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Last few months blow up most Forex accounts

Hendra Lau
hlau
Aug 30 2014 at 13:36
23 posts
Hi fellow traders,

Feel free to follow my PAMM account: https://www.myfxbook.com/members/hlau/delta-capital/1001143
I am using minimal leverage each trade. Trading style is swing trading, not scalping.

Cheers.

tmk471 (tmk471)
Aug 30 2014 at 13:37
13 posts
@steveh2014 there's no data on your page that may suggest how you could improve trading. Many of us believe that forex is easy money and in the hope lose everything. Years ago, I was in the same boat. However, I didn't give up and studied the market thoroughly before starting it from a scratch again. I'm trading (and not copying) based on my own analysis of fundamentals. I don't buy any of the news, technical analysis or other predictions. You would see hundreds of experts predicting currencies trends and directions but it rarely materializes. If it was so easy the big banks, hedge funds and these traders would be earning billions and trillions without much effort just by buying or selling currencies. However, you'll be surprised that only the top few hedge funds dealing in forex reach a 30% earning per annum. The mere fact that more than 95% people lose money in the long run should give you an idea how tough it is to make money in forex.

 I, myself, have previously lost significant sum in the forex and for that reason I advise my fellows here (especially those new to forex) to be extremely careful. I can't teach them forex trading but if they follow one simple advice they could do well - CONTROL YOUR RISK & YOUR GREED. Don't use more than 1:50 leverage (though I actually use much lower); Don't use more than 10% of your account in active trading at any time; Don't allow more than 10% of floating drawdown.

Control your risk, profit will follow you!
Vn
vinabao
Aug 30 2014 at 14:28
104 posts
steveh2014 posted:
@VN:

Concerning your comment:

'Yes .
That is what I am talking about .
I understand Forex is zero sum game .
But my side I am talking about is not zero sum game .I am talking about those professional traders I know with track record for more than 1 year and they trade for living .Most of them lost in last 2 months .'

This is exactly what i am trying to understand...do you really think the strong usd is/was the only reason these good traders lost in last 2 months??

Also why has usd become strong recently?

Like I said , most of traders buy low ,sell high .Ofcourse many traders out there follow the trend or trade break out but no one hold position for 700 pip to be honest .As human normal reaction everybody would take profit for less than 100 pips .
Look at EURUSD % GBPUSD 700 - 800 pips one way without correction .How can you survive in that environment ?
Even you cut loss and reserve the trade but you still can TP early and jump back again , it would not enough to cover the loss .
The slow trend make it much harder to trade too .
USD become stronger because the stock market go up like crazy , people think central bank will raise interest rate soon so attract more people keep dollar .Many investors in the past borrow cheap dollars to invest outside US in past 5 years ,now they think if interest rate raise USD will become more expensive so they are hurry up buy back USD .So it kind of crow to buy USD right now I guess .

Vn
vinabao
Aug 30 2014 at 14:32
104 posts
hlau posted:
Hi fellow traders,

Feel free to follow my PAMM account: https://www.myfxbook.com/members/hlau/delta-capital/1001143
I am using minimal leverage each trade. Trading style is swing trading, not scalping.

Cheers.

Please don't post scam like this when you don't have more than 1 year record to show .
Forex is hard .It is not easy as you think .

Hendra Lau
hlau
Aug 31 2014 at 06:31
23 posts
vinabao posted:
Please don't post scam like this when you don't have more than 1 year record to show .
Forex is hard .It is not easy as you think .


I am not posting scam. You don't need to follow if you are very bitter.
I've been trading for 8 years and just never join myfxbook. I know forex is not easy, i am not a newbie.

ZOOM
Sep 01 2014 at 06:51
39 posts
@steveh2014

It's not a theory. It's the facts. If you open any half-decent news you would see that they are talking about the major central banks and how they (at least some) are planning to get out from the uncharted territory of this unprecedented QE. You have the Fed talking about raising interest rates, the same is happening at the BoE and Carney that, BoE that has moved the GBP massively, just look at the cable and how it moved up above and then fell from the historically important psychological 1.7 level. You obviously have major central banks moving the market, that's far beyond what the regular technical trader factors in. Look at what happened last September when Ben Bernanke started talking about tapering of the Fed QE.

As someone mentioned, you have to learn at least something about the market. You can copy trades, but you should have your own idea, have your own strategy.




Chikot
Sep 02 2014 at 22:51
2299 posts
Every trader can have losing period. it is how he controls his losses and himself during losing period that matters.

steveh2014 posted:
Just to add to my last post I still do not understand why so many in last 2 months have blown their accounts for if they buy low and sell high as VN says then when USD is strong buy USDJPY?

All the traders I follow have good track records and are in the top 10 or 20 of myfxbook - yet almost all of them every day for last month and a half continuing to this day are losing...



takechance (takechance)
Sep 03 2014 at 07:01
271 posts
takechance posted:
I was quite surprised too to see Johnpaul's debacle on a few unguarded EUR/USd trades. He didn't use any SL and let the losses mount. I dont know what went wrong with his discipline.


A Letter from Johnpaul77 - Retrospection

Hi everyone, it's me JP...

As we all know, the past 2 months were the worst months ever for our career as a signal provider and also the biggest losing months after 3 years. It became the worst not because of the result, but it's because we broke our own rules hence affected the result. Here are some rules that we broke :

    Didn't use stop loss
    Hold position(s) for too long
    Believing/loving too much to one theory (in this case – chart pattern)
    Exceed our loss tolerance level
    More than one average position in one pair
    Force ourselves to trade during bad markets
    Put ourselves on hoping instead of counting (read: gambling)

But somehow it's also the most valuable lesson for all of us especially me. So, let me tell you about what really happened in those months.

Yes, this was my fault. I lose my focus on trading and the biggest distraction was because I got too excited on the business side. There are so many business opportunities approaching us and keep coming in. I rarely came to the office and spent most of my time meeting new people for the business purposes.

Until one day when I had a full team meeting, I heard a lot of complaints and issues, most of them were because of the trades.

First, the gold trades, this was when all 'the bad lucks' began... Many subscribers were complaining about the gold trades and having a serious problem with it. I decided not to trade on gold unless it's showing a strong confirmation. It turned out to be straight gold losses.

We scared people away and ourselves as well without realized that gold has contributed a quite big gain of our entire portfolio.

Many of our clients and partners were following us through MQL5 and FXJunction by reading its comments and reviews. Subscriber's argument becomes their argument and their argument becomes our headache.

Now I understand why fund managers don't show their trades or speak directly to their clients, it's simply because of this psychological thing.

We feel like we owe them trades, profit trades. It's like we must prove that we can beat the market no matter what and it has to be 'now'. We forced ourselves to trade and have to be profit trades in order to cover the losses. The more we try, the more we lose, and this is what the theory called the revenge.

The most annoying part is when someone asks me, 'any trades for today John?' or 'how do you see the market today John?' and so on... Wait, that's not the worst, 'I'm paying for your signal so why don't you make any trades', that's the worst!

I mean, don't you people learn about what makes people lose so much money in forex? It's when they try to make money everyday or in every single trade. And what makes them lose deeper? It's when they seek for revenge.

Trading is about waiting for the moment, not seeking for the moment. How about the risk? I think each of us really should take a review on how we manage our risk. But yes, we finally fell into the same hole, broke our own rules, just like everybody else.

In short, we were no longer trade for ourselves without burden as how we used to be, instead, we trade for the sake of clients, subscribers, and partners. We trade for our faces - reputation.

Well, this is what social trading taught us and I guess this is the bad side of social trading for signal providers. I personally prefer Myfxbook or FXJunction system. It's because we only get commissions based on per lot traded. This way, we don't feel like owe any trades to our copiers even just to cover the subscription fee. But it's just my personal opinion.

There will always be some bad months for traders. Every trader has their own method, and every method has its own bad months. Take a closer look at our portfolio, there are months when we didn't trade at all.

Anyway, I'm not blaming social trading or subscribers or anything at all. Again, it's my own fault. I should have known how to handle things like this. I believe it's a part of learning curves that everybody must been through and that's so we remember it. The rest, only time can answer.

One thing for sure, we won't stop, we will keep trading. This is how we make a living and this is what we are good at, because we are traders!

JP

Forex21
Sep 03 2014 at 10:55
416 posts
Some currency pairs showed nice and very stable trends during the last months. So, I would say, trading was not very difficult. At least not for traders who follow the trend.

Regards, Alex

steveh2014
Sep 03 2014 at 12:13
9 posts
Hi Forex21/Alex,


I agree with what you just said and also am disappointed that the myfxbook traders often have done very badly in last 2 months...I was told that the markets recently had changed from ranging to trending - looking at eur-usd and a few others over the last few months this is not true...many as you say have been trending.

I see JP has just posted and I will read it again in detail all I can say right now is to comment on JP's last line in his post:

'One thing for sure, we won't stop, we will keep trading. This is how we make a living and this is what we are good at, because we are traders!'

Well JP I started following in June 2014 - I made a 3% roi with you then a 15% loss then you left myfxbook...so my experience is not in line with your overall abilities which are amazing - 16% on average a month as of June - I think it was that.

Quanthero also made a 10% nosedive....Profundfx also right now biggest DD ever...

My account has had a 40% loss in about 1.5 months after following people who have amazing track records but which all at the same time traded VERY badly...My risk settings were tight also.

There has been something odd going on in the last 2 months (in addition to JP taking his eye off the ball) as people who have had good track records have done very very very badly...

Zoom seems certain he knows why this is so in a recent post on this thread - I note no one has commented on what he said but would be interested to know what others think about what he said.

None of this compensates for the immense disappointment I have with myfxbook right now - I was only looking for a few % roi...seeing as the banks can't give you anything in savings...

All these traders HAD good track records and then MOST traded as if they had never traded before....

I do see many not using SL's which I think is ridiculous - for so called pro traders to not use a SL is beyond foolish...it's such a basic trait of good traders that I am amazed so many people I copy do not use them.

Myfxbook has a professional image yet my experience of the traders results is nothing of the sort.

Note I've only been copying people since late July so maybe I have been unlucky...That is not much comfort right now.

I've not been this disappointed with a company's performance in many many many years....The difference between the prediction and the actual results are mirror images of each other - it's not like i made a little or lost a little - my account has been almost destroyed following myfxbook's so called best traders over the last month.

I had such hope for this copy-trading too. Now gone.


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