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

[radex78]

Practice using demo account will good for newbie I think, many trader can't maintain account more than six month maybe, and beginner practice in demo account will better also at least six month learning, if they can profitable on tehse period of time might they can start in real account, but most newbie they rush to making real money usually

 

[zaysev36]

I tell every newbie trader that until they are making very very good returns from demo trading to forget live trading.......doing ok is not an option

Demos are easy......so you really need to be impressive before,you make the leap ...trust me

M

Well, the problem is when you use a demo account and your trades are generally ok, you start to feel like "Hey, I'm losing money by not doing real trading. Since in demo I won, imagine my profit if it was live!"

 

[radex78]

Well, the problem is when you use a demo account and your trades are generally ok, you start to feel like "Hey, I'm losing money by not doing real trading. Since in demo I won, imagine my profit if it was live!"

Maybe, it's only like as empty imagination, in demo account if trader have any purposes to backtesting strategy, hence trader might will seriously, but if only demo account for fun, might will can't give anything

 

[zaysev36]

Maybe, it's only like as empty imagination, in demo account if trader have any purposes to backtesting strategy, hence trader might will seriously, but if only demo account for fun, might will can't give anything

Yeah, you have a point, even the most prodigious and useful tools can't help if you use them in a wrong way or for wrong reasons.

 

[zaysev36]

Depend on your work, you may face to losses. If you have good experience and market is under your luck then you will not get losses on first day.

Yeah, but since the initial question of this thread was taking in the beginning of trading career, do you think it's possible to avoid such even if the market's on your side?

 

[jojo9361]

You don't have to have large losses, this apspect depends on you, and your trading style. Some people gamble and some people trade. If you gamble you will have many losses, if you trade with a correct set of trading rules you should be okay. Also if you trade those rules on a simulated account to test them, then again that will get chance to see how they perform. There are so many elements to take into account before you actually start trading, if you just jump in on a lve account you will probably have to accept losses.

Thanks,

 

[zaysev36]

You don't have to have large losses, this apspect depends on you, and your trading style. Some people gamble and some people trade. If you gamble you will have many losses, if you trade with a correct set of trading rules you should be okay. Also if you trade those rules on a simulated account to test them, then again that will get chance to see how they perform. There are so many elements to take into account before you actually start trading, if you just jump in on a lve account you will probably have to accept losses.

Thanks,

Good point. You will most likely lose all money you throw away gambling on stock market, or if you go all-in without experience. So basically your losses are as huge as you allow them to get.

 

[zaysev36]

Forex is a big currency trading online business market place. I think forex trading is impossible without facing loss. Even expert trader also face loss on forex market. So I accept it because it is a vital part of forex trading.

Would you accept even those losses that are overwhelming for your account?

 

[dbphoenix]

Or one could trade something else . . .

 

[zaysev36]

Or one could trade something else . . .

Perhaps that's not the option for most PRO-traders

 

[dbphoenix]

Perhaps that's not the option for most PRO-traders

"Pro" traders don't cling to inappropriate instruments.

 

[zaysev36]

"Pro" traders don't cling to inappropriate instruments.

That's also true. But usually you can't be sure if the instrument became inappropriate until it actually fails.

 

[dbphoenix]

That's also true. But usually you can't be sure if the instrument became inappropriate until it actually fails.

Whether it falls or not is outside the control of the trader. Whether or not he participates in the fall is entirely within his control. The answer to the question posed by the thread title is therefore "no". But then few beginners characterize the markets they investigate, much less trade, so they have no idea what to expect.

 

[zaysev36]

Whether it falls or not is outside the control of the trader. Whether or not he participates in the fall is entirely within his control. The answer to the question posed by the thread title is therefore "no". But then few beginners characterize the markets they investigate, much less trade, so they have no idea what to expect.

So basically the answer is "No, but you will".

 

[dbphoenix]

So basically the answer is "No, but you will".

If the trader doesn't bother to characterize his market, much less develop a trading plan, then, yes, he will. But the only reason he "has to accept" the losses is his laziness.

 

[zaysev36]

If the trader doesn't bother to characterize his market, much less develop a trading plan, then, yes, he will. But the only reason he "has to accept" the losses is his laziness.

Well that I absolutely can't argue with. By the end of day, everything that happens to us happens as the result of decisions we make. No one to blame except yourself.

 

[HKT]

SHORT ANSWER

Losses yes. Big losses - no you don’t
This assumes you’re trading a live account, funded with your own money or, possibly, your broker’s money. Some spread betting companies in the U.K. have introductory offers whereby they will fund your account to the tune of £100 or so.

Paper trade for free
The even better news is that you don’t have to accept any losses at all if you start by paper trading on a simulated trading platform. (Most brokers offer this facility.) As a rule of thumb, if you can’t make a paper profit, then you’ve got less than no chance of making a real profit trading a live account. Only switch to trading live when you’re able to make a consistent paper profit and you’re comfortable with both your trading platform and your trading methodology.

Beware of paper profits
There is a flip side to all this good news though which explains - in part at least - why some traders experience heavy losses early on. While paper trading, few of us can resist the temptation to fantasize that we’ve got the pockets of George Soros along with his Midas touch. The result is that we might make 500% profit or more in a single day. This is entirely doable when paper trading. The mistake would be to think you can repeat such a feat trading live with real money. You might do it once. You might even do several times after that. But sooner or later – your luck WILL run out – and you’ll blow your entire account. The moral of the tale is to only paper trade with the same position size (i.e. same number of shares or contracts) using the same stops as you would do if you were trading a live account, funded with your own hard earned cash.

If you made a loss initially, then of course you need to accept that loss if you want to keep trading. And any loss is a good lesson.

My first ever property purchase was a loss for a while before it became a gain. I would encourage any investor, at least initially to go for solid, secure, transparent companies. Learn slowly. The time for purchasing more volatile comes much later, and should also be with a certain amount of risk allocation, and then done if you really know why you are actually buying.

 

[zaysev36]

Not too much of an insightful advice here Do traders really forget such basic stuff so fast they have to be reminded about it this often?

 

[superman1988]

I win lots money but then lost... should i stop ?

I started to make bets a while time ago. Then i lost lots... and found a site match-fixing.club . I won 5 times with them pretty good money but one day i lost... They back me money as promiss! I dont know should i stay with them and play more... Sure they are good and i won more 3000 dolars for 2 weeks... but then i lost 500 )) sure i m in plus but .. what do you think>?

 

[zaysev36]

Aaaaand you're gone