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Making small gains each day + losing it all in 1 day

  • #1
  • First Post: Mar 24, 2018 2:34am Mar 24, 2018 2:34am
Hi Traders

How many of you have seen traders making 10 or 20 pips or even 100 pips everyday for a while and losing all in 1 day. Do u know why ?

or what is the best way to protect the profit made ?

1) Is it wise to not compound?
2) Is it wise not to increase the lots?

Your take on this plz
Avoid what is Strong,Strike at what is Weak
  • #2
  • Mar 24, 2018 2:53am Mar 24, 2018 2:53am
The reason for this question is i recently came across someone who did this recently. I was in the same situation few years ago. I thought it will benefit guys with the same scenario. Share your experience
Avoid what is Strong,Strike at what is Weak
  • #3
  • Edited 3:24am Mar 24, 2018 2:58am | Edited 3:24am
Quoting magentfx
Hi Traders How many of you have seen traders making 10 or 20 pips or even 100 pips everyday for a while and losing all in 1 day. Do u know why ? or what is the best way to protect the profit made ? 1) Is it wise to not compound? 2) Is it wise not to increase the lots? Your take on this plz
I always say,,,IF YOU DO NOT TRADE YOU DO NOT LOSE....

But we do trade, so limit the trading......

People who say they make 100 pips in a day or even a week should be very close to retiring. make some money then buy a house and rent it out.



edit.... Having said that, i have made the 100s of pips in a day in the past as you mention AND then lost it all .
i only had my self to blame and GREED.........
Brokers make it difficult but it is yourself that make it harder.
SEE LINE,TRADE LINE..PRICE HAS TO GO SOMEWHERE,,, PRICE WILL GO SOMEWHERE.
  • #4
  • Mar 24, 2018 3:29am Mar 24, 2018 3:29am
Compounding works. How you go about it is the real issue. Too often people change their trading strategy whenever they blow an account. However, not a lot of people will work on themselves, their psyche, and their emotions. A small streak of wins will make a trader over confident, they start over leveraging and over trading and throwing risk management out the window. You can increase lots, but increase lots ONLY after compounding your account to a certain balance. For example, you can use 0.01 lot on an 100 account until it gets to 200, then you can use 0.02. Don't go jumping into 0.02 lot after winning one trade or you happen to do 50% ROI in 1 day. When you can take things slow and learn to trade PROPERLY with a consistent strategy and knowing how to control your emotions, then you can be comfortable enough to do high risk trading and do crazy ROI everyday as your greed desires. People lose everything in 1 go because they can't accept a loss. It's all in the ego. Instead of taking a small loss, they fuel the fire by adding more positions and increasing lot sizes as price goes against them. They believe price will go their way eventually but when it doesn't, their account gets blown just like that. To stop this kind of habit of getting small gains and 1 big loss, set a stop loss BEFORE you enter a trade and don't adjust it. Also have a daily target for both wins and losses. (assuming 1:2 RR) If you did 5% ROI, then stop trading. If you lost 2.5%, then stop trading. If you happen to do 10% ROI (5% more than your target), you can SECURE the 5%, and risk the other 5% for a potential of a bigger return. If you lose that 5%, you're still up 5% and reached your daily target. Money management and controlling your emotions! Master those two things and you will break the cycle of small gains and big losses!
  • #5
  • Mar 24, 2018 10:18am Mar 24, 2018 10:18am
The best thing to do is to devise a strategy and stick to it, and try and overcome emotions and ego.

Accept small steady roll up rather than a flight to glory............. money management is key

Accept a max loss of say 2% per trade and you can be wrong 50 times in a row without losing your account.

If you could achieve 1% a day, and that is not surely a too difficult task if you can give it the dedication and discipline, you could roll up your account 11 times in 12 months ! ! ! !
  • #6
  • Mar 24, 2018 11:17am Mar 24, 2018 11:17am
Quoting wiseambition
The best thing to do is to devise a strategy and stick to it, and try and overcome emotions and ego. Accept small steady roll up rather than a flight to glory............. money management is key Accept a max loss of say 2% per trade and you can be wrong 50 times in a row without losing your account. If you could achieve 1% a day, and that is not surely a too difficult task if you can give it the dedication and discipline, you could roll up your account 11 times in 12 months ! ! ! !
  • #7
  • Mar 24, 2018 11:46am Mar 24, 2018 11:46am
A common mistake of newbies. I lost a lot within days when I started trading in late 2010. I would make some good profit but wanting more (call it greed or inexperience) I would over trade and then lose all my profit plus more. I had to change my trading style and develop my skill over time to turn things around.

KP
Do your homework, follow the footprints of smart money
  • #8
  • Mar 25, 2018 2:15am Mar 25, 2018 2:15am
Hi,

I tried to post a different thread but will pollute your one since I am not allowed to post. I've had 8 very profitable months... not one not two but eight. I increased my account with 35%. I lost everything I gained in one day. Just one day. Feeling very frustrated now and have no idea how to deal with it. Basically I am even after one year of trading but for what was all that journey?

Now still pissed off, my strategy used to work for so long and suddenly because of my greediness I concurred severe loss which vaporized all gains.

Honestly I have no idea how I am going to proceed from this point forward. Any help with motivation will be appreciated.
slow and steady
  • #9
  • Mar 25, 2018 3:15am Mar 25, 2018 3:15am
Quoting panaka09
Hi, I tried to post a different thread but will pollute your one since I am not allowed to post. I've had 8 very profitable months... not one not two but eight. I increased my account with 35%. I lost everything I gained in one day. Just one day. Feeling very frustrated now and have no idea how to deal with it. Basically I am even after one year of trading but for what was all that journey? Now still pissed off, my strategy used to work for so long and suddenly because of my greediness I concurred severe loss which vaporized all gains. Honestly...
This kind of scenario is actually more common than you think. Im sure many others have had similar experiences.
While I can not and am not qualified to offer any trading advice whatsoever, I do think that you should not let a setback ruin your goals.

IMO, losing 35% of gains in a single day could be interpreted as taking too large a risk on the trade(s) that you took. While I am not sure if that is true. If it is, you could probably scale back your position sizing? Those are just my opinions thou. Feel free to disregard them!
I look for value wherever it can be found
  • #10
  • Mar 25, 2018 3:29am Mar 25, 2018 3:29am
Quoting synicz
{quote} If it is, you could probably scale back your position sizing? Those are just my opinions thou. Feel free to disregard them!
Yes that's the first think come in mind after the hangover. Still doesn't prevent me from future mistakes. I started to write down all of my trades and recording them on video. Still have to take a lot of time to regain what is lost. And agreed, my main problem was that I made my trades too big.
slow and steady
  • #11
  • Mar 25, 2018 5:33am Mar 25, 2018 5:33am
Quoting magentfx
Hi Traders How many of you have seen traders making 10 or 20 pips or even 100 pips everyday for a while and losing all in 1 day. Do u know why ? or what is the best way to protect the profit made ? 1) Is it wise to not compound? 2) Is it wise not to increase the lots? Your take on this plz


Too often traders have a goal of letting winners ride to hit that big pay day. Sometimes just setting a PIP gain goal and once it is hit, take that profit is better. (or letting a trailing stop loss take you out) I would think that most people, who let what you stated in your post, happen are the same people who go back and check on trades that they got out of and kick themselves if it continued to be more and more profitable. below is a post from TradingProbability.com It touches on if the goal is to make income from trading, letting winners ride might not be the best method.

https://www.tradingprobability.com/l...run-a-fallacy/
Model 3 All Time Pips: -887
  • #12
  • Mar 25, 2018 5:49am Mar 25, 2018 5:49am
Quoting RedWingFan
{quote} ... below is a post from TradingProbability.com It touches on if the goal is to make income from trading, letting winners ride might not be the best method. https://www.tradingprobability.com/l...run-a-fallacy/
Great article ...
Market is not random but unpredictable
  • #13
  • Mar 25, 2018 5:54am Mar 25, 2018 5:54am
Quoting RedWingFan
https://www.tradingprobability.com/l...run-a-fallacy/
Thanks for the article. I faced the same issue many times. It is strange in the example that the runner of this trade didn't exit when the resistance was obvious at 0.81400.
slow and steady
  • #14
  • Mar 25, 2018 8:07am Mar 25, 2018 8:07am
Quoting panaka09
Hi, I tried to post a different thread but will pollute your one since I am not allowed to post. I've had 8 very profitable months... not one not two but eight. I increased my account with 35%. I lost everything I gained in one day. Just one day. Feeling very frustrated now and have no idea how to deal with it. Basically I am even after one year of trading but for what was all that journey? Now still pissed off, my strategy used to work for so long and suddenly because of my greediness I concurred severe loss which vaporized all gains. Honestly...

Hi panaka

I have been there myself 3 or 4 times. What i did to overcome that is .? I trade full time . I make 3 times more what a day job would be as a salary every month. So my target is to make that money everyday or weekly that is all. For example .

If you have 10k $ try to get 1 percent off that everyday when you make 1 percent. Withdraw it or transfer it to your vault. Tomorrow do the same thing. Day after do the same thing. Keep withdrawing keep some save some and when you want to increase your lot size ( Here im not saying increase your risk) Deposit more and trade 0.5% or 1% everyday or 2 days according to your plan.

What i mean is we get to enjoy the money we made everyday since we withdraw it .Instead of hoping to be a billionaire. 200-300 dollars is all is require to make a decent life. (for me only.yours might be different amount).Never aim for more than this. if you want more increase your deposit and aim as per your risk
Avoid what is Strong,Strike at what is Weak
  • #15
  • Mar 25, 2018 9:31am Mar 25, 2018 9:31am
Quoting magentfx
{quote} Hi panaka I have been there myself 3 or 4 times. What i did to overcome that is .? I trade full time . I make 3 times more what a day job would be as a salary every month. So my target is to make that money everyday or weekly that is all. For example . If you have 10k $ try to get 1 percent off that everyday when you make 1 percent. Withdraw it or transfer it to your vault. Tomorrow do the same thing. Day after do the same thing. Keep withdrawing keep some save some and when you want to increase your lot size ( Here im not saying increase...

This is absolutely not sustainable in the long term.
I am afraid you will figure this out at some point.
Don't give up on your dreams. Keep sleeping.
  • #16
  • Mar 25, 2018 9:56am Mar 25, 2018 9:56am
The problem is loading up on lot size each time. If you have a couple of wins you grow your account exponentially and you start to think this is sustainable but it isn't. You are essentially playing double or nothing. Try staying with the same lot size for the week and adjusting up or down weekly. This should smooth out the wild swings. Personally I do better if I trade 1/2 of my account and add to winners.

The other problem of losing it all in a day is frustration and overtrading. We all learned very young that you have to try harder to be successful but that doesn't work in trading. Here we have to back off when things aren't going well.
Enter Signature
  • #17
  • Mar 25, 2018 10:35am Mar 25, 2018 10:35am
This has happened to me lol, I was getting over confident and threw risk mabamanage out of the window... It's all down to each individual but the best way would be to stick to a plan and get out of any trades that are making you a loss rather than hold and hope they bounce back once you see the profits your happy with take profits.. don't start to add more lots into a trade you already have open thinking it's going to stick with the trend because it can reverse at any time
  • #18
  • Mar 25, 2018 11:36pm Mar 25, 2018 11:36pm
Quoting Artcool
{quote} This is absolutely not sustainable in the long term. I am afraid you will figure this out at some point.
I agree.

I am aiming 5% per month. 1% per day is almost impossible with my trading strategy and plans. I am not day trader and have not plans to be soon. My plan is to gain 5% per month. The problem is while my strategy was working consistently for eight months I became overconfident and greedy. And failed.
slow and steady
  • #19
  • Mar 26, 2018 2:18am Mar 26, 2018 2:18am
Reason so simple: greed, and over trading on high leverage without trading plan, target and control. That is just pure gambling.
We Win Some, We Loose Some, But Let your Win Rates be More to be Successful
  • #20
  • Mar 26, 2018 5:44am Mar 26, 2018 5:44am
Quoting Artcool
{quote} This is absolutely not sustainable in the long term. I am afraid you will figure this out at some point.

I think you didnt understand what i really meant. May be i did not explain well. I have been doing this for since i got burnt few times. It works for me. For someone not everyday profit ,may be everyweek every fortnight every day depends on the trader. What i mean is just take some out of your account to secure that for the month end, Just capital protection.
Avoid what is Strong,Strike at what is Weak
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