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Splexin
May 04 2011 at 17:22
202 сообщений
Last fall I blew my entire account thanks to a non-existent money management strategy. That and emotional trading-- staying up for literally 24 hours watching every market tick etc etc but still missing the big moves whenever I napped. Needless to say the market really taught me a lesson and I exited Forex with my tail tucked between my legs.

Two months ago, I became interested in Forex again and got together another small pile of cash. But this time I was determined to do things right. So I spent one month doing nothing but 'reeducating' myself, watching Forex videos and reading guides etc. On top of that, I discovered an excellent risk calculator that calculates SLs TPs etc for each trade. It has been a lifesaver. Then I spent a month trading demo, some would suggest longer but I have more than a year previous trading experience. And the month I spent on demo was actually longer than I practiced last time.

Long story short, last week my emotions creeped out again. I had been doing OK so far, but only gaining 3%. I made a huge mistake in position sizing as well as when and where I placed the trade. Broke virtually every rule of my system, and I paid dearly for it. Just in that one trade I lost nearly 20% of my account, subsequent losses brought that total almost to 25%!

At this point, most people would say to stop trading before you lose any more. 25% loss is a big deal no matter how big or small the account is. But I was determined not to give up or let one bad day get to me. Needless to say I learned my lesson.

Starting May 1st, I began trading multiple positions and using hedge-like tactics to protect my positions. I also employed the money management strategy I should've used all along. The last 2 days I've dropped the hedging tactics and simply reduced position sizes, only increasing them (and decreasing SL) whenever I could ride on a breakout. Now I'm proud to say that about 5 hours ago, I closed the 'second to last' trade that will bring me >= break-even.

Only 3% out of that disastrous 25% loss remains to be recovered. When you put it in perspective, had I not lost it in the first place, then I would have a 20% gain just for this week! Maybe I'm just having a good week, or maybe I am becoming a better trader. I hope to continue this improved trading. Only time will tell for better or for worse.

Psymon (psymon)
May 05 2011 at 02:12
61 сообщений
Thats great to hear, I don't think that anyone who trades ever stops learning; constant evolution in ones system, recognizing old and new emotional pitfalls and avoiding them, etc etc.

I don't think that i'll ever feel like a veteran trader, just because the more i learn the less i realize i know!

Congratulations on a great week, are you give your self a long weekend?

psy

Splexin
May 05 2011 at 02:21
202 сообщений
Thanks! Yeah I thought I knew a lot, but the more I trade the more I realize there is so much I don't know. lol

Yes, I will be staying out of the markets the remainder of the week. I think it's great to end a week strong and early so I can go into next week feeling refreshed and ready for more adventures. Usually I avoid NFP trading unless I can catch a breakout and use extra-small position and SL. But I definitely plan to sleep in late tomorrow :)

I do have a couple limit orders open right now but they are far from being hit and will be expiring in the next 2 hours.

light (traderlight)
May 05 2011 at 04:34
18 сообщений
Hi Splexin,

I thought I saw you wrote you turned a $50 000 account to $14M in a short period of time, no?

I don't know you, but i think that is too much money for an ordinary individual to have. Did it happen that you gave this large pile of cash back to the market, or you just went frenzy spending it for fun and party? Btw, also if you don't mind, this small pile of cash you use to re-start your trading is less than 50K?

Happy trading!

Splexin
May 05 2011 at 04:41
202 сообщений
traderlight posted:
    Hi Splexin,

I thought I saw you wrote you turned a $50 000 account to $14M in a short period of time, no?

I don't know you, but i think that is too much money for an ordinary individual to have. Did it happen that you gave this large pile of cash back to the market, or you just went frenzy spending it for fun and party? Btw, also if you don't mind, this small pile of cash you use to re-start your trading is less than 50K?

Happy trading!

That was on demo. Now that you remind me I probably should've never mentioned it. I turned $50K into $14 million in less than 1 hour. It was a fluke. I achieved this by recognizing a minute delay between my demo broker and a real-time feed. I was just curious to see how much I could rack up. On a live account the delay would not exist.

I have never traded live with more than a few grand. But I am going to see if I can double my account every month by setting a goal for every week every day etc. It can be done. I traded stocks and gained 400% in 3 months on a live account. Obviously forex is much different than stocks but I do have a knack of achieving large gains in little time.

Splexin
May 05 2011 at 04:48
202 сообщений
My bad.....$20 milllion......lol

Вложения:


light (traderlight)
May 05 2011 at 05:36
18 сообщений
Ah right, that must've been easy because that's like knowing the future in precise detail! I sometimes daydream that I have this power lol.. Anyways, hope you do well with your new trading!

Regards

zzzero
May 05 2011 at 05:37
1367 сообщений
my opinions are almost completely unpolluted by real knowledge.

z/.



speki
May 05 2011 at 10:12
735 сообщений
Splexin posted:
I have never traded live with more than a few grand. But I am going to see if I can double my account every month by setting a goal for every week every day etc. It can be done. I traded stocks and gained 400% in 3 months on a live account. Obviously forex is much different than stocks but I do have a knack of achieving large gains in little time.


Hm... well if you do have a knack, let's see how it's done. Double your account every month sounds quite challenging. Don't know why but I see people decimating their accounts much more often than double it. I wish you a lot of luck - please keep us updated!

Surround yourself with people whose eyes light up when they see you and who have no agenda for your reform.
Splexin
May 05 2011 at 19:23
202 сообщений

speki posted:
Hm... well if you do have a knack, let's see how it's done. Double your account every month sounds quite challenging. Don't know why but I see people decimating their accounts much more often than double it. I wish you a lot of luck - please keep us updated!

Had I been awake at 5 AM my time I could've doubled my account already...
LOL @ EUR/USD

Ah well, steady wins the race!

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