Forex trading is a risky business, after few years involved in Forex trading i have recognized 3 stage of Forex trading that every traders experienced. I am not saying i am a successful trader, there are still long journey waiting in the next few years of my trading journal that i need to overcome.

1st Stages of Trading – Losing it all
At the early stages of trading i didn’t have much expose to Forex trading except researching using Googles and read lot of articles about how you can be multimillionaire by trading Forex. Inspired by the multimillionaire stories I opened my first real account with minimum of $100 with one well known broker in my country and of course with the highest leverage account. I believe you guys know what happen next.. I blew my account in just few hours.

This is what you do when losing

The next few days is I deposited again inside the same account hoping to get back my previous capital. This time I got lucky because for the first time i saw my real account generating profit. Not much but it is enough to motivate me to add another position until max leverage hoping that i will get more and more profit. That account lasted less that 24 hours. I repeat the same mistake again and again for about one year with multiple brokers. At the same year also I was introduce by my friends many techniques and indicators, most of them are profitable if you backtest with previous data, but when it comes to real trading situation i am unable to get the profit.

2nd Stages – Realizing Whats Wrong
The second stage of my trading history was i started realizing the right and wrong during trading. I have lot free and paid indicator that i get mostly from the internet. From my experience most of the indicator are profitable. The only problem is how to use them to get profit. At this point i realize that money management is the key. Even if you have indicator with 80% of winning rate but if you manage you capital poorly, you will still not gaining any profit. I gave you simple money management calculation although you have more loss than a win but still you get profit at the end of the trade.

1 trade
TP 50 PIPS
SL 25 PIPS
SL HIT = -25

2 trade
TP 50 PIPS
SL 25 PIPS
SL HIT = -25

3 trade
TP 50 PIPS
SL 25 PIPS
SL HIT = -25

4 trade
TP 50 PIPS
SL 25 PIPS
TP HIT = +50

5 trade
TP 50 PIPS
SL 25 PIPS
TP HIT = +50

From 5 trade only 2 trade are profitable with total of 100 Pips, other 3 trades hit SL with total of -75 Pips. At the end of the 5 trades, we are still in profit by 25 pips. Although we have 3 loses. This is where i realize that it is a must to combine the winning strategy with the correct money management. This is my stating point hunting the higher probability of winning trading strategy. Took me more than one year to compile and test few good trading strategy.

Stage 3 – Focusing on the only one.
Testing multiple indicator almost make me want to give up trading. Since most of the test was done using the real account and not demo. I found out the the suitable trading method for me is just using a naked chart and simple support and resistance line. I believe this is the most classical way of trading and lot of institutional traders are using the support and resistance to determine buy and sell. I found out that by using support and resistance line on the higher time frame giving me a very good wining percentage. This blog will acted as my trading journal and sharing idea about my trading position. Although I am now able to minimize my loses and gaining decent profit, i am still fighting with my emotion not to be greedy.