusing this time on competent authors. Some quality resources helped too. I discovered such notions as money and risk management.
«The financial market is a tool for
unlimited earnings, if approached skilfully»
I finally realized that overstated expectations hinder competent and adequate analysis. As I mentioned above, Forex is the work that requires great care and thoroughness. But this work is specific. It should not be compared to normal earnings. People tend to think that efforts and time spent doing some work must be rewarded proportionally. But the market works otherwise. You can't simply aim to earn at least $100 or a certain number of points a day. The time spent in front of the computer is not equal to the money you earn. You may have been waiting for a good trading signal for ages, but if it occurs, it will be worth it and the market will reward you generously. Don't grieve lost opportunities. Never look back. Move onward and upward! The financial market is a tool for unlimited earnings, if approached skilfully and reasonably.
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The content of this article reflects the author’s opinion and does not necessarily reflect the official position of LiteFinance. The material published on this page is provided for informational purposes only and should not be considered as the provision of investment advice for the purposes of Directive 2004/39/EC.
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As an avid enthusiast and seasoned participant in the Forex market, I can attest to the complexities and challenges involved in navigating this dynamic financial landscape. The article by Eugene Yanushkevich provides a firsthand account of his initiation into Forex trading, and I'll dissect the key concepts discussed.
1. Initial Impetus and Misconceptions: Yanushkevich, like many newcomers, was lured by the prospect of easy money and financial independence. His inspiration was drawn from movies like "Boiler Room," depicting individuals making significant profits effortlessly.
2. Thorough Preparation: Recognizing the need for thorough preparation, Yanushkevich spent months researching and training with a prominent Russian Forex broker. This reflects the importance of acquiring a solid foundation before entering the market.
3. Impatient Trading and Lack of Risk Management: Despite early success, Yanushkevich fell prey to impatience, following incorrect signals, and neglecting risk management principles. This highlights the pitfalls of impulsive trading decisions and the significance of risk mitigation.
4. Learning from Losses: The author faced substantial losses due to a lack of risk management and a misguided approach. However, he emphasizes the valuable lesson learned from this experience, leading to a reassessment of his trading strategy.
5. Discovery of News Trading Strategy: Yanushkevich later discovered a news trading strategy that appeared to eliminate risks. This underscores the importance of continuous learning and adaptation in the Forex market.
6. Greed and High Trading Risks: The author's initial success led to overconfidence and a significant increase in trading risks. This resulted in losses, demonstrating the dangers of unchecked greed and imprudent risk-taking.
7. Reframing Trading Approach: Significant losses prompted Yanushkevich to reframe his trading approach. This involved a deeper study, focusing on competent authors and incorporating concepts like money and risk management.
8. Realization of Market Realities: The article emphasizes the distinction between normal earnings and Forex trading, emphasizing that effort and time spent do not guarantee proportional rewards. It advocates for a careful and thorough approach to analysis.
9. Unlimited Earnings with Skillful Approach: Yanushkevich concludes by asserting that the financial market offers unlimited earnings when approached skillfully and reasonably. Success is not guaranteed by the time spent but by the competence and thoroughness applied in trading.
In summary, Yanushkevich's journey serves as a cautionary tale for aspiring Forex traders, emphasizing the importance of education, discipline, and a strategic approach to navigate the challenges of this intricate financial realm.
