Between 2008 and 2010, I was hooked by Forex in part because I desperately wanted to retire and Forex seemed to me the only investment vehicle that would allow me to retire.
In those years, my total realized loss amounted to JPY 33,859,551 ($338,860 if $1=JPY 100). I think there are three reasons for this significant loss. First, I bet against Japanese yen. Second, I didn’t put any loss cut. Finally, I was rich then (my saving was JPY 80,000,000). In hindsight, it was an insane investment strategy. At that time, I was overconfident in my bet and I couldn’t realize loss until it was too late.
In 2011, I was too shocked to work, so stayed at home as an unemployed. But fortunately I still had some saving. I quit Forex and started to invest in dividend stocks. The yield at cost of my entire portfolio is now about 5.2%. What if I kept this lost JPY 33,859,551 ($338,860 if $1=JPY 100). Another $17,620 annual gross dividend income. Wow, I can retire now. I have made a couple of critical investment loss through my life. This Forex one almost killed me.
Of course , there are people who make good money out of Forex. In addition, Forex is the most efficient investment vehicle in terms of leverage. But I cannot make money out of it. It is too difficult to time the loss cut.
I have had some other investment big loss in my life. Please come back to read it later