Successful trading from zero to the first million. SHARE THIS POST
- How Fred Made $1 Million Dollars From 40 Trades In 3 Months-You Wouldn’t Believe What Happens Next!
- Chatting with a 23-year-old Stock Trading Millionaire
- Zero to $1 Million in 18 Months Trading Forex
- 31-year-old self-made millionaire reveals the simple philosophy behind his success
- thanks for visiting cnnmoney.
- Penny stock trader: From $1, to $1 million in three years
What do you mean, I said. I knew I was going to like this guy but he had a wicked sense of humor. Mark McRae, a forex trader is the one that is telling this story. At the time, I remember coming out from the thinking that I had cracked it.
How Fred Made $1 Million Dollars From 40 Trades In 3 Months-You Wouldn’t Believe What Happens Next!
I was already planning on the car I was going to buy and what sort of massive house I was going to live in. The course finished on a Friday and by Tuesday I was set up with a broker and ready to make my fortune. Why did he blow up his forex trading account? Lack of forex money management or trading risk management as some may call it. He knew if he went along this path of trading, he would not make money trading forex so for the next 6 months he read everything he could about forex and testing different ideas.
He was obsessed with it. Mark realized a few month later that this forex trading course which he paid a lot of money for was totally useless.
But he still kept in touch with Peter who was a really likeable guy. Just as a side note here. If you ever go to Scotland, make a point of heading up to Perthshire. Everyone goes to Edinburgh or Glasgow but trust me, the farther North you go in Scotland the more beautiful it gets and the people are much friendlier too. So, picture the scene.
Chatting with a 23-year-old Stock Trading Millionaire
I had eventually got my act together. I was making money trading, not a lot but enough to cover my living expenses and it was in the heady days before I had children so there always seemed to be time for things. I would get up at around 5 am, make myself a big cup of black coffee, put on some Beethoven or Enya and settle in for the morning. My favorite technique was to try to catch a move on the London opening and be finished by midday.
The 5 minute charts just seemed easier to trade in those days. This left me time for my second passion of going to the movies. Both my wife and I used to be devoted moviegoers. I mean, we would watch every single new release and even the arty foreign ones too.
Peter gives him a call a week later and tells Mark that a guy called Fred has just taken his forex trading course and is struggling a bit with it and asks Mark if he could spend a day with him to try to help him understand. He wanted to make a deal. He successful trading from zero to the first million FedEx it down to me the same day if I would spend some time with Fred. He got me with the one thing he knew I would bite at.
Arrangement were made that I would collect Fred from Edinburgh airport on Monday morning. About two days before I was due to collect Fred, he calls me. So how much money are you making? I wondered if I had made a good decision agreeing to spend the day strategy moment binary options him. Monday morning comes and into the arrival lounge steps Fred. Big tall guy, over six foot tall.
His hair was just starting to turn grey and he was dressed in baggy jeans and a T-shirt. I placed him about years old. We made some general chit chat on the way back to Blairgowrie and eventually we got in front of the screen where I started to explain how I trade.
Around this time I was really into Fibonacci. Fred just sat there looking at his with is face resting on his hand while his elbow on the table which made has face all scrunched up like a cabbage patch doll. Just show me the good stuff, you know, the thing that makes the money. Plus, at the rate you make money, I might be 60 before I make any decent money.
We spent the rest of the day talking about trading and life in general. I laughed the whole day. This guy only knew how to do things one way and that was with both barrels blazing.
Fred eventually went home and things returned to normal. A few days later I get one of many calls that were to come from Fred. You could and still do get incredible leverage with Forex. In those days there were no such things as mini contracts. I had just started trading with two contracts and here was Fred on his first trade, jumping right in there with ten contracts. How big is your stop I asked him. You can sit up there in the Highlands and watch the grass grow while I make the real money down here.
Put that in your pipe and smoke it. I was going to short the Pound so I went short 30 contracts and went out for a coffee. Anyway, when I get back you will never guess what happened.
Zero to $1 Million in 18 Months Trading Forex
I screwed up. Over the course of the next few weeks Fred made about six trades and was increasing his leverage as he went. He was now regularly trading 30 contracts plus. Quick Explanation The pip dollar value is not the same for all the currency pairs because it varies depending on which currency pair you trade. It was madness but no amount of reason was going to stop him.
He had also had a remarkable run. If a couple of candlestick closes above the consolidation he went long.
- How Fred Make $1 million dollars with 40 Trades (TRUE STORY)
- Sound like fun?
If he had a couple of candlestick closes below the consolidation he went short. For take profits, Fred just closed the position when he felt he had made enough or judged the market to be turning on him.
He and the family went to Disney Land.
31-year-old self-made millionaire reveals the simple philosophy behind his success
You need to take a break and spend some time with the family. Silence on the other end of the phone. A few hours later he calls again. He wanted to trade without a dealing station and no access to charts. Send me a 5 minute of the Yen and I will keep it to ten contracts. I knew that regardless of what I said he would find a way to trade. Obviously going over his 10 contract limit he promised me. Fred was using his forex leverage to the maximum and he was succeeding…or so it seemed.
He kept pushing it, trading huge contracts and still using his forex leverage to the maximum.
Asia opens but generally there are no big moves. The phone rings about 1 am and wakes me from my sleep. I lay in bed for about ten minutes thinking about what Fred had said and then curiosity got the better of me, I had to go see for myself.
I knew as soon as I saw the chart what was worrying Fred. For some reason the Swiss had gone up over pips on a Sunday night. Fred must be short the Swiss I reasoned. I decided to call him. What do you think I should do? Whatever you decide put a stop in to be on the safe side. It had moved another 80 odd pips up. I called Fred. I thought that as it had already moved so much it must be ready for a pullback so I shorted it successful trading from zero to the first million.
There is something else Mark but I am too embarrassed to tell you. Not only had he shorted the pair again he had added contracts. Nothing really worked out for Fred after that disastrous trade.
thanks for visiting cnnmoney.
Mark says that Fred was the first trader he knew who actually had a margin call. If you are close to that level, the broker can call you to put more money into your trading account to cover your position or if not they can close your trade when it reaches that level. It took some time but Fred to recover but he did eventual make quite a bit of money in the property game. Of all the hundreds of traders I have met over the years I only know a handful that still trade and make money year after year.
All those traders without exception have strict money management principles and a simple method or system. You need to learn this profession.
Penny stock trader: From $1, to $1 million in three years
You need to have money management principles in place that allows you to stay in the game even when you go through a bad patch and trust me they will come. When I got to a million I immediately thought, why not ten million me old matey.
There was a time during all this when I would have believed he could have done it. And the main idea of that article is to show how easy it is to make a million dollars if you have a lot of initial forex trading capital to start with. So in summary: Fred failed to cut his trading losses fast and that led to blowing up his forex trading account.
Sometimes your string of forex trading success runs makes you think you are invincible. Its only a matter of time before the market will humble you.