Lessons Learned after I Lost Sh2 million Trading Forex

Rufas Kamau is a research and markets analyst at non-transaction forex broker, Scope Markets Kenya.

He shares some valuable lessons about fx trading, money, and entrepreneurship that he has picked up along the way.

Learning to manage my portfolio and earning profits by trading currencies and stocks online is my biggest milestone until now. It took ME a long sentence to learn versatile strategies from the internet without a professional to guide me. In my early trading years (2013-2017), I would read books, tutorials, wait on live webinars, take heed to podcasts, and do the information on my live account. Sometimes I would make profits, sometimes I would misplace everything in my account. I ne'er gave up. Eventually, I learned risk management and improved on my trading discipline. This is what transitioned me from a noob to the trader I am now. In my Old trading days, I would depend on my forex trading account to pay bills and that did not conk very well. In a uncool trading month, I would find myself paying my bills from my invested capital.

I accustomed invest my surplus income after spending. Let's say your monthly income is Sh70,000. Disbursal this money on your bills and then investment the difference is not rightist. The best style includes crucial the investing amount first, setting it aside, and then surviving on the balance. Before I realised this, my nimiety income, the one destined for investing, would live sometimes negative.

I once lost Sh2 million trading forex. I attribute the loss to my lack of discipline in my primeval trading years. I had built the portfolio up from Sh300,000 and was very excited to have reached Sh2 million. This made me overconfident, and I began taking bigger trades with larger risk of infection pic. I learned that your ain emotions and expectations fire be your enemy in trading.

I still have a challenge saving money. This is because I tend to persuasion every single shilling lying in my bank account as investable. I feel like this money should be making Pine Tree State more than money. Sometimes I fall under fluidness traps when I have used my nest egg to buy a stock and then a cash emergency forces me to get a small loanword from a banking company or fluid app to survive. Step by step, I am learning to build an pinch investment trust.

Investing archaic is like qualification your own gold in the backyard. New technologies are coming up every day that are changing the room we live and interact with each other. People who invest in these technologies are most probably going to personify the millionaires of the future. Buying shares of these industry-changing leaders may create enormous wealth in the next 10-20 years. Don't invest in 'Unmatched day'; pull through 'Day unmatched' instead.

I have through both business and employment. Entrepreneurship is marketed as the trump since there is a vast potential for income growth while Book of Job salaries lean to be viewed as undynamic. However, I tend to view employment as the base foundation where most entrepreneurs study and progress themselves before venturing out. If you have the funds and the bourgeois skills, go for IT. It's approve to arrive employed to chassis capital.

Courtesy/ Saturday Magazine

Source: https://nairobiwire.com/2021/05/lessons-learned-after-i-lost-sh2-million-trading-forex.html

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