I am one of those 99%

[montmorencyt2w]

I'm quite relaxed over the RBS purchase tbh, bought £100K of bank shares - Barc, RBS and Lloyds in first quarter 2009, it's for a trust fund, I've trebled its value in the past 7 years anyhow...

With the amount of charges I've paid Lloyds over the years, I've probably helped you grow rich you b*****....

 

[angrybob]

First post but just had to say, I love the way this thread is sponsored by a Cfd provider..

I am reasonably new to trading (6 mo) and use cfds mainly as it offers more options. But you can quickly get into a mess.

I have made some nice profits, but I often lose them when I let emotions take over and don't follow my own rules. Often I look back at the trade and think WTF was I thinking.

Must always remember to put the stop on at the start of the trade...

 

[montmorencyt2w]

Must always remember to put the stop on at the start of the trade...

As "Oscar" is fond of saying, "the stops are in, the emotions are out".

If you've not seen his videos, google for him; he's a laugh.

 

[wibble1234]

These are my favourite kind of posts. When I read about how insane other people out there are I'm thankful that I'm more level headed.

I'll never understand why people who don't know what they are doing load up their accounts with so much starting capital. What's wrong with just putting a few hundred pounds in there and seeing how that goes? Some people are too impatient and want to be like Gordon Gekko from day one.

fabfabio - did you have a trading plan or was this just reckless gambling?

 

[fabfabio]

I understand CFDs are leveraged products and carry a high risk but so does FOREX trading which is also leveraged and carry a high risk. But I dont understand why very few people obeject to Forex trading than CFDs.

 

[robster970]

People only have a passing interest in what instrument you lost your money on because lot's of people here know that different markets behave in different ways.

It's like asking what car you were driving after telling people you had a car crash, it fulfills a curiosity but it's not the main event.

You were gambling BTW, not trading. Don't kid yourself that it was anything else.

 

[fabfabio]

I agree with you its gambling but I think trading shares itself is kind of gambling. CFDs are like shares they go up and down (though as leverage product you can lose or win more than your initial investment) and either you trade share or CFDs you can lose or win money, though CFDs carry a high risk.

The one advantage of CFDs is going long as well as short. I dont believe I lost money because of CFDs, I beleieve I lost money because of no knowledge, expereince, lack of strategy, chasing losses, emotional trauma and bad luck though I should highlight reason CHASING LOSSES

 

[angrybob]

I tend to use CFDs for the long short aspect but only buy as much as if I was laying out the capital...IE if I was only going to buy 2k of shares I would probably only put down 200 margin.

I like them because it leaves some spare cash on tap for small opportunities.

Holding out on losses can cost a lot. If you hold out, may lose 700 quid, where if you had a stop at 50-100 quid, you could have made 7 losing trades in a row instead (likely?).

Probably also worth trading mini contracts first.

 

[Jaydee]

But I dont understand why very few people obeject to Forex trading than CFDs.

Good point, any leveraged product is hazardous if you don't fully understand the risk involved.

People over leverage because they really don't see the consequence involved by doing it. For example, if someone would normally buy £50,000 of a single stock; rather than using a CFD account to buy the same amount with only £5,000, they will purchase £500,000 instead! If you make a 10% loss on this investment, your £50,000 has gone and you are in debt to the broker for any further losses.

 

[robster970]

Most of us know what CFD's are so you don't have to explain them to us.

Gambling serves a utilitarian function - one where the benefit is something other than making a profit.

Trading for profit is what it is, trading for profit.

It doesn't matter whether you use CFD's, equities, currency pairs, futures, bonds, edam cheese as your chosen market/instrument, you need to figure out whether you're a gambler or a fledgling trader. Right now you're a gambler.

Trading is not gambling in itself. Trading can be used as a vehicle to gamble or make a profit. You decide which camp you're in.

 

[Jock Strap]

I agree with you its gambling but I think trading shares itself is kind of gambling. CFDs are like shares they go up and down (though as leverage product you can lose or win more than your initial investment) and either you trade share or CFDs you can lose or win money, though CFDs carry a high risk.

The one advantage of CFDs is going long as well as short. I dont believe I lost money because of CFDs, I beleieve I lost money because of no knowledge, expereince, lack of strategy, chasing losses, emotional trauma and bad luck though I should highlight reason CHASING LOSSES

Trading anything without knowledge is gambling, but if you weren't trading with leverage there is no way you could have lost the amount you did unless you bought shares in companies that all went bankrupt.

Just because you have leverage, you don't have to use it. I spread bet purely in order to go short but I always trade an amount equivalent to the value of the equivalent shares.

You say that your initial intention was to trade for a living. To make a living from trading, smaller consistent profits are arguably better than going for the big one-off leveraged gain which can blow an account, plus the risk is far lower.

 

[fabfabio]

Thanks Robster for explaning the difference. But I still believe trading, buy to let speculation (worst than CFDs) etc etc is to some extent kind of gambling.
And please stop this US or WE term, I am not here trying to teach expereinced members, looking for sympathy or justifying my actions. I have already suffered losses and am not posting here to become butt of jokes and seem pathetic.
As mentioned in my first post I am here to warn potential newbies and I posted details as EliteJet requested to explain my situation so newbies learn from my losses and dont repeat those things.
Though I have suffered but I would not like other to suffer and would never laugh at other people suffering.

 

[robster970]

Thanks Robster for explaning the difference. But I still believe trading, buy to let speculation (worst than CFDs) etc etc is to some extent kind of gambling.

Trading, if uninformed is often futile and in that regard is gambling. You're right.

There is no better or worse, just the amount of damage you can do to yourself in the process. Leverage can help speed up that damage.

I sincerely hope you learn from this episode. Good luck.

 

[spreader_legger]

I have just looked at the Vegas system, but haven't back tested it yet. You say its a pile of ****e?

Wasp was a saint compared to forex factory's Vegas's signals service and mentoring.


http://www.simple-stock-trading.com/moneymanagement.html

 

[temporarilylight]

I'll never understand why people who don't know what they are doing load up their accounts with so much starting capital. What's wrong with just putting a few hundred pounds in there and seeing how that goes? Some people are too impatient and want to be like Gordon Gekko from day one.

Maybe its just because they have too much money to begin with! My brother began trading as a total beginner playing with £80 per point on the dow in quite volatile times a few years ago! He made quite alot of money and gave about half of it back. He just wasn't interested in trading small size. He said 'if i trade tiny, after a good day, the account size basically looks the same' lol. More money than sense.

 

[BESTPAMM]

Many professional, successful traders have passed these things - like ''first biggest'' DDown.

What you expected??.. That it is so easy??!.. In my opinion: to become really successful trader you will have to pass much more bigger loses and min. 3-5 years of practice.
Another thing, if half of your assets you'd give to professional traders to Manage... just to diversify somehow

P.S. Personally mine first experience in CFD was about -35k $.

Regards

 

[trader_dante]

you may feel I am stupid a**********hole but I was trading in CFDs without any knowledge of the markets or trade
Let me break down my losses, I can give micro detail of each day if someone wants

I started trading with Natwest index trader with £13,600 and though I made good money but lost more to their commissions.
Thus I transfered rest of money £13,086 to CMC markets, where on day one I made it to £14,000.
On day two I incurred losses and was reduced to around £3000, I added another £4000 and more trading reduced to to juston £516 (Five hunderede and sixteen pound)
I did not lose my hope and decided to study and continue trading but this time cautiously and as I am on holidays from my job I was able to give 100% time to it

Following morning I made this £516 to £597
next day £597 to £711
Next day £711 to 803
next day £803 to 991
next day morning £991 to £1317 and in the afternoon this £1317 was reduced to £783
next day I made £783 to £927
next day ££927 was reduced to £535
untill this morning it was lost as well

Most of us have been there and done it too...

What is immediately obvious is that you are taking too much risk. Anyone should be able to see this the second you said you went from £14,000 to £3,000 in one day. This is completely unacceptable. If you want to have any kind of longevity in this business you shouldn't have taken a bigger hit than £700 on that kind of money and even that isn't wise when you have no idea what you are doing. You are most likely doing this either because you like the excitement or because you are trying to make sizable money too quickly. Either way you're going to get burnt. The market is a serious place and unfortunately it doesn't give a damn who you are or how much you want this to work. Your dreams and ambitions in the market even your financial responsibilities mean sh*t to the market. If you don't know what you are doing it will chew you up and spit you out. And when you are lying there in the fetal position it will come along and stamp on your head.

 

[barryb]

And when you are lying there in the fetal position it will come along and stamp on your head.

 

[Hoggums]

On the positive side, losing a substantial part of your account teaches you a valuable lesson. There's no better way to learn the value of risk management. Whether it cures your impatience to make big bucks is up to you.

At least you've admitted it was your fault - seen countless rants at SBs here saying it was all their fault - they didn't tell me the account had gone negative etc.etc.

Sadly this is an all too familiar story we've seen here lots of times, and no doubt will be repeated again and again.

 

[mrsoul]

Its my first post and obviously not a good one
SInce 21st December 2009 11h35am till today 12th Janauary 2010 8h13am, I have lost exactly £17,086.

I am not here to discuss my story but to warn potnetial traders that trading without knowledge is like Russian Roulette, please dont invest more than what you are reasy to lose.

You have to trade the SMALLEST size possible for a few months to see if you are profitable.

If, and only if, you are profitable at the end of this trial period, then increase your size.

Way too many traders have early initial success and then increase their size only to find out that their method did not stand the test of time.