I Wanted to Be a Millionaire from $5 When I Started Trading but NFP...

Hello, beautiful person! My name is Rutendo. Welcome to my blog. It’s NFP Friday, and I’m feeling nostalgic about the early days of my trading journey. I vividly remember the first time I traded on a Friday—an NFP (Non-Farm Payrolls) Friday, and completely blew my account without understanding what had happened. But let’s rewind a bit and start from the beginning.

How It All Began 

Fresh out of college with a degree in Financial Engineering, I thought to myself, “Why not try trading?” After all, I had taken courses like International Finance and had plenty of time on my hands since I hadn’t yet landed a job. With zero capital but lots of curiosity, I decided to dive into the world of trading. I opened an account with XM because of its low $5 minimum deposit. My first account grew to $8, then $40—only to crash on that infamous NFP Friday. Looking back, it was all beginner's luck. I knew nothing about NFP or its market impact until I lost that $40. My heart was broken, but honestly, I deserved it. I was experimenting blindly without the proper knowledge or preparation. 

Learning the Hard Way

Determined to improve, I signed up for a mentorship program that provided courses and resources. Unfortunately, the materials were hard to understand, and the mentorship lacked personalized guidance. I also came across the BabyPips book, printed the entire thing, and tried to read it. But I soon realized that having a Financial Engineering degree didn’t mean I was ready for the world of forex trading. Mentally, I was unprepared, and the mentorship program didn’t meet my expectations, especially since I couldn’t afford the premium group for one-on-one support. During this period (late 2019), I mainly traded EUR/USD because I had heard it was a popular and volatile pair. I avoided demo accounts, feeling they weren’t realistic enough. But in hindsight, this was another mistake.

Lessons Learned and What I’d Do Differently 

 If I could start trading all over again, here’s what I would change: 

1. Build a Strong Foundation Having the right knowledge is crucial. Today, there are countless free resources, including YouTube videos and broker-sponsored courses, that can give you a solid starting point. For example, prop firms like FTMO offer courses on their academy and free trials with strict trading rules, which can help you develop discipline and strategy before financially committing to a mentorship program.
2. Invest Wisely in Capital Starting with just $5 and expecting to become a millionaire is unrealistic. While some have succeeded with minimal capital, I would focus on funded accounts through challenges like FTMO. These accounts give you the capital you can work with and allow you to trade under set rules, which can be incredibly beneficial for beginners.
3. Join the Right Community Being part of an active trading community can save you from costly mistakes. For instance, someone might remind you about major events like NFP, potentially saving your account. However, be cautious about signal groups, especially those that rely heavily on signals being given by the group admin(s) only. Learning to trade independently is a far more sustainable path.
4. Keep Learning and Upskilling Understanding forex terminology and market behaviour is essential. Even now, I prioritize upskilling to refine my strategies and stay ahead. Building a strategy and being able to analyze markets effectively will set you apart.
5. Explore Other Currency Pairs While EUR/USD is a popular choice, it’s not the only option. Volatile pairs can be influenced by various factors, and as a beginner, experimenting with different currencies can help you find your niche. In my case l chose EUR/USD because everyone was trading it but had l studied other pairs maybe l was going to get my edge quicker. Today, I primarily trade XAU/USD (gold) alongside volatility indices, leveraging my knowledge of U.S. markets.

Reflection: NFP Fridays Then and Now 

Six years later, my approach to NFP Fridays has drastically changed. If I still had that $40 account, I wouldn’t trade on days like today. Instead, I’d observe the market, analyze its movements, and look for setups post-news with proper confirmation. Staying out of the market during high-volatility events can often be the smartest move.

Trading is a journey, and everyone’s path is different. Whether you’re starting with $5 or $5,000, the key is to invest in your knowledge and approach trading with patience and discipline. Learn from my mistakes and take your time to build a strong foundation. 

Best of luck on your trading journey, and remember: it’s not about how you start, but how you grow. See you in the markets!