The financial markets is littered with the corpses of failed forex traders. If there is a body count of those who lost their shirts to the market, it would outnumber the dead of the Vietnam war We should focus on lessons of such failures and make sure that we do not replicate them again.

Which Forex Failure Are You? Horror Stories from The Market

Mr. Greedy

He started out like most people and got a decent education so that he could dominate corporate, get a good career and earn a nice income. Mr Greedy was a prosperous businessman. Mr. Greedy wanted more, so throughout his career, he used the money he received and started his own business. Mr Greedy has been working hard to develop and expand his company to a point where he has become a multi-millionaire.


Mr. Greedy had been set up for life, his company was doing well and things couldn’t be easier. But he wanted more than his fair share, so Mr. Greedy began to search for other ways to make even more money. Mr Greedy discovered forex trading and discovered that when it came to potential revenue, the sky was restricted. He was quite overconfident in his ability to take on the markets and produce wealth beyond his wildest expectations, since Mr Greedy was already a prosperous businessman.
Mr. Greedy invested heavily in the markets and soon found that the returns he originally predicted were not really getting him. So Mr. Greedy spent more money and traded more vigorously, and began to realize that his money was disappearing even more quickly. Mr Greedy was not used to this form of loss and poured even more of his money into the markets in his rage and tried even more violent trading strategies.


POOF then! Mr Greedy had lost all the money he had saved, but he was not done yet. Mr. Greedy sold off what was left of his business, got the bank’s loans, and went all in. Mr Greedy was an emotional time bomb with all on the line now, and his third attempt to make money from the Forex market bankrupted him.


At the local supermarket, Mr. Greedy is now a shelf packer struggling to pay off his over-bearing debts.
The lesson: Mr. Greedy felt that he might apply what he had learned to the Forex marketplace in the real world, which is far from reality. The lessons you learn from your daily life, as we often point out, do not fit well in the markets. Things like, the more I work, the more I’m going to make.


The desperate and greedy attitude of Mr Greedy to the market killed him easily. To make matters worse, Mr Greedy began to revenge trade when matters were not working out in an effort to recover his losses plus some improvement that only accelerated his path to bankruptcy.


It is also said that successful businessmen, doctors , dentists, engineers, etc. are some of the biggest losers in the market because they feel their success in life will fall into the markets automatically. Just because you have been good in other fields doesn’t mean that when it comes to Forex trading, you will be. The Forex markets are on a totally different level, for all it’s a level playing field.

Which Forex Failure Are You? Horror Stories from The Market

Mr. PERFECT

Mr. Perfect was a trader we met from a chat room with the public. He was the sort of trader who liked to center the spotlight on himself and was a bit of a ‘know it all.’ By filling the chat room with his Forex talk in a really ‘in your face’ style way, Mr Perfect typically got everyone’s attention. He demanded attention and ‘respect for the godly trader.’


His Forex preachings were often chaotic and seemed to shift from day to day, but his Mr Perfect character managed to get him in the chat room and the related forum just as follows. Mr. Perfect was so overcharged by his current role as a trader god that he wanted to open up a public thread with a title suggesting that in a 1 year time frame he would turn $100 into 1 million dollars. He will take the newbie traders by the hand in this thread and show them each trade he made and describe his reasons for doing so.


Mr Perfect began to deliver on his promise and posted trades he took, but as they were rich with Forex babble and saturated with Jargon, no one could seem to make sense of his explanations. His motives for taking trades, not to mention, appeared to be contradictory and his money management made little sense. Mr Perfect was steadily making some returns, amid the uncertainty and inconsistency, and the interest on the thread continued to grow. Mr Perfect was getting the popularity and publicity that compelled him to take the next step.


A controlled trading account was opened by Mr Perfect, where traders could invest money in their trading capacity. A trading copying tool was used to replicate any trades Mr Perfect took on his fans’ real trading account. He marketed the best forex signals, so that traders jumped on the bid.


The managed trading account of Mr Perfect gained a lot of publicity and he had quite a few investors on board.


Not too bad in just over a month, 18 percent. Around mid-February, his followers were fascinated and began to sign up. With his confounding business preachings, Mr Perfect started to flood the chatroom and forums.

All were impressed with the initial success of Mr Great, but things began to change over the next few months.
The success of Mr. Perfect was flat and people were beginning to lift their eyebrows.
Not only was he not making any money for his fans, he was costing them money with cost spreads. Mr Perfect was a ‘scalper’ which implies that at a time he opened lots and lots of trades to make just tiny profits.


There were no severe casualties yet, so his signal service continued to be popular. As ever, Mr. Perfect was always optimistic and proceeded to preach his things in the chat room and forums while we were closely watching him.

Finally, under strain, Mr Perfect crumbled. The number of trades opened at one time increased, and like a cancer, he slowly destroyed his followers’ accounts…

He never managed to make any money for them as most people jumped on board his managed trade service about mid-February. Mr. Perfect was opening 30 trades a day at one point, which didn’t really work out that well. The spread costs ruined the accounts of the live trader, but the stats of Mr. Perfects were barely affected, as much as he used a demo account to send his signals.


Mr. Perfect shifted very quickly from Hero to Zero, his thread was quickly filled with derogatory feedback, and he was no longer accepted in the chat room. Mr. Perfect lost a lot of people’s money, and nobody walked away from the whole company.


The lesson: Mr. Perfect felt that he knew everything about the markets and that all his technical analysis was perfect. When he was actually relatively new to Forex trading, Mr Perfect had a lot of faith in his abilities as a trader and did not even have as deep an understanding as he did.


The expression ‘A little bit of information is a dangerous thing’ fits Mr Perfect well, as he taught himself a few basic concepts and turned them into an excessively complex, confusing format that he used to attract the attention of people.
Mr. Perfect was an attention seeker, not a skilled trader, had poor money management, and his trading approach was not consistent. We were just counting down the days when it was all about him falling apart. Really, we were shocked by how long he stayed.


The real mistake was the ‘high frequency trading tactics’ of Mr Perfects and the poor money management that comes with it. Mr. Perfect was looking for income of just 3-5 pips, but he endangered 20-50 pips to do so. This is called the management of negative risk / reward money and is a sure fire way to burn yourself up in the industry. It was only unfortunate that he had brought with him a number of other unsuspecting traders.


We agree that Mr Perfect will possibly make a good seller of a car and should stay away from trading in Forex.

Mr Gullible
Mr Gullible was very new to Forex trading, and used to hang out in a public Forex chat room only opened by a famous forum.

We have always tried to engage with Mr Gullible in intellectually stimulating discussion on Forex subjects, but we have never been able to sustain that degree of discussion. Mr Gullible would always move the subject to some scalping or day trading scheme that he had just noticed and was deeply involved in.

By attempting to exchange news releases on the economic calendar, Mr Gullible eventually kicked off his business career. We knew that news trading was risky, volatile and triggered erratic market movements, so it was no surprise that Mr. Gullible ‘s news trading had not been very successful.

Finally , Mr. Gullible stumbled across the website of a famous Forex trading robot and was absolutely drawn in by the Clickbank sales page which promised 500000% return on investment

Yeah, Mr. Gullible told everyone in the conversation room of the 500000% win rate, what could go wrong, look at all those statements, I mean they’re even giving you a guarantee! So Mr Gullible bought and incorporated the Trading Robot into his trading network.

Note that Mr Gullible is only representing a small group of traders in this story, 3 to be exact. All 3 traders pooled their life savings together and gave complete control of their hard earned money to the Clickbank Forex trading robot. Uh oh! Uh, oh! As the sales page said it would do, the trading robot did not do. Instead of minimizing their losses, one of the Mr. Gullibles opened the trading robot’s internal programming and ‘tweaked’ the settings to his taste. A few random settings had changed what he had already done and really intensified the possibility that the trading robot would relate to the markets.

Much of their pooled life savings were lost in just 3 days, the robot had made incredibly poor trading decisions, and never turned a profit once. Only one of Mr. Gullibles was able to walk away with some of his savings, but compared to what he originally spent, it was a church move.

Mr. Gullible was forced to sell his father’s used cars, Mr. Gullible 2 used money he couldn’t afford to lose, stranded himself during some rough times in Egypt, and Mr. Gullible walked between his legs with his tail.

The Lesson: For every 9 Forex scams or lousy goods, there are so many Forex scams out there; you’ll probably find 1 decent trading scheme. This kind of saturation makes it difficult to find a successful Forex Trading Course to get your trading set in the right direction.

Commercial Automated robots for Forex trading always They are typically built around the current conditions of the industry. This gives them a short shelf life, as market conditions are constantly in a state of transition, and the output of the trading robot instantly crumbles with each shift in market dynamics. Remember the vendors of such algos make money selling robots and not trading themselves.

Even if a reliably successful trading robot was created by anyone, it would not be sold for $200 on the internet. In a safe, it will be locked away while the developer reaps the rewards.

Don’t be Mr. Gullible and fall for these tricks of marketing. If you adopt a simple trading method that can clearly give you the edge in your trading, there is only one way you can become successful on the market.


MR LAZY

Mr Lazy was a fellow trader whom we knew. As he was overwhelmed with the amount of Forex data and strategies available, Mr Lazy was looking for some guidance. As he was interested in learning how to become a successful price action trader, we took Mr Lazy under our wing.

Well, we quickly regretted that decision, expecting Mr. Lazy to play the part of a keen student, but he turned out to be an irritating parasite instead. My Lazy had no intention of studying price action trading for himself, while we were talking about what trades we were going to take he just wanted to bludge off our experience and be a fly on the wall.

When we found that Mr. Lazy was not receptive to the information we were giving him, we soon caught on to what was happening and tried to gently cut him loose. For us, the unfortunate thing is that he had our private email and Skype records. Hmm! Sigh!

Mr Lazy was hounding us every couple of hours for trading signals, even at the most inappropriate times. When some critical Greek elections were taking place, we had our fingers on the short trigger for EURUSD. The elections in Greece were broadcast in Greek. Scotch is from Canada, and he had to be swift to try to keep up with what was going on in the live election stream on the Google translator. Mr Lazy bombed Scotch with messages every 5 minutes throughout the entire process asking him if he should still go short.

Eventually, out of annoyance, we gave him a cold shoulder before he got the message. We later learned that Mr. Lazy found someone else to bother and got signals from his work college on the 15 min map that had come up with a ‘miracle RSI crossover plan.’

This was our way out, and we got rid of him at last.

The Lesson: Don’t be a Mr. Lazy and try to leech off trading decisions of other people or look for Forex signals. First of all, these traders may be the world’s worst traders, and you are blindly pursuing them as they walk you straight off the ledge, holding their hands.

Trading in Forex is a personal journey that you should take as a human. You are accountable for your own trading decisions, get the right training and become a trusted trader so that you do not have to rely on other traders to make your trading decisions for you.

The MR RUSH
Mr. Rush, unlike Mr. Lazy, was another keenly aspiring Market Action trader who was hungry for information and took all the advice we offered him. This was a breath of fresh air, no irritating emails or messages from Skype, just questions that would further the learning curve of Mr Rush with market action trading.

However, as the name indicates, Mr Rush tried too fast to become an expert and did not demonstrate much patience. In order to become a skilled trader, Mr Rush had to take all the right steps, but he wanted to complete those steps yesterday. Before he even knew how to walk, Mr Rush was trying to run.

The impatience of Mr Rush finally overwhelmed him. On the 1 hour map, Mr Rush began taking every single pin bar formation, across a variety of markets. At times, Mr. Rush would have opened up around five intra-day trades while trying to search for more probable opening trades. The impatience of Mr. Rush had pushed him to shorter time frames and forced him to start trading over. He also began by developing a trading blog to document the steps of his trading journey, from a nobody to a millionaire.

He was washed out of the markets by his overtrading and lack of experience, his blog went dead, and we never saw him again.

MR MESSY
In an old IRC Forex chat space, Mr Messy was an interesting trader who had a very good social presence.

For much of our laughter, we have Mr. Messy to thank. Yeah, he wasn’t trying to be sarcastic, 100 percent of the time he was genuinely serious, but he had a really twisted perception of trading that we found incredibly amusing. Mr Messy would also frequently post his views, trades, and maps. Let me share two snapshots with you containing the study of Mr Messy that he shared with us.

You needed his ‘master map’ to really make sense of this chart, which had color-coded levels that were essential to unlocking what he referred to as the ‘holy grail trend line.’ We weren’t privy to the master chart coded in color.

Yep, you can see why we’ve used Mr. Messy in this story to represent the man. Mr Messy was one of those traders who merged into one map about 50 different trading strategies and tried to execute all of them at the same time. Not just that, but he also tried to take into account investor sentiment and economic news releases in the mix.

Mr. Messy would deploy all kinds of exotic Forex indicators that he discovered, leaving no stone unturned, from all the dark corners of the internet. Mr Messy also used martingale money management, which essentially means he would open up a fresh trade against the momentum every time the market moved against him, seeking to predict a bottom or peak in the market.

One day, he displayed a screen shot of his open trades, bought a bearish pattern all the way down and managed to accumulate a total of 50 open trades against the momentum of the market. Mr Messy … is a mess and has made things too hard for himself to trade.

The Lesson: Trading is not expected to be difficult. In simple price action approaches and by keeping our charts free of confusing indicators, we have found great success. It’s not difficult to find out why Mr Messy failed, his trading tactics were a mixture of mixed together bad strategies that made up a super bad trading strategy.

The Takeaway: Learn from the Forex Corpses and Survive


We’ve shared real life stories of traders in this article who didn’t make the right decisions when it came to their trading career. Of all the types above, one Filipino trader exhibited extreme narcissistic traits and blew hundreds of millions in investors accounts. Worse, his ethics and morals rivalled that of the devil himself- leading to a massive pit of legal action.

Are you about to trade? Keep you greed, emotions and analysis in check. Replicating the very same dumb emotional decisions is often the curse of every newbie trader.

Indeed, these failed traders must certainly have realized subconsciously thattheir current strategy was not going anywhere and were digging themselves into failure. Don’t same mistakes, keep trading fast, keep your feelings in check and follow a clear trading strategy.

Cheers for your success in trading.