WIPED OUT

Arigato, dear investor,

I want to share something personal with you today – a lesson I learned the hard way about what can happen when greed sneaks into our investing decisions. If you’ve ever felt the temptation to chase big returns, my story might resonate with you.

A few months ago, I decided to try copy trading on FP Markets. It looked like a dream – every week, I was making a steady 5% by following a trader known as Nacho Trades. Imagine, over 600 days of consistent winning trades! Week after week, my account grew, bringing in a reliable 20% return each month. It felt too good to be true, and my initial $100 investment steadily climbed with the rhythm of the trades.

That’s when greed crept in. Instead of following my usual cautious approach, I thought, "Why not add more?" I remembered The Safe Investor's advice to withdraw profits regularly, but this time, I ignored it. Instead, I kept funding my account, eventually reaching $1,500.

Then came these last two days. In what seemed like the blink of an eye, that account got wiped out, almost entirely. I watched in shock as my $1,500 dwindled to about $50. All it took was one wrong move from a consistently profitable trader. Even the most skilled, with hundreds of wins behind them, can stumble just once – and suddenly, it’s all gone.

What did I learn? Never get greedy, and never stray too far from the tried and true. For me, that’s ETF investing. Unlike the fast highs and crushing lows of Forex, ETFs have decades of stability behind them. The S&P 500, for instance, has delivered about a 10% annual return over the long term – and while that might sound modest compared to the quick gains in Forex, that steady 10% has immense power when you let it grow over time.

Thankfully, this lesson came at a relatively low cost. I only dipped my toe in with $1,500 to test the waters, and I’m okay with losing that amount because the bulk of my portfolio – over $800,000 in ETFs – is safe, steady, and growing. My foundation remains untouched, and I feel immense gratitude for that.

So here’s my takeaway: keep your portfolio balanced, test cautiously, and invest heavily only in what you genuinely believe in. Let’s all remember to protect our hard-earned wealth by sticking to investments that stand the test of time.

I hope you find this newsletter useful!

If no one has ever told you yet, I just want to tell you that you are an amazing investor who is capable of creating abundant wealth for yourself and your loved ones! Regardless of what setbacks you’ve faced before, they will make you stronger and wiser.

So keep going on your investing journey! Let’s improve and keep learning, so we can create greater wealth and happiness together! 😃 

Arigato!

Chloe
Arigato Investor