Funny story - I got into FX trading at Uni in 2nd year because I managed to get an internship with Barclays Capital on their FX trading floor so I was trying to figure out what FX trading was all about. Thankfully being a student I didn’t have any real money to put behind trading so I made a little lost a little, didn’t really care.
Anyway a good old school friend of mine kept on pestering me about trading so I introduced him to the BarxFX platform (they had a retail platform ages ago) and told him everything I new which admittedly wasn’t very much. (short conversation) I think around scalping if I remember.
Anyway fast forward 4 months and I get a call from this guy out of blue asking me to lend him £5,000. I said Michael, what for - trading he needed more capital. Ok, so let me see how you have been doing let me see your demo and live accounts.
I don’t know how he managed to lose over 100 million in just 4 months on his demo account and £48,000 on his live; £48,750 deposited no withdrawals and only £750 left in the account.
He apparently borrowed from family and friends would get in on positions without having a Stop Loss in place and would just leave it. Limited Profit potential with a TP based on a scalp, but unlimited loss potential with no SL: lunatic!
I think he went into a bit of depression after that, and he is still paying back his creditors. Good for him I say, I have the view that they should have known the risks.