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Beginners - Kill your emotions

mlawson71
Aug 04 2016 at 10:10
1487 posts
xgavinc posted:
herodontcry posted:
killing emotion?? impossible to do that as long as we breath 😁


Been trading for about 6 years, first 3 lost thousands and now making it all back slowly. My emotions are pretty much dead at this point regarding trading 😁


At least you're making it all back. Some people can't achieve that, unfortunately.

xgavinc
Aug 04 2016 at 11:13
235 posts
mlawson71 posted:
xgavinc posted:
herodontcry posted:
killing emotion?? impossible to do that as long as we breath 😁


Been trading for about 6 years, first 3 lost thousands and now making it all back slowly. My emotions are pretty much dead at this point regarding trading 😁


At least you're making it all back. Some people can't achieve that, unfortunately.


Greedy people will never make it back. I noticed people with patience and persistence inevitably succeed. I think you eventually reach a stage in your trading where you realize the marathon is more successful than the sprint. I can go over 3 days of not opening or closing a trade (and profit - ie. balance remains the same), and it doesn't phase me... the market is just flat, but doesn't remain flat forever. Three years ago a flat balance over 3 days had me anxious and chasing trades and profits to catch up causing me to over leverage... never a good idea.

As one trader put it, 'like monitoring vitals of a patient... the patient (account) may be unresponsive, but just monitoring the vitals (equity and margin) and keeping it in good levels will ensure it remains alive and over time will become stronger and healthier. This requires patience as results inevitably are slow or nonexistent for extended periods.'

I thought that was an excellent example of the psychology one should have.

For every loss there should be at least an equal and opposite profit.
coding101 (coding101)
Aug 05 2016 at 03:58
10 posts
If you are just starting here are a few pointers:

1. Stick to the trend. Look for opportunities in the direction of the trend.
2. Stop over trading!!!
3. Don't get excited about systems here or in any other website showing 1000% returns in a month. They have huge drawdowns and even worse, they live in places that offer leverages that will drive your account balance to zero in no time.

Losing is the only way to learn.
Splitpinz
Aug 07 2016 at 06:22
2 posts
Great advice. It is something that has to be learned over time. Hopefully without losing too much while learning it.

mlawson71
Aug 07 2016 at 09:49
1487 posts
What do people actually mean by 'overtrading'?

prakash104 (prakash104)
Aug 08 2016 at 05:23
21 posts
Over trading means placing too many number of trades. It leads to deviate you from your strategy.If you watch and trade sitting in front of your system all the time, then you will be overtrading.Perosnally I am trading only 2 to 4 times in a month and I am successfully making money.That's trading and not overtrading.

"Slow and steady wins the race"
coding101 (coding101)
Aug 08 2016 at 05:29
10 posts
You start getting into trades just because you think you can make money, you should get into a trade when the opportunity is there else stay out.


mlawson71 posted:
What do people actually mean by 'overtrading'?

Losing is the only way to learn.
xgavinc
Aug 08 2016 at 09:06
235 posts
mlawson71 posted:
What do people actually mean by 'overtrading'?


As stated above, it's:

A: Placing too many orders (though generally if there is a good reason, it's ok if managed well.)
B: Placing orders where the lot size is too large (this is the number one killer of an account.)

Both can be alleviated by keeping your margin level above a threshold. The higher your leverage, the higher your threshold should be, generally the consensus is that an above 1000% margin level should be adequate up to 1:1000 leverage, I somewhat disagree and think above 1000% up to 1:100 leverage, and 1000% for every additional 100 (eg. 1:200 - 2000%) will provide a good buffer for any major movement. The correct way to increase your margin level is to deposit additional funds and take losses off the table, a beginner mistake is to attempt a correction by opening additional orders (covering losses), thereby 'overtrading'.

Covering losses - opening additional orders in the hope that the profit from them will cancel out or exceed the orders running at a loss.

For every loss there should be at least an equal and opposite profit.
mlawson71
Aug 08 2016 at 13:47
1487 posts
xgavinc posted:
mlawson71 posted:
What do people actually mean by 'overtrading'?


As stated above, it's:

A: Placing too many orders (though generally if there is a good reason, it's ok if managed well.)
B: Placing orders where the lot size is too large (this is the number one killer of an account.)

Both can be alleviated by keeping your margin level above a threshold. The higher your leverage, the higher your threshold should be, generally the consensus is that an above 1000% margin level should be adequate up to 1:1000 leverage, I somewhat disagree and think above 1000% up to 1:100 leverage, and 1000% for every additional 100 (eg. 1:200 - 2000%) will provide a good buffer for any major movement. The correct way to increase your margin level is to deposit additional funds and take losses off the table, a beginner mistake is to attempt a correction by opening additional orders (covering losses), thereby 'overtrading'.

Covering losses - opening additional orders in the hope that the profit from them will cancel out or exceed the orders running at a loss.


Thank you for the explanation!

Pumentio (Pumentio)
Oct 25 2016 at 07:16
12 posts
There were multiple cases when during analyzing charts and expecting news to be released, currency movement was contrary different. Nobody among traders can be sure about where will the next bar go. Real market makers (political level) just look at where majority of traders stands and launch movement against their positions. It is just my own observation.

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