The Trading Mistake That Cost Him 5 Prop Firm Accounts
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#645: The Trading Mistake That Cost Him 5 Prop Firm Accounts
In this video:
00:26 – Remember hearing about Aesop’s fables?
01:33 – Trading luck on a demo account.
02:40 – Prop firm account failures.
03:42 – When I started trading, I had no idea what I was doing.
04:38 – Trading is harder than you think.
05:13 – Avoid the mistakes and view my Masterclass.
06:04 – Blueberry Markets as a Forex Broker.
06:22 – Questions, Like, share and subscribe.
Have you ever confused trading skill with trading luck? I know I used to do it. I’m sure you’ve done it. And I’ve got a great story to share with you. Let’s get into that more right now.
Hey there, Trader! Andrew here at The Forex Trading Coach with video and podcast number 645.
Remember hearing about Aesop’s fables?
Do you remember as a kid you may have heard about Aesop’s Fables? Well, I’ve got a story to tell you today that’s a true story, and it’s about confusing trading skill and trading luck.
A number of months ago, I received an email from somebody who was saying, “I don’t need to learn how to trade. I know how to trade, and I don’t need your course because I know how to trade.”
And I was thinking, why is this person telling me this? Why are they wasting their time, or my time, telling me this?
So I had a little look online at our database, and I saw this person had been on our masterclass. They’d downloaded my book and calculator, they’d been opening emails all the time, and I thought, that’s strange.
Why is this person so interested in what we do if they’re so good? And it’s fine if they’re really good. Good on you, go for it.
So I wrote back to him and said, “Look, that’s absolutely fine. But keep in touch. If you want to send me some details, I will have a look.” So he sent me his account details.
Trading luck on a demo account.
Of course, it was a demo account. All I could see was trading luck. I couldn’t see any skill there. Now, of course, I couldn’t tell his strategy and how he was taking the trades, but I could see the results. And yes, there were some very good trades on there in terms of monetary value.
But when I looked at the risk and the stop losses and that type of thing, it was a complete fluke.
I didn’t quite tell him that in those exact words, but I said, “Look, it looks like your money management and your risk management are not great. They could be improved. We could certainly help you there. Have a look at some of my free videos.” And I left it at that.
He wrote back and told me, “Well, I certainly don’t need your help.”
So this went around in circles. I was getting a little bit confused. I’m trying to help someone, they didn’t seem to want the help, but they kept writing anyway.
I said, “Well, good luck.”
And he wrote back and said, “I’m going to be a successful trader trading prop firms.”
So I said, “Oh well, again, keep in touch if you really want to, but good luck. Off you go.”
Prop firm account failures.
Now, just this week I received an email from him saying that he has failed 5 $100,000 prop firm trials. They’ve cost him about $550 USD each, so you can see how much he’s spent. And he’s not made a single penny out of it.
It’s no surprise to me because, obviously, to pass a prop firm you’ve got to have low risk and low drawdown. You could see clearly this guy was never going to do that if he continued to trade the same way.
So I kind of felt like going back and saying, “Well, I told you so.”
I also kind of felt like thinking, “Well, if you’ve just spent 5 lots of $550 USD, for way less than that you could have jumped on our course and be trading the way that we trade, with low risk and following what we do.”
I didn’t tell him that, but I kind of felt it, and he’s probably got that feeling himself. So when I think about Aesop’s Fables, it’s like you learn the hard way. A lot of those stories are the same. When I started trading, I had no idea what I was doing.
When I started trading, I had no idea what I was doing.
Look, I’m not saying I’m immune to this. When I started trading, I did exactly the same. I was trading on a demo account, and I was just randomly putting positions on here, there, and all over the place. Most of the time, no stop losses, just random lot sizes of 1.00 lots because I thought that’s what I should do.
I’ve looked at a lot of good trades as well. I distinctly remember showing friends at the time and saying, “I’m going to be a full-time currency trader because look at all these trades I’ve made. I’ve just turned a $100,000 demo account into like half a million dollars in about a month. Look at me.” And I did well.
Now, of course, that never happens in real time, in real life, in live accounts, because you soon figure out through the school of hard knocks, whether it’s through blowing accounts or not being able to afford any more money, or like this guy, 5 failed prop firm challenges in a row, that trading is a lot harder than you think.
Trading is harder than you think.
You do need to treat it properly. You do need low risk. You do need some support and some help. And you do need a proven strategy.
So it’s quite interesting when you think about that. This guy could have saved himself a whole heap of headaches, a whole heap of time, and a whole heap of money, and he’s still no better off today.
That’s the other thing. He spent 5 lots of $550 on prop firm accounts, and he’s got nothing to show for it now.
Sure, he might have learned a few things along the way, but he’s not actually any better off in terms of his logic, his strategy, or any hope of making a return.
Avoid the mistakes and view my Masterclass.
So look, if you’d like to avoid being like him, and like I was at the very early stages, probably 23 or 24 years ago now, do yourself a favour. Jump onto my masterclass. Have a look. It’s completely free of charge, with no obligation. Have a look. It’s 15 minutes long, and please ask questions of us. That’s what we’re here for.
We’ve been doing this for a long time. We’ve got clients right around the world, so we know what works. We know what doesn’t work as well, and we’re doing this ourselves every single day.
I’ve just taken a 6-hour chart trade right now, just a few minutes ago, selling the AUD/USD. I’ve taken 2 daily trades so far today already as well.
We’ve got several weekly charts on, and at the beginning of this week, the beginning of August, we took monthly chart trades as well, all for our clients to follow, learn from, and hopefully profit from as well.
Blueberry Markets as a Forex Broker.
If you’re looking for a really good broker, I can highly recommend Blueberry Markets. I’ll put a link to them. They’re a great bunch of people, with really good spreads, lots and lots of markets on their MT5 accounts, and very fast withdrawals as well.
So if you have any other questions, don’t forget to email me directly at Andrew@TheForexTradingCoach.com and I’ll see you this time next week.
Bye for now.
Episode Title: #645: The Trading Mistake That Cost Him 5 Prop Firm Accounts
Find out more about Blueberry Markets – Click Here
Find out more about my Online Video Forex Course
Book a Call with Andrew or one of his team now
Click Here to Attend my Free Masterclass
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