I wouldn't go as far as to say you have lost one year with demo trading, however based on my experience with risk control and money management (roughly 10 years) I can say without a doubt that it is better to start with a live account (instead of a demo), though a small one (cent or micro account) would be preferable for capital conservation reasons.
Even a $10 bankroll on a live account is preferable to a $100K demo account. Why? For the simple reason that the mind has a trigger that ... gets triggered when there is a REAL risk perceived. You won't train your emotional control appropriately using a demo account, which is a safe environment. Even a trade where you stand to risk $1 would trigger more emotions than a $10.000 demo trade. And you need that to learn to handle such emotions. More than half of the necessary equation for success in trading is emotional management.
So I'm not surprised this happened. But it's good that now you know how mind and emotions work, or at least this should be evidence enough for you to realize. So I would stick to live trading, use the smallest live account and trade sizes available and learn from the experience.
I see it completely different. Why should one try to control that which was given as a tool to alert us to when we are doing something wrong. I chose to go with robots as they don't seem to have any problems with any kind of emotions. Now my emotions are feeling pretty cool as my robot makes around 2 percent a month and I can go fishing.
I think you also need to seriously look at your risk management - to lose 30% of your equity in a few days is very hard to come back from - trust me, I've done it myself. You are trading lot sizes that I would only consider on a 2-3000$ account. Reduce your leverage and drop your lot sizes so that you are only risking 1-2% if your trade fails, as they sometimes do.
Walk away for a few days. Read back on the basics. Read some articles. Come back, and go micro trades. Play chillout music. Get laid before you trade. So on and so forth. Take the emotions out of it and you will do much better.
reading, learning and practicing on demo accounts are just for basic. you need to practicing with live account . with 0.01 lots. no matter how well a soldier trained, never can compare with experienced soldier.
I think, and this is my personal view based on my own experiences, that your biggest problem is the emotional roller-coaster you go on when trading with your own money. The fear and doubt in yourself causes you to trade with stops that are too tight (fear of loosing money) and take profit levels that are too close (fear of giving profits back). On an account that size, given your level of experience, I would ONLY trade 1 position at a time with a lot size not exceeding 0.03, and carefully plan my entry with technical analysis so I will have a 1:3 Risk/Reward ratio, where 1 is my Stop distance and 3 is my Profit level. This trade must not exceed a risk level where you lose more than 1% of your capital, else you walk away from the trade. If you maintain a 1:3 Risk/Reward profile then you can have three losses in a day, and that 1 win will cancel out all your losses, but if you have 2 wins and 1 loss you will end the day with a good profit. The point of all of this is simply a good trading strategy will give you the confidence to trade with minimal emotions, and that's the hardest thing about trading, and the biggest reason most traders blow up their accounts.
I agree with Lodgert, to recover from a 30% loss in three days will be extremely hard, but is totally possible - you just have to be extremely diligent and disciplined with your Risk/Money management.
Don't be discouraged man, I love trading, been doing it for 4 years now, and I know I will one day win the battle and make my first million - just hope I do it before I kick the bucket.
I am by no means a trading machine or super pro trader, but if you are interested, contact me and we can arrange that I send you a PDF of a trading course I wrote myself for beginners (actually wrote it for myself while learning - but people started asking me to teach them). I will not charge you anything, it is complete free to you - as long as you promise not to start distributing it for profit.
I do give courses, but only 1on1, not on-line unfortunately, but you are welcome to read through the PDF (which is quite lengthy), I think you can pick up a lot of pointers that may help you.
You may ask me why I would do this? Its simple man - I was exactly where you are now, about three years ago, and I ended up loosing two funded accounts before I REALLY started learning trading. So I feel your pain, and heck, if I can help you, the year and a half of writing this book will be worth it.
Cheers man, good luck trading, and contact me if you are interested.
Well I will begin by saying that I don't always follow the rules I make and lose money as well, but the first thing is to have rules and follow them. Then slowly change the rules as you see fit based on your experiences. the second part is to control your emotions in the trade.
For me the best way to control emotion is to make small goals and to put everything in the open. don't worry about all the private public things, if your are looking to learn this, then you as will I need peer review and to do that they need to see you doing great as well as behaving badly. From what I could see my thought is to turn down the leverage to 100:1 for starts. In my opinion, with MT4 and the way units/lots are dealt with there I would have a max of 5 orders open at one time and have the order sizes as follows .01 .02 .03 .04 .05 and that's it. Remember Just because the chart is open does not mean you have to trade.
fxPairs have personalities of sorts some are slow and some are bi-polar and can change in a heart beat. find one that works for you based off of how you are in personality. For me the AUDUSD is fine,
Think of the trading account as wine or a good book, it takes time and the overall goal for all of us is to earn enough online that we can fire our bosses and be our own boss and in turn use the free time for family and things we are passionate about. The plus side is if you are passionate about forex then it real is a good deal.
your going to have to come up with a way to say I am going to close this order with a loss when this happens... and fill that in. Take a read of Michael covels book trend following, if you want also look up ed seykota whipsaw song for fun.
Questions to answer prior to entering a trade. How much to bet when to get in for a buy When to get in for a sell when to exit for a loss when to exit for a profit
Do not think of all the cool things you can do when you make a gazillion dollars, think of how to make 1 dollar and repeat that
In the book Reminiscences of a Stock Operator , there are two things I a going to point out, 'play a lone hand' you cant have fred tell you when to get in and hope I call back and tell you when to get out.
The other is never add to a losing trade.
The first one is easier to do than the second.
Also from the book trade in a manner and an amount that allows you to go to bed at night, 95% of the time I end my day with about 3 to 5 losses because I go to bed and I don't like to keep orders open overnight, thus I close all trades before I go to bed.
Don't look for other peoples rules and try to fit them to you, start a trade journal and write down why you enter and exit and the outcome, myfxbook keeps the numbers and all so that will help as well, if you don't have time for that, make small notes on the trades in the History part saying if it was a good or bad trade related to the rules you setup, remember you can have a profitable trade, but not follow a single one of your rules, say when that happens. In the trade log you should also say how you feel, knowing how you feel is important, for me if I start getting a headache on my right side with that cool feeling in the eye or nose, (like you went swimming) I stop trading, even if I am only an hour into it.
Well that's my brain dump as a reply to your question , I wish you luck, and don't deposit more than you make in one week, per year while learning, for me I deposit my part of the family tax return and my wife spends her half.
Go ahead and follow/add me if you want, and I can reply as needed to internal messages via myfxbook (when im not trading) also don't ask me to do all that autotrading stuff, I don't believe in that and think it does not help anyone learn to be independent.
Pardon any spelling errors and grammar thing's , I don't have my glasses on and this is my end of day off to bed time
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