FAQ Do I Have to Accept some Big Losses in the Beginning?

[neil]

Wot !

I myself will not reduce the condition losing my money if I have it. This is because I am aware that in forex trading profit and loss are reality. I am also aware that seems I am closed to big profit

Wot are you 'kin smokin' bruv?

 

[victoriajensen]

Losses happen to all traders, including the occasional big loss. That said, I think it's very important to remain calm even when it happens, because a panicked reaction might lead to an even bigger loss.

 

[hjg]

Before your trade stabilises, it would be okay to make some losses. As the trade grows,economies of large scale help eliminate or at least reduce the losses

 

[lawrence-lugar]

"Do I Have to Accept some Big Losses in the Beginning?"

Generally, Yes. -- it's like learning to ride a bike as a kid...you can kind of ...more or less...expect some scrapes or falls to happen. :-0

But you mentioned keyword 'Big'...you won't take a big loss...if you don't take a big position...

May the Farce be With You...

 

[Svetlana Korj]

Of course, you have to be prepared for the fact that the first trade will fail. It's like learning to walk, be sure to fall a couple of times. The question is whether you have enough strength and desire to go through a losing streak, draw conclusions and move on to your profit.

 

[ScalpingRus]

Accepting losses (big or small) all depends on your belief system. Many people take pride in "ending up" being right, instead of cutting the loss early (Assuming you have the ability of doing so), instead of hoping that the price comes back your way.
You'll notice that many trades give themselves "lee way" to "ending up" being right by risking a small amount of their account (risking in the sense of the about of margin they are using) because they are prepared to give more pips to the market then what they are looking forward to making.
I think if from the start you focus on accurate entries and aiming for small lot sizes you will then have less losses. Once you master the lower tf, then you can start to move up to the bigger tf so you can make more pips per trade. In other words accuracy is the name of the game IMHO.

 

[LOK101]

One point/question I have regarding losses (as a newbie) is the issue with having a small account is that you have to employ very tight stop losses in order to adhere to the 'risk only 1-2% of your account' rule. So say you have £200 in your account (yes I said very small), we are taking £4 (2%) on a losing trade. Which really isn't a lot, so it's difficult when spread betting to take into account the cost of the spread and then the potential loss too. This is what I struggled with, that and my discipline! I moved stops and got screwed by it, but yes I have learned a lesson. It's very easy to say what you should do, but in practice this is much more challenging as I am finding out! My issue was the annoying problem of winning trades lingering on a seemingly petty amount, and losing trades would grow quickly. Mostly they pulled back to then become a small profit again, but it's damn stressful watching it hit negative figures (even though it's only a small amount). It's a tricky process to master. I have learned thus far is that with a small account it's not really possible to 'let your profits run' as the market breathes to such an extent that you risk losing way more whilst allowing to trade to gradually creep up, as you have the peaks and troughs. My new strategy will be simply to take the profits that are on offer and adhere to the tight stop losses and just take the beating on a losing trade in the knowledge that it has saved me a larger loss overall.

 

[arigoldman]

In my opinion, big losses or small losses... they all have to be accepted as they help you grow. Success is a lousy teacher.

 

[Jingles]

the problem with big losses is that it can take years to heal them. decades to heal them.

and even then they are not healed they are still there ready to bite you back.

Big losses are a killer to the feelings and psychology of the trader.

I talked to one guy who declared legal bankruptcy from trading losses 4 times. He insisted he knew how to trade. he would just make a mistake and get killed every so often.

 

[Mat_Corp]

"Do you have to accept big losses - no" but probably yes, because it's mandatory part of training, and every big trader goes thru them.

Good Luck

 

[joshua77]

I hope big losses are relative to a demo account =)

 

[Obi-Wan]

I post back in a years time to let you know my thoughts - initial thoughts are no... not BIG losses...

 

[arigoldman]

You don't but, they will teach you good if they happened.

 

[NVP]

You have to write off a lot of time and possibly money to get to a decent level of trading success......demo is easy after a while and you do have to get to grips,with the reality of brokers and the day in day out of live trading

Just like anything else in life ......you have to pay your dues

N

 

[dbphoenix]

The "dues", however, need not be money.

 

[Jingles]

Yes I believe that big losses are part of the game. without them there is no growth.

 

[dbphoenix]

Beliefs that will lead to growth are as follows:

1. Anything can happen.

2. You don’t need to know what is going to happen next in order to make money.

3. There is a random distribution between wins and losses for any given set of variables that define an edge.

4. An edge is nothing more than an indication of a higher probability of one thing happening over another.

5. Every moment in the market is unique.

Big losses are not part of it unless one has no consistently-profitable, thoroughly-tested trading plan. If one has no such plan, big losses are virtually guaranteed.

So it all comes down to how much respect one has for money.

 

[tvtaddy]

It may or may not be in the all cases. But you can start with a smaller amount in order to minimize losses.

 

[arigoldman]

It may or may not be in the all cases. But you can start with a smaller amount in order to minimize losses.

Yes, a small account means small losses. So go!

 

[Vilas]

Big Losses are not "born" ! They grow under your eye and care - unless you have retired to the Beer Counter after placing your Trade. So, if you see your loss growing bigger, stop thinking of yourself as the Infallible Phenomena, and go over the reasons why you placed your trade in the first place. If you discover that you had overlooked some critical factor that is affecting your trade, Well, do what you should and Cut the trade while the loss is still manageable. Holding on to the Trade is generally the result of inflated Ego," I am not wrong" because in this battle with the Market there is only one Winner, The Market. So, if you are in synch with it, you win ! If not, you lose ! Not very difficult to know if you get yourself rid of your Ego!