Quoting PeterFMDisliked...
Follow your rules every trade...
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PeterIgnored
- Joined May 2005 | Status: Member | 1,494 Posts
In trading, there is no bullshit. You either make money or you don't.
Do you believe tight stop-losses cause losses in the long run? 76 replies
Do you believe fixed stop-losses cause losses in the long run? 16 replies
multi-row arrows 2 replies
I have 9 losses in row. Best MM ? 13 replies
Can you handle 40 losses in a row? 17 replies
Quoting PeterFMDisliked...
Follow your rules every trade...
...
PeterIgnored
Quoting conasoungaDislikedI've lost 60% this week, after making 96 pips last week. I didn't loose that much money, as I'm trading a mini account. The problem with starting a mini account with say 300 dollars is you can't practice proper money management. But I'm still in the game after 2 months live and I'm still learing from my mistakes.. My loses this week were from greed, not sticking to my own rules period, so I have to learn to control that part of the beast that resides in me. This is the third time I've drawn down 50% or more of my account. I will take a break, and go over my successful trades, then identify my mistakes, and approach the market again with the same conservative approach that I did when I was winning my trades. So take a small break, and try, try again.
Good luck!Ignored
Quoting mrgreenDislikedThe hardest thing to learn is that it is not about the money, its about the trade. MOney is just how u keep score.Ignored
Quoting mrgreenDislikedThe hardest thing to learn is that it is not about the money, its about the trade. MOney is just how u keep score.Ignored
Quoting mrmikalDislikedYou can easily learn proper money management with only $300. The key is finding a broker who trades micro-mini lots (0.10 a pip). Then we're talking the equivalent of having $3,000 in a mini account or $30,000 in a standard account.
I always recommend that people starting with small amounts need to learn proper money management from the get go. Of course we want to grow our accounts as fast as possible, but trust me if you start out with TOO LOW of an account and just decide to over leverage or over extend yourself, you will just say "no big deal, it's only $300" and gamble away. Some of you will double your accounts, and others will blow them out on a single trade...but neither of those camps will have learned a thing. Double that account using the proper < 2% risk rule and then start increasing your risk factor. Trust me, you'll find that over time you'll have learned a great deal more trying to turn $300 into $600 at 10 cents a pip than you would had you gambled $1 a pip.Ignored
Quoting aparsaiDislikedUnfortunatly I'm a lone trader and have nobody to immediately be in touch with. However, I keep refering to our forum and seek for advice from good buddies like you. Thanks.Ignored
Quoting philmcgrewDislikedIf you have a reliable system and you have done your backtesting then you would likely find out that 3 consecutive losses are very acceptable and completely within the accepted distribution of wins and losses.
If you are troubled by 3 losses then run away from any type of trading as fast as possible.Ignored
Quoting aparsaiDislikedTen pips is roughly equivalent to 2% of my account. In most cases I enter and exit a trade in a few minutes. I also move my S/L to B/E +1 or 2 pips as soon as I get a chance to avoid losses. That's why so far 68% of my trades have been winners but some ended up with only 1 or 2 pips profit. I hope this can help.Ignored
Quoting aparsaiDislikedI lost three times in a row. I lost a total of 42 pips (2+6+34) in the last two days. I don't know what went wrong but I lost about 9% of my margin in about 48 hours.
Since I opened my latest live account about 45 days ago this is the first time that I encounter such a problem (I'm up 151 pips in total since then).
I fear to approach the market. On the other hand I want to compensate what I lost. This mixed emotion is a killer and I don't know how to deal with it.
Any ideas that could possibly help me to overcome my fear and make a wise decision?Ignored
Quoting xxDavidxSxxDislikeddon't worrie, 3 losses is nothin and your loss sizes are very small.
Your either starting too small of an account, or over leveraging it too. But a 9% draw down is nothing either. If your panicing on a 9% draw down your gonna have a heart attack when you hit a 50% draw down.
I suggest you get back on a demo and get used to trading your system, and get used to taking losses and do it enough to be confident that the next winning streak is just around the corner.
Befor you trade forex you must prove to yourself your system works on a demo, and realize what the max draw down is of this system. Trade the demo with the same $ ammount you plan to trade live. If you tend to experiance 50% or more draw down then rethink your method. If your breaking your methods rules will be a big factor too. Are you adhearing to the rules like you should? And rething your money management system.
Get to where you can grow a demo like its nothing. And once you can do this consistantly you'll still struggle in real trades at first because the feel is different. emotionaly.
If you cann't or haven't doubled or trippled a demo a few times then your definatly not ready.
DaveIgnored
Quoting conasoungaDislikedI've lost 60% this week, after making 96 pips last week. I didn't loose that much money, as I'm trading a mini account. The problem with starting a mini account with say 300 dollars is you can't practice proper money management. But I'm still in the game after 2 months live and I'm still learing from my mistakes.. My loses this week were from greed, not sticking to my own rules period, so I have to learn to control that part of the beast that resides in me. This is the third time I've drawn down 50% or more of my account. I will take a break, and go over my successful trades, then identify my mistakes, and approach the market again with the same conservative approach that I did when I was winning my trades. So take a small break, and try, try again.
Good luck!Ignored
Quoting TheBreezeDisliked...
TRADE RIGHT AND THE MONEY WILL TAKE CARE OF ITSELF…"
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Quoting conasoungaDislikedI just learned something new today. Thanks, I did not know that you could get micr mini accounts. I will check into this. I though that I would have to overcome the odds and build my account. I mean that I've got the money to put into an account and trade one dollar pips with 2% risk, but when I first started trading live, I figured I would start with a small amount and build it up... That was before I learned about money management. I will check into that mrmikal. I appreciate your wisdom.Ignored
Quoting thehunDislikedBingo. That is the point! You are going to lose. On every single trade, you may lose, it is possible. There is no system out there that guarantees a win every single time you go out to trade. No matter how much optimizing and back data reflitering they are doing on any of the systems you see on this board, Sidus, for example (dam over 100K of views), no system will ever be perfect. You have to walk into every trade knowing that this is how much you will win, and this is how much you will lose. If your system has been tested and shown that it is an overall winner, then you are good to go. If the losses are getting to you, then this is not the game for you. Try Yahtzee. But, if you can wrap your head around the fact that this is a LONG TERM venture, then you have to accept losses; just keep them as small as possible and you will do fine.
Take the ego and emotion out. Accept that know matter how you look at it, ANYTHING CAN HAPPEN. Do that, and the money will rain.
The Hun.Ignored
Quoting aparsaiDislikedAs far as I know, IBFX offers micro accounts. I don't know if they are a reliable broker or not but at least you can try their micro account for a whild. (www.interbankfx.com).Ignored
Quoting FXopportunistDislikedHello aparsai,
That can happen to anyone and does. The 34 pip loser stands out to me. The question I have for you is what time frame are you trading??? If your average winners are 25 to 40 pips like mine you shouldn't allow any trade to go 34 pips against you. If you trade a larger time frame and your winners are 100 pips then that is probably normal. I ALWAYS use what I call a catastrophic stop that I do not allow myself to overide just in case I am not thinking clearly in a bad trade. If you decide to take this recomendation make sure the size of your stop is appropriate in relation to your win percentage and average winner.
I trade intraday and the key for my money management is to have a solid entry plan very close to what I am deeming to be support or resistance. This is a tremendous mental help because I know why I took the trade and if that level fails then I have no doubts about getting out. Use good exit strategies to take a postive feeling out of the trade. Say to yourself, ya, that trade didn't go my way but I executed my stop loss strategy perfectly and preserved my capital. This keeps it all positive for me.
Other than that I say no worries. The most likely scenario is that the market conditions just didn't favor your strategy, it happens. You could probably spend some of your anxious energy looking at what the market conditions were so maybe you could identify them in the future.Ignored
Quoting Captain PiptasticDislikedWith a 68% win rate over 50 trades you have roughly an 85% probablity of seeing 3 losses in a row.
As for not following your own rules. Well, that blows the probablities right out the door.
Probablities are your friend, I hear trends are as well.Ignored