losing money

ovidius · (#1 (**permalink**))

Hello everybody!
I'm new in forex and as many people does, I lost almost all my acount in less than 3 months. What I did was scalping and this is what I realy like. But the real bad part is that in the last trades I lost my courage and everytime that I opened a position I did it in a wrong moment. These last trades could serve to enybody to make an exactly inverse (succesfully) entrances. I'm very disapointed but I don't want to give up. If anybody can give me any efectively good advices I'll be very gratefully. Sorry for my english. I'm from Barcelona. Thanks you all!

Pharaoh · (#2 (**permalink**))

First and foremost - trade on a demo account or on an account that lets you trade nanolots (1 cent per pip) until you get comfortable trading and can begin to show some signs of profitability.

There's no need to waste money while learning. Think of it this way - people who fly jets have to spend a long time learning how not to crash in a simulator before getting to sit in the pilot's seat.

Nancy Cheah · (#3 (**permalink**))

In currency trading, even top traders lose sometimes unless one is God.

Regards.

Stony · (#4 (**permalink**))

I disagree a little bit with Pharaoh. Of course you have to start with a demo to learn to handle the features of your platform and to develop a trading style. But trading with real money is quite a different story for psychologic reasons. To gather real experience you have to trade with real money, starting with small quantities. In advance, you should define the risk that you are willing to take (hint: not more than 2-3% of your equity should be at stake at one time), and you should develop criteria for opening and exiting a trade. Then start trading, and stick to your criteria. After some time, do a review and refine your trading style gradually. That´s it (but it´s difficult enough...)

Happy trading - Stony

Nancy Cheah · (#5 (**permalink**))

Yes, you're correct.

I also do that always.

Let's say when I've USD 100 in my account, the maximum I opened a trade shall be USD 2 and I'll walk away with, say, ten or fifteen pips.

That'll be more than enough for me.

When one trades demo accounts, there are absolutely no pressure no matter how real one can treat it but when one trades with real money, one shall be always on the edge.

Regards.

Realistic · (#6 (**permalink**))

That is the first post for me here and it's my honor, i know most of traders have read about money management, risk management, position sizing, stops, etc... So then what are the reason(s) you are still losing? Is the market beating you? Are your stops being hunting? Or are you simply giving your money away?

When you enter the TRADING JUNGLE, you are up against the best traders in the world. They are smarter, faster, have more money, have better equipment, better access to information... better everything than you do! What makes you believe you can win? What "edge" are you bringing to the table that will allow you to take their money?
What's the reason you see some currency pairs move over a 100 pips a day yet you're happy barely breaking even? What makes trading so difficult for you?

Best Regards

Nancy Cheah · (#7 (**permalink**))

I'd say that you still can secure excellent profits from time to time as long as you perform your homework well and not be greedy chasing after the rainbow.

Regards.

Stony · (#8 (**permalink**))

@ Realistic

I believe it´s possible to win in the forex market because I know 2 traders like you and me, who manage to win constantly. Don´t personalize the market! It does not matter how big, how fast and how good the big shots are. We are of no importance to them! For us tiny retail traders the only thing of interest is the movements of the market. Forget about what or who is responsible for them. We have to develop tools to cope with that moves. That takes experience and knowledge. It´s hard, but possible.

Stony (optimistic...)

ernest8fingers · (#9 (**permalink**))

Quote:

Originally Posted by Stony

I disagree a little bit with Pharaoh. Of course you have to start with a demo to learn to handle the features of your platform and to develop a trading style. But trading with real money is quite a different story for psychologic reasons. To gather real experience you have to trade with real money, starting with small quantities. In advance, you should define the risk that you are willing to take (hint: not more than 2-3% of your equity should be at stake at one time), and you should develop criteria for opening and exiting a trade. Then start trading, and stick to your criteria. After some time, do a review and refine your trading style gradually. That´s it (but it´s difficult enough...)

Happy trading - Stony

Isnt that exactly what Pharaoh was saying Stony? Both posts offer good advice. I would take it.

Pharaoh · (#10 (**permalink**))

Quote:

Originally Posted by ernest8fingers

Isnt that exactly what Pharaoh was saying Stony? Both posts offer good advice. I would take it.

Of course, I'm forced to agree with myself, except for when I don't.

Some people will want to jump straight into live trading - if you are one of those, please trade nanolots. It's still live, but it takes a lot more effort to blow a $1000 account 1 cent at a time than $1 at a time.

Personally, I'd recemmend keeping a demo account or two handy even if you are fully comfortable live trading. There's always some new tweak to your trading system that you'll want to test out, and you should verify that it at least has the potential to be profitable before risking any real cash on it.