The Forex Washouts — Forex Horror Stories The Forex Washouts — Forex Horror Stories Dale Woods July 2, Forex Trading ArticlesForex Trading Psychology 6 Comments During our years of involvement with Forex trading we have come across many other fellow traders that we have become acquainted with or just simply observed from a distance among various trading communities. Some of these traders evolved into profitable full time traders, others unfortunately became another bad statistic. These are true stories, so to respect the privacy of these people we will replace each trader with the appropriate Mr Men personalities. Mr Greedy Mr Greedy was a successful businessman, he started off like most people and got a good education so he could go off into the working world, get a good job and earn a comfortable income. Mr Greedy wanted more, so he used the money he earned through his career and started up his very own business. Mr Greedy worked hard to grow and expand his business to a point where he became a multi-millionaire. But Mr Greedy wanted more than his fair share, so he started looking for other ways to make even more money. Mr Greedy discovered Forex trading and discovered the sky was limit when it came to potential income. Because Mr Greedy was already a successful businessman, he was very overconfident in his ability to take on the markets and generate wealth beyond his wildest dreams. So Mr Greedy invested more money and traded more aggressively and started to notice his money disappearing even faster. Mr Greedy was not used to this kind of failure and in his frustration poured even more of his money into the markets and pursued even more aggressive trading tactics. With everything now on the line Mr Greedy was an emotional time bomb, his third attempt at making money from the Forex market bankrupted him. Mr Greedy is now a shelf packer at the local supermarket struggling to pay off his over bearing debts. Mr Greedy thought he could apply what he had learned in the real world into the Forex market place, this is far from true. To make things worse, when things were not working out, Mr Greedy started to revenge trade in an attempt to recoup his loses plus some change which only accelerated his journey to bankruptcy. Mr Perfect Mr Perfect was a trader that we knew from a public chat room. Most of the time his Forex preachings were erratic and seemed to change from day to day, however his Mr Perfect personality managed to get him quite the following in the chat room and the associated forum. In this thread he was going to take newbie traders by the hand and show them each trade he made and explain his reasons for doing so. Mr Perfect started delivering on his promise and posted trades that he took, but no one could seem to make sense of his explanations as they were rich with Forex babble and saturated with Jargon. Not to mention his reasons for taking trades seemed to be inconsistent and his money management made no sense. Despite the confusion and inconsistency, Mr Perfect was slowly making some returns and the attention on the thread continued to expand. The popularity and attention Mr Perfect was getting drove him to take the next step. Mr Perfect opened a managed trading account, where traders could invest money in his trading ability. A trade copying tool was used so any trades Mr Perfect took would be duplicated on his fans real trading account. He was promoting the best forex signals so traders jumped at the offer. The chart to the left shows Mr Perfects trading performance when he first started. His followers were impressed and started to sign up around mid-February. Mr Perfect continued to flood the chat room and forums with his confusing market preachings. Not only was he not making any money for his followers, he was losing them money with spread costs. There were no serious losses yet so most of his followers continued use his service. Mr Perfect was still confident as ever and continued to preach stories stuff in the chat room and forums while we watched him closely. Finally Mr Perfect crumbled under the pressure. He increased the amount of trades opened at one time, and like a cancer, he slowly killed his followers accounts… As the majority of people jumped on board his managed trade service around mid-February he never managed to make them any money. Mr Perfect went from Hero to Zero very quickly, his thread was soon filled with negative comments and he was no longer welcome in the chat room. Mr Perfect thought he knew everything about the markets and that all of his technical analyses were flawless. Mr Perfect was an attention seeker not a professional trader, he had bad money management and there was no consistency in his trading strategy. We were just counting down the days when it was all going stories fall apart on him. We were actually surprised how long he lasted. Mr Perfect was only aiming for pips profits, but risked pips to do so. It was just unfortunate that he took a lot of other unsuspecting traders with him. We think Mr Perfect would probably make a good car salesman and should keep away from Forex trading. Mr Gullible This story actually involves a group of traders acting together, but they all fit the Mr Gullible profile. So for simplicity sake we will just refer to the group as Mr Gullible. Mr Gullible was quite new to Forex trading, and used to hang out in a Forex public chat room that a popular site had just opened. We often tried to engage in intellectually stimulating conversation regarding Forex topics with Mr Gullible but could never maintain that level of conversation. Mr Gullible would often change the topic towards some scalping or day trading system that he just discovered and was getting heavily involved in. Mr Gullible eventually kicked off his trading career by attempting to trade news releases on the economic calendar. So Mr Gullible purchased the Trading Robot and integrated it into his trading platform. Remember Mr Gullible in this story is actually representing a small group of traders, 3 to be precise. All 3 traders pooled their life savings together and gave the Forex trading robot full control of their hard earned money. In about 3 days most of their pooled life savings were destroyed, the robot had made extremely bad trading decisions and actually never once turned a profit. Only one of the Mr Gullibles was able to walk away with some of his capital, but it was church change compared to what he initially invested. There are so many Forex scams out there, for every 9 Forex scams or crappy products; you will probably find 1 good trading system. This kind of saturation makes it hard to find a good Forex Trading Course to get you set on the right direction with your trading. Usually they are designed around the current market conditions. It would be hidden away in a safe while the creator reaps the rewards. Mr Lazy Mr Lazy was a fellow trader that we met in the public trading community. Mr Lazy was looking for some guidance as he was overwhelmed with the amount of Forex information and strategies available. We took Mr Lazy under our wing as he was interested in learning how to become a good price action trader. Well we regretted that decision quickly, we expected Mr Lazy to play the role of a keen student but instead he turned out to be an annoying parasite. My Lazy had no intention of learning price action trading for himself, he just wanted to bludge off our experience and be a fly on the wall when we were talking about what trades we were planning to take. We soon caught on to what was happening when we noticed Mr Lazy was not receptive to the knowledge we were providing him and tried to gently cut him loose. The unfortunate thing for us is he had our private email and Skype details. Every couple of hours Mr Lazy was hounding us for trading signals, even at the most inappropriate times. We had our fingers on the short trigger for EURUSD when some vital Greek elections were taking place. The Greek elections were broadcasted in Greek. Scotch is from Canada and had to be quick on the Google translator to try keep up with what was going on in the live election feed. During the entire process Mr Lazy was bombarding Scotch with messages every 5 minutes asking him if he should go short yet. Out of frustration we eventually gave him the cold shoulder until he got the message. Forex was our ticket out and we finally got rid of him. Firstly these traders could be the worst traders in the world and you forex blindly following them, holding their hands as they walk you right off the cliff. Forex trading is a personal journey that you should take as an individual. If you are looking for a simple but powerful price action trading course, then you stop by our Price Action Protocol page for more information. Mr Rush Mr Rush was another keen aspiring Price Action trader, unlike Mr Lazy, Mr Rush was hungry for knowledge and was taking in all the advice we gave him. Mr Rush wanted to take all the right steps to become a professional trader, but he wanted to have completed those steps yesterday. Mr Rush was trying to run before he even knew how to walk. Mr Rush started taking every single pin bar formation on the 1 hour chart, across a variety of markets. At times Mr Rush would had about five intra day trades open while continuing to look for more potential trades to open. He even started off by making a trading blog where he would record the steps of his trading journey, from a nobody into a millionaire. His over trading and lack of experience washed him out of the markets, his blog went dead and we never seen him again. Understand it, master it, test your skills on demo and keep your cool. Mr Messy Mr Messy was an interesting trader that had a very strong social presence in an old IRC Forex chat room. We used to mainly hang out in there with the intention of observing the chat room activity for a laugh, because it was mostly nonsense that was thrown around. We have Mr Messy to thank for most of our laughs. Mr Messy would often post up his opinions, trades and charts regularly. Here is another typical chart from Mr Messy. Mr Messy was one of those traders who combined about 50 different trading strategies into one chart and tried to execute them all at the same time. Not only that, but he tried to factor in market sentiment and economic news releases into the mix as well. Mr Messy would deploy all sorts of exotic Forex indicators that he found from all the dark corners of the internet, he left no stone unturned. Mr Messy also used martingale money management, which basically means every time the market moved against him, he would open up a new trade against the momentum, trying to anticipate a bottom or top in the market. One day he presented a screen stories of his open trades, he had been buying all the way down a bearish trend and managed to accumulate a total of 50 open trades against the market forex. Mr Messy… is a mess and made trading way too complicated for himself. Trading is not meant to be complicated. We have found great success in simple Price Action strategies and by keeping our charts clear of confusing indicators. Many would have made the exact same silly emotional choices that destroyed their trading future. It really is common sense, these traders surely would have known subconsciously they were not getting anywhere with their current approach and were digging themselves into failure. This is why we are so passionate about Price Action trading. Price action trading really brings out the clarity of the market. You will be able to read charts like you never have before if you make the switch to price action. If you want to learn more, we offer an advanced price action course for anyone who is serious and passionate about learning price action trading. If you would like to learn more about our price action trading course and War Room members only area, stop by our War Room information Page for more details. Cheers to your trading success. Did you enjoy this article? 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WE will miss you greatly Bella - i am sure you are looking down at your friend and giving a little wag.