Trader builds $5 Billion position after realising he wasn’t trading in Demo account

Trader builds $5 Billion position after realising he wasn’t trading in Demo account

Harouna Traore, a Trader in France recently learned Trading from a Stock Market Institute in Paris was testing his skills in a Demo account. Traore opened a real trading account using Euro 20,000 during the Trading course.

He was using a british brokerage firm Valbury Capital’s platform and lost almost 1 million Euros. Little did he know it was the actual account he was trading on which got him surprised the moment he found that.

He says ” I was only thinking about my family “. Traore is a married man with two daughter, and he was thinking about the Million Euro loss.

but traders are audaciously bold, aren’t they?

He didn’t stop there and continued trading until he turned the loss into $11 Million profit firm cant keep profit

To explain the situation Traore called the Stock broker but the firm declared he was in breach of his contract and the holdings were both void and cancelled.

Traore later sued Valbury an Indonesia based financial Services for the profit of $11 Million profit realising but as per the company can keep up they did nothing unprofessional and wrong.

There has been a 15% declining in Valbury’s revenue from 2015 so this is a make or break case for the firm. As there is a Growth in the firm for more than $11 million,

Best Financial rule of thumb – The 50-20-30 budget rule

Best Financial rule of thumb – The 50-20-30 budget rule

The United States Senator Elizabeth Warren coined the 50/20/30 rule for income allocation. The basic idea of this rule is to put the disposable income of individuals to judicious use.

The rule states that after the deduction of taxes from the income, 50% of the amount should be spent to fulfil the NEEDS, 30% for satisfying the WANTS. Not to mention, rest 20% should be SAVED by the individual.

Needs

These are the expenses that are necessary for human survival. Such expenses include rent, medical expenses, groceries etc.


In addition, this category does not include any expenses that are dispensable or superfluous.

Wants

These are the expenses that can also be dispensed out and are not absolutely necessary. They may include eating out, Netflix subscription or high-speed internet.

Furthermore, They also include an up gradation to the needs of an individual, for example, choosing to eat costlier food instead of the less expensive one. Savings The last but most important part of your budget is saving. This includes making a contingency fund in your bank account, investing in mutual funds or in the stock market.

How to control your fear and make more profitable trades ?

Why most of the new traders make mistakes?

Fear is the reason behind most of the trading mistakes new traders make. Be it in terms of losing money, missing out potential profits or uncertainty, fear always comes along while trading. Here are a few tips on overcoming such fear…

Analyze your trade setups

No trading strategy is a full proof guarantee of profits. Every trader needs to realize that no amount of analysis can fully eliminate the uncertainties of trading, only then can he trade freely without fear. Deciding what trades you should take to is one of the biggest dilemmas for a new trader. Analyzing your previous successful trades and calculating their probability of repeating can help eliminate such confusions. Then, all you’ll have to do is to wait for a trading setup. If you are unable to do this, then you’re doing nothing but gambling even when there were high chances of the stocks generating high returns.

Prepare yourself well

Fear itself is afraid of confidence and preparation is what creates confidence. You can not make a living out of trading if you do not prepare and are dependent on others for trading. If you’re doing nothing but following others, you will never be able to overcome fear because there is always a plethora of aspects that are left unaccounted Before beginning a day, you should have the entire plan ready for the list of your stocks. You should be well aware of all the key areas of support and resistance, the amount of daily loss and what the float is. Prepare for as many setups as you can.

The risk in proportion to your account size

Perhaps, the biggest cause of fear while trading is to risk much more than what your account allows. For an instance, if you’re trading a Rs 15000 account on 1500 shares of X, you’ll find yourself shaking in fear. Youll either not stop where you’re supposed to or give up too early. It is always ideal to roll out 1-2% of your account to let the trade play and not put all the money at risk.

 

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