Best Thread £10k wipeout

[Dinos]

"though it was easy money at first. made a bit. then I got greedy and didn't use stops"

Hi, sorry to hear about your losses, I've been there twice in my early years of "trading", and lost my first 2 pots, then I realised I had to learn how to trade, that was 13 years ago, and have been trading for a living for the last 8 years.

GREED, will get you in the end, consistancy is key for me, a little and often, I never go for the big one, I enter with a predefined target and take it when its achieved, without hesitation, (trading the plan).

STOP LOSSES: a quote a trader once said to me, strange, but true. "stop losses made me a successful trader", imho, as part of the plan of your trade, you should know where you will take profit and where you will take a hit, and apply rigidly without hesitation, by your own admisssion you let a loss run and look at the result, you need to protect your capital.

Hope you get the opportunity to sort it all out

 

[bikersteve]

what can go wrong!

I've just started trading and have lost in the region of £800. It seemed to be easy money, what could possibly go wrong, the market goes up, the market goes down, all I had to do was to guess the direction, boy was I wrong. I have since taken a step back and looked at what went wrong with the trades I made.
1, not taking profit when available, waiting for more upside/downside and the market moved against me.
2, not having a plan, traded on pure emotion.
3, most importantly, not aquiring enough knowledge of trading before going into the market.

I, like advfntrader was unable to watch my trades continually, so have solved this by buying a mobile broadband package. This way I can keep up to date with my trades.
I now have a plan to trade and I WILL trade my plan.
I will start off with small amounts of money to see if my plan pans out.
Wish me luck, and if anyone has a magic formula let me know.

my sole goal to trade was to make some money. I have a full time job so can't screen watch all day so I guess thats why I failed, not enough effort went into it. should have just stuck the money in a fund instead

I am under 30 yrs old so I guess I'm still fairly young and have many years to learn, I'll put this down to a mistake when learning lifes lessons. you get nothing in life without hard word.

 

[forextrader999]

I started trading maybe 3 months ago... with $10k in the account, got up to $14k so thought put another $10k into it because i kept winning and winning, its almost as though i could read the market easily... soon as the 2nd lot of money cleared i started LOSING LOSING LOSING till the account is now $1000 - just moved to micro account..... lost another $500 ...... now on last $350

i honestly believe its unreal, if anyone would have done the opposite trade to me they would be sitting on a lovely profit !

having said all that.... i believe to have learned alot..... my $350 is growing daily slowly slowly on mini trades where i focus on the candlesticks and RSI ONLY... when i started i was trading really simply then i started reading other peoples opinions especially the 'experts' saying the usdjpy is going to 99.50, the usdcad is going to 0.95, the eurusd to 1.63..... thats when things started going wrong when i look back at it apart from me adding to losing positions..... will never do that again

almost forgot, every single time i put a stop loss on it got taken out then price reversed to a great would have been profit

the market makers know that 95% of traders use 30 pips stop loss i'm sure!

that's my experience / loss / heartache and opportunity

after all if there is NO TEST there can be NO TESTimony!

all the huge banks are losing money head over heels but they keep going (ofcourse with our money its easier for them)

 

[bikersteve]

Like looking in a mirror!

It seems as if I could have written your statement below, as this is exactly what happened to me.
Listened to all the 'In the know' advice about how the markets would run, the stop loss issue, seems uncanny as soon as it hit mine the trend reversed. I thought it was only me this was happening too.
It seems as if the largest driving force behind any market is Fear of Loss
Lost most of mine on crude.
If your willing to share your new found knowlage on candlesticks and RSI I would be obliged.

Regards, Bikersteve

I started trading maybe 3 months ago... with $10k in the account, got up to $14k so thought put another $10k into it because i kept winning and winning, its almost as though i could read the market easily... soon as the 2nd lot of money cleared i started LOSING LOSING LOSING till the account is now $1000 - just moved to micro account..... lost another $500 ...... now on last $350

i honestly believe its unreal, if anyone would have done the opposite trade to me they would be sitting on a lovely profit !

having said all that.... i believe to have learned alot..... my $350 is growing daily slowly slowly on mini trades where i focus on the candlesticks and RSI ONLY... when i started i was trading really simply then i started reading other peoples opinions especially the 'experts' saying the usdjpy is going to 99.50, the usdcad is going to 0.95, the eurusd to 1.63..... thats when things started going wrong when i look back at it apart from me adding to losing positions..... will never do that again

almost forgot, every single time i put a stop loss on it got taken out then price reversed to a great would have been profit

the market makers know that 95% of traders use 30 pips stop loss i'm sure!

that's my experience / loss / heartache and opportunity

after all if there is NO TEST there can be NO TESTimony!

all the huge banks are losing money head over heels but they keep going (ofcourse with our money its easier for them)

 

[0007]

I started trading maybe 3 months ago... with $10k in the account, got up to $14k so thought put another $10k into it because i kept winning and winning, its almost as though i could read the market easily... soon as the 2nd lot of money cleared i started LOSING LOSING LOSING till the account is now $1000 - just moved to micro account..... lost another $500 ...... now on last $350

i honestly believe its unreal, if anyone would have done the opposite trade to me they would be sitting on a lovely profit !

having said all that.... i believe to have learned alot..... my $350 is growing daily slowly slowly on mini trades where i focus on the candlesticks and RSI ONLY... when i started i was trading really simply then i started reading other peoples opinions especially the 'experts' saying the usdjpy is going to 99.50, the usdcad is going to 0.95, the eurusd to 1.63..... thats when things started going wrong when i look back at it apart from me adding to losing positions..... will never do that again

almost forgot, every single time i put a stop loss on it got taken out then price reversed to a great would have been profit

the market makers know that 95% of traders use 30 pips stop loss i'm sure!

that's my experience / loss / heartache and opportunity

after all if there is NO TEST there can be NO TESTimony!

all the huge banks are losing money head over heels but they keep going (ofcourse with our money its easier for them)

almost forgot, every single time i put a stop loss on it got taken out then price reversed to a great would have been profit

Surely you need to look at your stop-loss calcs? On the face of it they would seem to be too close. If your account can't stand them being further out then you are trading the wrong instrument?

 

[bikersteve]

Hi 0007, is there any possibility you would point me in the direction of the correct instrument?

Regards, Bikersteve

 

[0007]

Hi 0007, is there any possibility you would point me in the direction of the correct instrument?

Regards, Bikersteve

That's a really open question that involves so many factors eg your trading style, your risk tolerance, your trading expectancy, your trading system / methodology etc etc. Much more knowledgeable people than me have written reams on it and still people get it wrong.

I would suggest you read some of the basic trading articles on this forum and learn the fundamentals of trend / support / resistance / price action. Get a demo account and try your system there - it's not totally like real trading but if your system fails there it's unlikely to work for real.

I don't trade forex so I can't speak with authority, but I do wonder if it's the right place for a novice to start - it's a 24 hour market so you need to keep an eye on the ball. There are real experts out there who will eat you for breakfast! My suggestion would be to choose a medium volatility set that has good liquidity eg FTSE100 - which closes overnight and gives you some thinking time. But that's only my suggestion, & i'm biased.

If your only problem with forex is your stops, then just work on that and your money management. In this game it's really important to understand the fundamentals (of trading) properly - you're doomed otherwise. Try this spreadsheet if you're having problems with money management.

Lastly, you must develop your own decision making - read as much as you can and listen to others. But always remember: 50% of it will probably be crap - your job is to identify the good parts. That also includes what I'm saying - it works ok for me but you're not me and there are probably plenty of people who will disagree with my approach in favour of their's which works for them.

Good luck, keep reading, don't give up: trading is a very simple concept but very hard to be good at when you are starting out.

 

[flash156]

Hi Ngislainf

Do you realise that you have got a 90% chance of losing your 30k as a first time trader? This is the unfortunate statistic of churn and burn in this game. Rather open up a paper account and learn whilst not losing any funds then when you feel that you are ready put 5K into your real trading account and see what happens........

My story is exactly the same as what has been posted by numerous people. Initially it starts out well and then one increases the amounts involved and then you hit a wall and you refuse to take a loss. Then it goes from bad to worse and your account gets wiped out and then you want to kick yourself for not taking the 1K loss on the first day!!!!!!!!!!! I dont know of anyone who trades (or used to trade), who has not experienced this. It is part of the "school fees". The idea when starting out is not to try to make a lot of money in a short space of time, but to avoid losing all your capital in a short space of time......

 

[nghislainf]

Thanks for your really helpful advice flash156!
I'm reading a lot of interesting stuffs on the internet and I actually gave myself three months to learn all the tricks and tips and to gain experience before actually risking my family's lifetime savings!I may advice all the newbies to try to do the same!!!!
I attended a trading seminar today held by TRADERS UNIVERSITY(i picked the link from this web site)on london-kensington close hotel and I was really disappointed!!!!!

THEY WERE ACTUALLY TRYING TO SELL US THEIR "SERVICE"!!!!!!!

My question is: IF THEY ARE REALLY SO GOOD AT MAKING MONEY, WHY DO THEY NEED OUR MONEY FOR? £3000 FOR 6 MONTHS COATHING? NO THANKS....!!!!

Would you please help me for a step by step way to open a paper account and tell me if E*TRADE UK is a good broker to start with when trading CFDs and spreadbetting?
I would have started with INTERACTIVE BROKERS but I don't think they do spreadbetting and CFDs, not yet anyway...

This forum in awesome and much more helpful than any expert out there because actually, we help each other for mutual interest, and mutual success...

Thank you everyone!!!
Good luck to any newbie out there!!!
G

 

[Wolff99]

Been there!!

Well, have to say, been there myself my friend although not as much. All looks too easy to start with doesn't it. Then you get your fingers burnt. Then you think....ok...there's a little bit more too this than meets the eye.

Step back a bit....then start learning about it all...including risk and money management.

I came accross a good free educational site with 5 minute snippets of information. I think this will give you a better idea of trading etc. It's InformedTrades : Learn Trading. Trading Education. |

Then look at educating yourself further by reading. Books about market theory and market profile are good reading too.

Once bitten twice shy I'm sure but nothing is mastered in a minute. Step back...learn and paper trade for a while, that's what I'm doing anyway.

Cheers

Darren

 

[dfxdfx]

the lessons learned will be useful somewhere else in life. maybe not again in trading. because if you think it sucks now, if you went and did it again .... that would really hurt.

just don't accept that you are "a loser", because the nature of trading is very brutal: you can make 19 correct decisions and make 1 bad one, then the bad one can blow up and its how you handle that blow up. that's the most important skill: when the **** hits the fan and you make a mistake (which everybody does), how do you handle it ?

so I say use the lesson in another way. when you've blown 10k then you aren't going to be so upset when the car gets scuffed up a bit.

I screwed up this week and I'm pissed. I should already have had that lesson down, but I got caught making a dumb move at precisely the turnaround in the day (and I knew it and said it outloud even).

thanks for your words guys. we are not in debt and can save again so financially can recover. I will just have to give up trading and put it down to one of lifes hard lessons. its the lack of trust is the main issue as I took risks with our money, not just mine!

why did I average, I thought theres no way it can keep going up !! but it did. lesson learned.

 

[mlpt]

for newbies trading forex or stocks check out these sites they should be really helpful
Econtrader.com Forex Trading Online Training: Learn Foreign Exchange Currency Trading
and for more stocks guide try stocks.about.com it has comprehensive guide on it.

 

[fimmwolf]

I am genuinely confused reading recent posts here where members talk about £100k banks and not risking more than 1% of it.

That's the wrong way to look at it; you can easily risk 10 to 15% of a bank, and there is nothing wrong with trading with no stop losses if your strategy supports it.

2% is generally considered the optimum amount of your capital to risk in a single trade.

By risking 2% of your capital you will be able to endure 225 consecutive losses and still be left with 1K at the end. (assuming a starting capital of £100k)

That simple principle is the key to staying in the game that tries to set the odds against you.

 

[donone]

2% is generally considered the optimum amount of your capital to risk in a single trade.

By risking 2% of your capital you will be able to endure 225 consecutive losses and still be left with 1K at the end. (assuming a starting capital of £100k)

That simple principle is the key to staying in the game that tries to set the odds against you.

I'm not sure I'd WANT to survive 225 consecutive losers That sounds too much like "Turtle Trading" to me

It's good that you wrote "capital" - many of those who regurgitate these miniscule figures say "1-2% of your trading account" - Why not put 90% of your money in an interest bearing account & bet 20% of your trading account

 

[hwsteele]

I understand the pain all too well.
I lost my first, second, third, and fourth account balances before I realised that I should take a step back and find out what was wrong. I found that I was looking for someone or something to do my thinking for me. By far the hardest part about trading for me was spending the time to learn who I was and how I work. Then from there I had to find the trading style that suites me. Then I had to practice. Then practice some more to break old VERY bad habits.
It's funny but I acutely changed as a person to be able to start trading again. Sad thing is it has taken me four years to get to where I need to be.
But hey, life goes on if you let it!

 

[woodlands]

I admit actually that trading on your own account, particularly if you don't have a decent day job and want to try to draw income from it, is a lot harder than having a salaried job as a trader. Probably one of the hardest thing a person can do, particularly due to the psychology and lack of day by day exposure.

Having read a few random posts I am beginning to feel sorry for a lot of people here. But I am uncertain what most people's motivation is. Financial gain, an 'easier' job, the perception of glamour?

 

[wrobinson]

best advice!

Hi. If it's of any consolation, I've been there as well. What I did about it was to learn WHY all my trades went sour on me. I realised that trading is really 90% psychology and 10% knowledge and skill. The best book I can advise you to read about this is called The Disciplined Trader, by Mark Douglas. It is truly an excellent book, easy to understand, and will explain to a) why you're goin wrong, and b) how to set about correcting it. However, beware: it's NOT as easy as you may imagine. But read that book first, BEFORE you get into any more trouble! Also, by the way, I have a book which I have written myself coming out in just two weeks' time, which I'll gladly tell you about once it's out (not before, I'm sorry, since the title is not covered under the ISBN and copyright rules until it's actually published). It is quite different from Douglas' book. Whilst his is all about the psychology of trading, mine covers the whole subject from beginning to end, including of course a large section on the psychology, with real trade examples to demonstrate who it works.
In the meantime, the very best of luck to you, and don't fall into the trap again without some serious study. If trading was easy, everyone would doing be it and everyone would be a winner; and if everyone was a winner, well you can see where that one is going...! Fact: 90% of traders lose money. Food for thought...
W.

 

[potshot]

Lose your money at trading is nothing in the grand scheme of things its people who are important. You can always get money back, but you can't get people back.

I have never lost a wink of sleep over a trade and if you are at rock bottom having a sleepless night won't help.

I know many have been wiped out over the last couple of months, if you have your family thats all what really matters. As I said you can make money back, but not people.

My brothers wife recently died of cancer and he would gladly give every penny he has to have her back again. You will see losing money is nothing compared to losing a loved one. Puts things into perpective really.

 

[potshot]

Reading the post on here so many have lost their money trying to trade crude and forex. Why don't newbie's learn a market like the ftse 100 and stick to one market for a couple of years before moving onto forex and crude.

Forex and crude trading is not for the inexperienced, they are dangerous markets which will suck all your money in and spite you out. All the markets are like that but some are more gentle than others.

 

[advfntrader]

hi all,

thanks for all your comments. not logged in for a while.

I took 6 months off trading to clear my head and get over the loss, - the money is gone. the wife forgave me luckily.

then I did a few weeks demo trading and recently setup another live account with a small amount. I traded for 5 weeks but eventually was wiped out once again. my account was too small for the trade size and I have realised I was risking upto 10% per trade - too much !

still, I feel I am paying attention to indicators, stops, risk/reward now so I feel to be on my way in the journey to become profitable