FXWW News/Trade Ideas

How to turn $20k into $1 million in 8 easy weeks

You think I’d tell you if I knew! But the up-side to tracking traders is that you eventually come across some who are very successful, and today I had the pleasure of seeing how 1 reasonably ordinary guy could turn a small account into a large account in a very short space of time. I can also say that there is no way in the world that this guy will ever manage money for others as he breaks every rule in the funds management handbook. The good news for him is that he probably will never want to; most of the really good traders make so much trading for themselves that they have no interest in managing other people’s money. Anyway, the story evolved something like this;

  • He chopped around for a few months using relatively small leverage and making no major losses;
  • He got on a roll with 3 separate trades and increased leverage quite sharply (getting lucky a few times) until his account was up to over $50k. He withdrew his original starting sum.
  • He used absolutely ridiculous levels of leverage trading multiple pairs across relatively short time frames.
  • If trades went against him he added and added again until they went back into profit.
  • He took relatively small profits after facing big losses and moved onto the next trade, his only criteria seeming to be that each trade be somehow profitable and he never seemed willing to ‘give up’ on trades.
  • The amount of leverage was at times quite mad but he was lucky and on a ‘hot’ run and got away with it.

The good news is that it’s doable. The bad news is that less than 1% have what it takes. Not a very fair game.

As FXWW888 just said to me, he feels like he could easily turn $1mio into $20k šŸ™‚ I’m in same boat šŸ™‚

  1. Yeah, but (seriously) is 1,000,000 worth a shorter lifespan due to stress? Nope

    I was a slow slow slow learner when it came to using stops, took a couple years to get that lesson nailed into my noggin, to many sleepless nights to recall, now I finally learned to shut it all down and walk away for a few hours if I catch myself chasing. Now most of my trades are limit orders, with the criteria of ‘at’ support or resistance … And I alep like a baby.

    Congrats to the guy, but that is no different than entering a dare-devil contest for a million bucks.

  2. It is gambling, not trading for a retail trader. The maximum I had done is turning 2K into 11K in 5 days, that too when Kuroda announced the easing for Yen in April.

  3. I can empathsize with the story… Although my ending is the opposite of this trader but I utilised the re-averaging strategy and it cos many sleepless nights, stressed out relationship and ultimately my trading account…

    Still trying to get my feet back to trading BUT I am glad to have the team of fxww for guidance now.

  4. This is why there are so many beginners out there who trade exactly like what you described of that individual: NEGATIVE REINFORCEMENT. You should now post over the next 99 days a story each day of all the guys who did not make it, over-leveraged and blew their accounts. That would reflect reality. But all we hear here or anyplace else is about stories of guys who swung the lasso and shot it out wildly and somehow made it.

    I have no sympathy for such guys when they eventually blow out and most all of those 1%-ers do. I have worked too long at professional sell-side prop teams and hedge funds to know that hardly anyone who trades at crazy leverage levels survives too long.

    In summary, cute story but I have seen it before a million times. Not how I want to live life nor retire, meaning as a lucky lottery player. I want to amass wealth knowing I grind it out against some of the smartest in the industry day in day out and won net-net. That is part of my motivation in trading actually, to win in this highly competitive game. But not by drawing couple lucky streaks.

  5. History has shown that these trading methods have always led to blown accounts. So while there maybe a few outliers, statistically, the odds are against you.

  6. hi Sean, what about long Eur/CHF? do u still have it? more, what about short CHF/JPY? do u see an important positive risk reward? many thanks

  7. Yes mate, still long with stop just below 12320 now. Really got no strong feel for it though, purely technical trade on my part due to decent risk reward on offer.

  8. haha great story. I also know about a guy who went from $20k to $200k in about 10 weeks. The best I ever did was to go 500% in 3 weeks…but the story does not end well…hahaha

  9. Thank you Sean, I love fairy tales))) Shit happens both ways (up and down), as long as you are not betting the house it’s all fair game in my opinion.

    I will try catch a falling knife in aud/nzd around 1.15, but have no strong conviction there, looked on monthly chart and realized that this puppy could easily slide all the way to 1.05 without much remorse…

    have a great weekend,

  10. Hmmm, the truth is that that si the wining way in forex BUT if not perfectly done it is a fast lane to blown account.. I have traded the style and got blown repeatedly however i now do same concept but with advanced modifications and i seems invincible to forex loss now.

  11. Good luck Kirill. But ‘fairy tale’ it is now and to look at all his trades you begin to see what “in the zone” means as a trader. He didn’t worry about which pair, or leverage rules, he was simply a talented trader who suddenly started picking the mkt clean and backed himself big time. The guys who blow up gamble big-time and have no trading talent, this guy has plenty. But like I said, he’ll never be a money manager

  12. ‘it is not’ that meant to read. I think NZD/USD looks set to make big gains sometime soon but you will prob have plenty of trading chances in the cross over coming weeks.

  13. Sean,
    I do not doubt the reality of the ‘fairy tale’ and may be I should have used a different words. In general this is the only way to make it… All big guys have done some stupid leverage att some point in their career, but unfortunately such tales are quite rare, thus my referency to fairy world… Anyway respect and congrats to him.

  14. Fascinating story indeed. He probably made it easier by withdrawing his initial investment and if he could trade like he wasn’t risking his own, real money that probably helped with the stress. Or he could be an adrenaline-junkie šŸ™‚

    Lowering my risk this year helped my trading and this is what I’ve done:

    I took up an offer from FXDD in March to open an account with AUD 250 which amount they matched with an AUD 250 bonus. So I had AUD 250 and an account which allows me to trade micro lots.
    As of now, end of July the equity is over AUD 1000 (I haven’t withdrawn anything yet). I am able to build positions much better with the tiny lots and hardly ever have to bail out of a trade with a loss. Of course that means I’m probably right about the market’s direction more often than I am wrong.

    And less risk related stress means I can sleep more and am able to spend a lot more time on my other interests, in fact just trying to start a new business which is not related to forex. I also want to start managing my own super fund before the fund managers completely blow it šŸ™‚

    With trading my goal is to continue with the same method and while I might not achieve 120% profit in every 4 months but if I can hang on to it and made that over a year then I should be quite happy with that too. It’s way more than what most professional “fundsters” can achieve but then they are very restricted in what they can do.

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