Had I stuck to my original plan and not gone too heavy and then had to keep closing and opening trades, I’d have been a millionaire long ago. It is the psychological issue that makes forex tricky and there is always so much fluctuation!
I have managed to get my forex account balance well above USD914k. Having said that, I currently have open trades that total -360k. That still leaves me with about 554k in equity. How much and for how long have I invested into this account? That would probably be a reasonable question. I am around the break even point if I were to close all of my open trades as soon as the market next opens. Not very good after 7 years… But I am still confident that the JPY will shoot up, even if only short term, as a result of some global event. When that happens I will capitalize on it. In the interim, I continue to jack my balance somewhat aggressively. My margin level is over 2000% so I am in a safe place. I will ride the wave and when my open trades get to a point of near equality, I will be in great shape.
As far as taxes go, all I have to do is dump 76k and I won’t pay any. If I choose to dump more, I can carry that over and use it to my benefit in the future. The tax issue is complicated… How the government sees it is different from how the forex trader does. It is easy to show a profit but really be in debt! I learned a lot over the past 7 years that will be invaluable moving forward. If the USD/JPY drops 1000 pips or more, I will be in amazing shape. If it goes the other way, I will still be able to withstand most of the damage and ride the slide back down…
One more thing… In the months when I am much more engaged in trading, I have been very successful. For example, I have lost my f/t job twice in 2017. Both times after that, while unemployed, I spent considerably more time trading forex. Over 2 separate spans of time totaling about 22 weeks, I jacked my account balance by over 50k. I am convinced that when I have the time and I am willing to take smaller profits (and smaller losses when needed), I can be successful. When I have been successful, I generally leverage either 1.0 or 2.0 on trades and am not afraid to take all of my profits when the opportunity arises. I often will open 3-6 1.0 or 2.0 trades on the same pair and take profits of $300-$600. This can add up nicely over time. If I choose to wait for greater profits, even once a specific trade candle has calmed down and there has been little movement for some time, almost every time, that profit will disappear and retract to where it was previously. It often even becomes a loss. So, depending on a host of variables, it is usually best to take your profits when you are presented with them.