How I Tripled a $500,000 Forex Account in 6 Days

Yes; I really did it

I signed up for a $500,000 demo account with 1:500 leverage on May 26. I felt I like to have some challenging. I have never worked with such a risky leverage (1:500). So I just wanted to have some challenging and test my abilities. We all need it every now and then. Even the most professional and successful traders need to have a demo account at the side and practice the new ideas and systems with it. It will help you a lot to know yourself and your emotions better.

About the 1:500 leverage I have to say that it doesn’t make you more money. I just let you trade bigger amounts with a smaller account. There is no doubt that it is really risky and it can drain your account balance in few seconds if you trade carelessly. It is ok to have a 1:500 account but you have to be so careful and you should not use all the potential of a 1:500 leverage. For example when you have a $10,000 account with 1:100 leverage, trading one lot EUR/USD needs about $1400 margin (this amount can vary according to the value of EUR/USD) whereas with 1:500 leverage you can trade five lots with the same margin. When you trade one lot, each point makes/loses about $10 and when you trade five lots each point makes/loses $50. That’s why you have to be careful. So with any leverage you work, you’d better not to trade more than 10% of your account.

So I started trading with this account. First I just focused on EUR/USD but when the market became slow, I shifted to GBP/JPY and then decided to be stuck to GBP/JPY because it was volatile all the time. Before I started trading I checked all the weekly, daily, 4 hours, one hour charts but the surprising thing is that I took my positions according to the one minute chart. This is the challenging part of the game. You know that I am an intraday trader mainly but I was not used to use one minute chart to trade. The only indicators I added to my candlestick chart were Bollinger Bands (20) and RSI (9).

Technical analysis and finding the support, resistance and trend lines were other important things I always do in my trades. In most cases I closed my position when I saw that I have good amount of profit in my hand and some reversal signals were appearing but on the other hand when I saw that there is a good trend in bigger time frames I let some of the positions work and make more profit. So in my statement you can see that there are both big and small trades.

I started trading ten lots (€1,000,000) but then I increased it to 20 and 100 lots. When my account became much bigger, I traded 200 lots and sometimes I had 3 to 6 open positions. It means six €20,000,000 open positions. Yes; I told you that I wanted to have some challenging.

It may look crazy to you but I knew what I was doing. I followed the signals and added to my trade only when the previously open position was doing good. Traders say you should not add to a wrong position but you can add to a correct position if your account size allows you to do that.

I could triple the account after about 6 days and then slowed down and spent less time on it. The current account balance (today is June 16th) is $3,348,853.65 after making 188 trades.

I also tested some Expert Advisors on this account from June 3th to 9th but I have to say that they are really terrible and you should not try them on your real account. They only lost money on my demo account. Some of the auto-trading robots are really hot these days and I could make some money by selling them in weboma.com but I will not do that because I know they don’t work and are wasting of time and money. I will explain in a different article that why you should not use these robots or Expert Advisors.

So how could I achieve this? Am I genius or I have an extraordinary system (strategy)?

I am not genius and I have no extra ordinary system. I am just disciplined and patient. I have learned from my mistakes and I still learn. I have gained enough experience and am still eager to experience more. I know the market movements and behavior. I know technical analysis and have learned to read the mind of buyers (bulls) and sellers (bears).

Ah ah! Wait a second!

Do I look over-confident?

hmmmm! This is what you always have to be careful about it. Over-confidence can be more dangerous than having no confidence.

When I got my driver’s license, I drove carefully for a while and then I became realized that I am a good driver. I started driving with less caution and it was the time that I got an accident. Fortunately it was not a bad accident but it was a big lesson: Even if you have been driving for 100 years, you need to have the same caution as the first day because the streets, cars, trucks and … don’t know you. They don’t know if you are an experienced driver or a new driver. They don’t care about your experience. You have to use your experience to avoid getting involved in an accident.

Forex market is like that too. You will lose money after having some successful trades. You will think you have learned enough and you can trade easily. But the forex market doesn’t know you and also other traders. It moves on its own way. It doesn’t follow you. You have to follow it.

Same as my accident, I lost a lot of money because of over-confidence but it taught me a big lesson. So I am not over-confident because forex market breaks the bones of pride and over-confident traders.

So keep in your mind. Even if you have been trading forex for 100 years and you have made millions of dollars of profit, you have to analyze the market with the same preciseness and caution as the first day. Do not enter to any trade as long as you have not seen the signals you have to see and even after a good trade setup, don’t forget to place a stop loss in a proper position.

Another question is that can I do the same thing with a real account?

If I act and behave in the same way that I did with this demo account, yes. There is no difference between demo and real account. So if you trade with a real account exactly as what you trade with a demo account, you will get the same result. It is all the matter of controlling the emotions. If you make profit with the demo account but you lose when you trade with a real account, it means you have learned the techniques but you have problems in controlling your emotions.

You have enough patience with the demo account but no patience with the real account. You let your trades make profit with the demo account but you close the profitable trades too early in the real account. Or you set proper stop loss in the demo account and let it works when the price goes against you but you don’t set the proper stop loss with the real account or when the price is close to trigger the stop loss, you move it. You trade with the demo account with peace of mind and without any stress but you are overwhelmed while trading with the real account. The stress doesn’t let you analyze and find the signals properly and so you make mistakes.

So what should you do?

You have to learn to control your emotions and this can be done only by practicing. In my “When You Will Be A Professional Forex Trader?” article I have explained the steps that you have to follow to become able to trade emotion free.

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