How can I lose?

[Black Swan]

I was drawn to this thread due to the title

as I often use the phrase; "I can't lose, it's only about how much I can win".

 

[Black Swan]

Mr Soul makes a really good point.

There is a big pyschological difference between demo trading and live trading as fear can often impair your judgement. And of course as people have said already money management is crucial.

I only trade Forex at the moment so dont feel qualified to comment on the trades you are making, but I would say that 5 pips seems too close (as you have recognised already I think) as normal market noise could take that out is a blink of an eye.Best of luck anyway

Graeme

Consider this;

cost of spread 2-3 pips, cost of stop 3 pips, 'margin of error' (when pulling trigger) 2-3 pips....there's ten pips cost as you take out the trade, unless it moves in your direction in a heart beat after you're filled.

 

[disi]

Mr Soul makes a really good point.

There is a big pyschological difference between demo trading and live trading as fear can often impair your judgement. And of course as people have said already money management is crucial.

I only trade Forex at the moment so dont feel qualified to comment on the trades you are making, but I would say that 5 pips seems too close (as you have recognised already I think) as normal market noise could take that out is a blink of an eye.

Best of luck anyway

Graeme

I don't agree. what works on DEMO will work on LIVE. Until you can not earn money on DEMo - don't enter LIVE.

Yes- there is a fear when you switch from DEMo to LIVE..fear of losing, probably the biggest here. But as far as trading style or strategy is concerned it's the same. I have gone thorough it - my friends did it also.

If you fear of lose than start trading on LIVE with the smallest possible positions. This makes things easier and trader gets used to "LIVE" trading with "Real" money. Don't believe that if you do not earn on DEMo(for at least 6 months) that you will "somehow" earn on LIVE. DEMO is crucial as long as you are aware of the factors that will start playing role when you are on LIVE account(like fear)

 

[samnakthong]

I've taken all that in. I realise that my actions were recless and have modified my approach.
I actually went back and calculated my trades as is I had nurse maided them and acyually discover this to be a better approach. Thank you all, this is extremely helpfull and I am very grateful.

 

[advfn2828]

I don't agree. what works on DEMO will work on LIVE. Until you can not earn money on DEMo - don't enter LIVE.

Yes- there is a fear when you switch from DEMo to LIVE..fear of losing, probably the biggest here. But as far as trading style or strategy is concerned it's the same. I have gone thorough it - my friends did it also.

If you fear of lose than start trading on LIVE with the smallest possible positions. This makes things easier and trader gets used to "LIVE" trading with "Real" money. Don't believe that if you do not earn on DEMo(for at least 6 months) that you will "somehow" earn on LIVE. DEMO is crucial as long as you are aware of the factors that will start playing role when you are on LIVE account(like fear)

Hi Disi

Perhaps I should clarify - I was not suggesting for one moment that there is no benefit in demo trading, I myself have demo traded for nigh on 6 months before going live again just recently so I am totally with you that demo trading is essential.

I was only making the psychological point of fear potentially impairing live trading so thank for raising that.

Regards

Graeme

 

[disi]

Hi Disi

Perhaps I should clarify - I was not suggesting for one moment that there is no benefit in demo trading, I myself have demo traded for nigh on 6 months before going live again just recently so I am totally with you that demo trading is essential.

I was only making the psychological point of fear potentially impairing live trading so thank for raising that.

Regards

Graeme

Yeah, I agree with you. When you switch from DEMO to LIVE there is always this psychological factor that makes you go "Oh No". This can be solved if you have enough money on account and trade smallest amount of positions, so you can risk not more than 1/100 of your account size..that is what I learn younger traders. This allows you to get "OK" with risking own money. Later that amount can be bigger when one feels secure with making "real" orders on market.

 

[Chorlton]

I'm just about to start trading and I would like to know what are the classic mistakes new traders make?
.

Do you know what expectancy is and if so, does your own methodology have a positive one?

Do you know how to apply proper risk & Money management?


If you can answer Yes to these questions, you're ahead of most new traders.........

 

[samnakthong]

yes, I hope so. I,ve descided that 5% of the pot is a big enough risk for any DAY not trade.
My expectancy is no more than 200 profit a day, which is what I have been making. Made nothing today, have no market indicators as of yet.

 

[Chorlton]

yes, I hope so. I,ve descided that 5% of the pot is a big enough risk for any DAY not trade.
My expectancy is no more than 200 profit a day, which is what I have been making. Made nothing today, have no market indicators as of yet.

As long as you have thought about the risk side of trading then this will serve you well as IMO it is one of the most important parts which are frequently overlooked by some.

As a side note:

- Ignoring your Risk per Day of 5%, what is your risk per trade?

- "Expectancy" in this case is not how much you would like to make in a day. It is the average amount you can expect to win (or lose) per dollar at risk and it can be useful for comparing different strategies, as well as using it to monitor your own progress.

Expectancy = (Probability of Win * Avg Win) - (Probability of Loss * Avg Loss)

 

[samnakthong]

About 2% per trade. Only 2 trades a day, with an additional 1% left to join in with the profit takers at the end of business

 

[JadaO]

Far too many to mention here! Suggest you read through the forums beginning with the first half dozen listed after clicking "First Steps" on the home page. Then trade a virtual account on a demo platform until you start to earn money consistently (hint- this stage may take a few years or never happen).
Depends on the instrument you wish to trade. You will have to be more specific.

Could someone tell me where to get a demo platform & if this platfrom mirrors the actual stock market?

Cheers

 

[peto]

Could someone tell me where to get a demo platform & if this platfrom mirrors the actual stock market?

Cheers

Good question. Looking through the Spreadbetting companies, most of them will only provide one for 2 or 3 weeks. If anyone can do better than this please post here.

For research I use a live account with a direct market access broker (IB) http://www.interactivebrokers.com/en/p.php?f=tws&ib_entity=uk and use their data feed through some 3rd party software (ButtonTrader) which allows me to trade a sim account (although IB's own 'PaperTrader would be a free option...but see the next sentance). Unfortunately the IB account is going to need $10,000 to open, plus a small monthly data and 'inactivity' fee.

A cheaper alternative might be to subscribe to a data feed like IQ feed Welcome to IQFeed! - Fast, Reliable, Affordable. Datafeeds and API. and then run NinjaTrader simulator(believed free indefinitely in sim mode?) to trade with, perhaps with the free QuoteTracker for charts as well.

Anyone got a better suggestion...particularly regarding fx brokers where the data should be less or free?

 

[jeffsmith]

I'm just about to start trading and I would like to know what are the classic mistakes new traders make?
Also, what is the best way to get an idea of opening prices, I read a few ways but what,s the favourite.

Hello
every newbies in forex market are making mistkes ,and most of mistakes are same for newbies.every new trader using mush margin f the biggest advantages of forex trading is the ability to use leverage or trading on margin. One of the most common mistakes that new forex traders make is using too much leverage. Using too much leverage is when you have a small account balance, but make a big trade. If the market moves against your position by just a small amount, it can result in large losses. Commonly, the beginning forex trader will get emotional and nervous and close the trade for a sizable loss.
The No of Trades initiated by new trader are a lot.Over Trading occurs when traders try to look for trading opportunities that are not really there. It happens to new traders very often, because they just want to trade. The result is usually a poorly executed trade that results in an eventual loss. Over trading can also result in traders making too many trades at once and using too much margin.
Many New traders are picking Tops and Bottoms.Many new traders attempt to try to pinpoint where a currency pair will turn around and start moving the opposite direction. This is something that is difficult even for professional traders.

And the best best to get an idea of opening prices is that use technical analysis.there are many websites which can provide you many data for technical analysis. Use those sites and read all technical analysis and technical trading Strategies.

Ok
have a happy trading

 

[samnakthong]

My biggesr mistake so far was actually caused by an over sensitive touch pad on my laptop, which caused me to accidently initiate a trade in the wrong direction. Unfortunately I lost on that trade after choosing not to close it immediately. Fortunately this was offset be a couple of other positions, I suppose that's the nature of the game. As for your comments I would agree with all of them. As an inexperience trader I am going to stay away from indexes that trade over say
about 8000, they're just too risky.

 

[jeffsmith]

My biggesr mistake so far was actually caused by an over sensitive touch pad on my laptop, which caused me to accidently initiate a trade in the wrong direction. Unfortunately I lost on that trade after choosing not to close it immediately. Fortunately this was offset be a couple of other positions, I suppose that's the nature of the game. As for your comments I would agree with all of them. As an inexperience trader I am going to stay away from indexes that trade over say
about 8000, they're just too risky.

hello sam

don't worry about that position. it happens with every new trader, and after spending some time in forex market you will learn these all things, continue trading, there are many interesting things if you really curious to forex trading. just gibe your some time to forex trading and it's technical analysis.you can find many forex trading website and there are many forums for forex community.

ok