This is gonna be good.
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I'd like to state first and foremost that this story isn't about me. It's about a friend of mine. A female actually. Her name is Alice.
Alice is one of my role models, close friends and possibly the greatest female trader I've ever met.
Alice predominantly trades the Forex and penny stocks. She's always hated crypto for some reason, mostly because she's a Christian and her religion speaks of "the antichrist", and crypto is the closest thing to that.
Anyway, religious bias aside, she was privileged to have pretty well to do parents, who were able to give her the capital to fund her trading accounts.(Two of which she blew)
Some time back in 2018 was the turning point in her life.
Predominantly, Alice was a breakout trader on the Forex, and she mostly shorted on the stock exchange.
She was a wild one, using 1:50 leverage on a standard lot size in the Forex (a standard lot size means that a pip gain is a $10 gain). This meant that for every pip she gained, she was gaining a whopping $500, and for every pip she lost, she was losing $500. She traded the majors mostly, and sometime traded some minor currencies.
Equally in the stock market, she shorted very volatile penny stocks, often of companies that were ok bankruptcy. This usually yielded a big profit, as most people were longing these companies shares for some reason.
Anyway, it's July 2018. She hasn't made a trade the whole day.
Then her setup forms on EUR/USD.
It was like a dream come true.
I was actually at her house that day, but I had just left before the set up occured. She called me back on the phone, and I had to drive back to her house to see her take the setup.
She had already taken it before I got there. She was long EUR/USD just after some positive economic news had sprung.
Remember that 1 pip meant $500 for her. Very risky, but very rewarding as well.
EUR/USD ranged for a bit, and then just popped like an overgrown purple that was just pricked.
It moved up about 50 pips right there, and then 20 5 minutes later, making it a total of 70 pips in less than 30 minutes. Remember, her profit was $500×70pips=$35000.
She was ecstatic. I had never seen her like that before. She kept on saying that she was going to be a millionaire, over and over again. I was too dumbfounded because I didn't even understand the Forex back then. I wish I did though, so I'd have warned her about what happened next.
She left the pair open overnight, because she was neck deep in profit.
When she woke up, the pair had moved an extra 100 pips, leaving her at 170 pips profit, or $85000.
She was already at 1R, which is full risk. But she decided to bet the FARM. She put her whole $50000 account on the line.
Then EUR/USD popped. Her account value was just under 1 million dollars. About $300 to 1 million. I was astounded when she told me over the phone. I had never seen a million dollars before, so I asked for a screenshot.
5 minutes later, I got one. That would be my first time of seeing a million dollars that I didn't write myself. It was REAL. I saw this.
Then, at the very peak, she opened a sell order to cash out the winnings. It was lambo time for her.
Then the shortened came in. Before she could fill in her sell order, the shorters dropped the price by 30 pips. She just lost $15000, but $15000 minus $1 million is nothing. It's like taking a grain of sand from the beach.
But because of the fact that she was using a margin account, her margin requirement was under. Few minutes later, she got a margin call. Her account was closed down.
She has just become a millionaire, and lost it all in less than a minute.
What happened next wasn't very pretty.(thankfully no suicide).
She still trades today, and one of her accounts is at 500k. She lives off her trading now, but I don't think such an opportunity comes twice.
That's her story guys. Thanks for reading.
Compiling this story, and shortening it so it's actually readable and not just a long bunch of words took an awful amount of time. Show me some love in the comments!