TOTO gambles on Forex
Here is a typical example of the speculator who deals on the FOREX and inevitably lose one day or another all his capital. Call him TOTO.
Toto likes to see lots of small green lines in all the history of his transactions. Red one, he doesn’t want to see, so he still waits to close in green. He plays well and wins all the time. Sometimes with more difficulties than others but he always wins.
The FOREX is easy for him. However, all his lines are naturally green, but show a gain ranging from 1 pip (no, no, I’m not joking) to 10 or 15 pips up. To spice it all, Toto doesn’t want a pip to make him earn 3 peanuts … So he uses the maximum leverage that is proposed.
Toto knows the stress, and claims that to trade is stressful. Normal, Toto deals without any stop loss, and from time to time, the trade gets in the wrong side at the beginning. Then he leaves … He said that it will come back one day or another to his entry price (+ 1 pip in the right side of course) (These are the trades that bring him 1 pip of profit…)
But one time, it happens to be a day the price do not . And there, the account of Toto will kindly make his 900% margin used … He received the margin call of his broker … The position of Toto was cut …
(For unnerve Toto, we will say that the course is finally returned to his entry point and even went much further in the right side of his former trade, just after Toto has been cut …)
Toto provides his account several times, before seeking to understand where the error of his trading strategy is coming from… Or he will continue to lose, enjoying it …
End of the story “Toto gambles on Forex”
Moral of the story: do not act like Toto, come see advices of trading to avoid that. End of the stress, end of accounts that get down to zero, start of a structured trading plan.