First account - £3000 to nearly £7000 in a 6 weeks

So i opened my first mt5 account using fxtm broker on the 7th of November. I deposited £3000 money and my balance now stands at £6900 on christmas day.

I started at the start of the year and spent about 6-9 months studying baby pips and watching videos and messed around with a few indicators but i ended up using pure price action with support and resistance lines and gut instinct.

I must admit, im from the uk and made about £1500 during the general election in a 2 day period.

I have employed a strategy that when a trade is noticeably going in the wrong direction (ie if i took a long trade when i thought the price had broken the resistance line and went with my gut) but it has reverse and was heading towards my SL - i would execute a high lot short order with a tp of only a few pips but would negate the loss - or even make some profit if you get me?

Ive done this about 5 times and always have an eye on the chart to manually close if the trade reverses to say £-100 to never put too much of my account at risk?

I currently have just over a 50% win rate and tend to use 1.00 lot sizes and in the event of the other strategy, lot sizes about 5.00.

I trade all major pairs and tend to swing/day trade as I study and work.

Any recommendations?

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sound very risky and profitable
what if price go in a range between your 2 opposite trades ?

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Hi mate,

I wont be able to convince you otherwise as what you are doing has worked. However I would say you’re taking too much risk and the strategy of taking a higher lot size trade in the opposite direction is extremely risky and I dont think it will work in the long run. As long as you’re aware of the high risk you’re taking it’s fine. Just don’t hold onto a losing trade so long that it blows your account. In your case I would go back to 3k and put the profit back into your bank account. Best of luck! :+1:

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Well done on the return but have to echo the other posts , martigale way of double is very risky , if the market reverses you in a real position of pain. I am also in UK Durham and at the screens every day and happy to help anytime

Kind Regards

Langers

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Congrats on you success! But as I’ve said here before, don’t confuse luck with skill, because the market will soon chew you up and spit you out.

I assume you’re talking about hedging. I use this strategy occasionally and it can be effective. But, as already mentioned it can be risky, especially when taking a large position. I try not to get too aggressive, just try to lessen the blow of a losing trade until it either turns around or hits your SL.

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The strategy you employ here is something similar to what very good scalp traders do.

I say very similar but not exactly the same.

What they do is if they say take a long trade and then see that the trade is going in the wrong direction what they do, if they believe their premise is right, they will buy more lower so that when the trade turns and resumes in an upward direction will allow them to get out break even on their first trade and finish with a small profit on the second trade.

Certainly not the type of trading for the faint hearted.

Cheers

Blackduck.

My suggestion is to take a chill pill and cut the euphoria.

You have made a bit of a windfall - now time to slow down - even stay away from the market for a bit.

The likelihood is your along way from doing this consistently.

I once made 700% on total account size in a year - started taking on ‘clients’ and promptly gave it all back.

Not saying thats whats gonna happen to you but when the endorphins arent pumping around so much youll probably realise how at risk you have been.

i know you think your probably the next great Paul Tudor Jones right now and not wanting to listen which is the time to be most wary.

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This is a high risk strategy but can produce dramatic gains, which makes you think it is low risk. The absence of disaster so far does not mean disaster is impossible.

You should research stop-and-reverse tactics for insight into this technique. And realise there might be good reasons why so few people are doing it.

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Congratulation for your success its nice to hear that, but my advice to is always take a proper risk management sometimes monster candles exist so always stay focus and strict to your trading plan “We are traders not gamblers”

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I agree with the others who have said that you are probably taking too much risk. If you wish to continue along your current path, I suggest that you withdraw your original 3,000 and trade the winnings only. That way, if you crash you haven’t lost your original capital.

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What leverage do you use?

Well done on more than doubling your account.
However, I think its super risky, especially if you are using big lots as you mentioned. Plus you are increasing your transaction cost (additional spread on short position) by trading more. I never have two opposing positions open for this reason at the same time.

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Sounds good mate, but make sure you are sticking to good risk management. All it takes is for a bad few trades to happen, and your account goes boom.

I wonder if this person is still around or still trading… or just a one post wonder.

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yes im still aroundlol, account now standing at just under £8000. I have taken a step back because of studies and im going to start to risk less of my account per trade - probably around 5%. the technique worked well for me but i think it may be a case of luck, however im still looking into the stop and reverse technique mentioned earlier

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Sounds like it has worked very well for you, congratualtions

Sounds very good, but the question is, can you maintain making profits in the same manner? If you used high volumes and high leverage that’s already super risky. You were definitely lucky :wink:

Cash out. Count your blessings, save that money and go back to demo trading and develop a rigid set of risk management rules and a trading strategy that you can back test, live test upside down test in a demo with consistent results for 6months. Then and only then open a real money account with some of that you tucked away and saved. Risk management is the secret to success. Ask any fx trader that hasn’t emptied their account in 20 years…they will tell you risk management is the secret. Congrats! Best of luck!

If you believe that it is skill, more so than luck, then you’re going to have no problem making loads of cash!

Given that, I would suggest withdrawing your initial investment.

Based on your performance you’ll be back to your current balance of 8K, in short order, in a permanent break even position.

Now you’ll be trading with OPM or “found money”!

KC

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It’s really a useful info, thanks.