Revenge trading
Six trades were taken without a meaningful pause.
Asim Majid’s Trading Breakdown
Asim started with a patient and controlled approach, but six consecutive Gold losses on May 18 led to increased risk, impulsive decisions and a daily drawdown breach. The key lesson is that stopping after repeated losses and protecting capital is more important than trying to recover losses immediately.
Quick Takeaways
Start with discipline: Asim’s first two trades were patient, controlled and profitable.
Stop after repeated losses: Six consecutive losing trades turned a manageable day into a drawdown breach.
Never increase risk after losses: His position size increased from 0.5 to 0.7 lots while losses were accumulating.
Set personal trading limits: A trade limit, loss limit and cooling-off period could have helped protect the account.
Trader Profile
DetailInformation
Trader | Asim Majid |
Account Size | $60,000 |
Market | Gold, XAU/USD |
Early Trades | 2 wins |
Profit Before May 18 | +$1,277.80 |
May 18 Trades | 6 losses |
Loss for the Day | -$3,071.30 |
Closing Equity | $58,199.90 |
Daily Drawdown Threshold | $58,210.78 |
Breach Margin | Approximately $10.88 |
Primary Mistakes | Revenge trading, increasing size and impulsive execution |
Outcome | Daily drawdown breached |
The Story Overview
How Six Consecutive Losses Breached a $60,000 Account
Asim Majid started patiently, placing only two trades over 11 days. Both used defined Stop Loss and Take Profit levels and produced a combined profit of $1,277.80.
Then, on May 18, everything changed. Six Gold trades were taken in one day, and every one ended in a loss.
Failure Story
A Patient Start
Asim’s first Gold trade used a 0.5-lot position with defined risk and closed for a $1,269.50 profit.
Six days later, he recorded another controlled win of $8.30 on GBP/USD. His patient and selective approach appeared to be working.
The Day Everything Changed
On May 18, Asim placed six Gold trades and lost every one.
His position size increased from 0.5 to 0.7 lots while he was already losing. He also switched repeatedly between buying and selling, reacting to previous losses instead of following a clear directional plan.
Six Trades, Six Losses
The six trades produced a combined loss of $3,071.30.
His final trade lasted only 76 seconds and was closed manually at a loss. The account’s equity fell below the daily drawdown threshold by approximately $10.88, causing the account to fail.
Anatomy of the Blow-Up
The Beginning
Asim started patiently with two controlled and profitable trades over 11 days.
The Decision
On May 18, he continued trading Gold after the first losses.
The Mistake
He increased his position size and repeatedly switched direction while losing.
The Result
Six consecutive losses pushed the account below the daily drawdown threshold and caused the account to fail.
““In order to learn how to earn money, you need to learn how to lose money.””
— Karim Yousfi, CEO of Audacity Capital
What Went Wrong?
Increasing risk
Position size rose while losses accumulated.
Direction switching
Asim repeatedly changed direction without a clear edge.
Tick scalping
The final trade remained open for only 76 seconds.
No daily brakes
There was no personal loss limit to stop the session early.
What Asim Should Have Done
After the first two or three losses, Asim should have stopped trading and reviewed the market.
Reducing his position size, taking a cooling-off period and setting a personal loss limit below the official drawdown threshold would have protected the account.
After the first few losses, Asim should have stopped trading, reduced his risk and reviewed the session before taking any more trades.
Lesson Every Trader Should Learn
Lessons Every Trader Should Take From This
- Never increase your position size after a loss.
- Set a maximum number of trades and a personal daily loss limit.
- Repeatedly switching direction is often a sign of emotional trading.
- One undisciplined day can erase several disciplined ones.
- Drawdown rules must be respected down to the final dollar.
Final Takeaway
Asim’s account did not fail because of one bad trade. It failed because six losses were allowed to continue without a pause.
A trading day without brakes can undo weeks of patience in a few hours.
Before Your Next Trade
Ask yourself:
- Am I following a setup or reacting to my last loss?
- Has my position size increased after losing?
- Have I reached my daily trade or loss limit?
- Am I switching direction out of frustration?
- Should I stop trading and return tomorrow?
If the plan has disappeared, close the platform.
Success Follow-up
Every Failure Has a Success Story
Every trading failure can become a valuable learning experience. By understanding what went wrong, improving risk management and staying disciplined after losses, traders can turn setbacks into better decisions and stronger trading habits.
Related Failure Stories
Allen Gold
Allen Gold’s account suffered from excessive position sizing early in the trading period, with trades reaching 75 lots and causing significant losses. Although he later reduced his position sizes substantially, the early damage, inconsistent execution and repeated re-entries ultimately contributed to an absolute drawdown breach.
Simone Pastore
Simone Pastore began with disciplined trading, using sensible position sizes, stop-losses, and take-profits. However, after the first few losses, he repeatedly re-entered losing trades, increased his exposure, and abandoned his risk management plan. An 11-trade losing streak resulted in approximately $23,291 in losses and an 18.60% drawdown, demonstrating how revenge trading and poor discipline can quickly overwhelm a trading account.
Wyeeth Louw
Wyeeth Louw built a strong seven-trade winning streak, earning approximately $3,650 across Gold and Bitcoin. However, trading without a stop-loss or exit plan led to two unmanaged Bitcoin trades that lost approximately $9,277, wiping out all previous profits. The story highlights the importance of defining your risk before entering a trade and never relying on hope instead of a disciplined exit strategy.