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

  • #21
  • Mar 26, 2018 7:29am Mar 26, 2018 7:29am
Hi MagentFX, may I know what is the reason for you to lose all of it in one day? Is it because of no stop loss? or losing streak that consumed all the profit from the winning trades? thanks!
  • #22
  • Mar 26, 2018 7:43am Mar 26, 2018 7:43am
Quoting Billyoneer
Hi MagentFX, may I know what is the reason for you to lose all of it in one day? Is it because of no stop loss? or losing streak that consumed all the profit from the winning trades? thanks!

Hi Billy

That was years ago. Mainly because i was an amateur back then. Over risking on each trade was the reason no proper money management i would say
Avoid what is Strong,Strike at what is Weak
  • #23
  • Mar 26, 2018 7:44am Mar 26, 2018 7:44am
As a new trader you should not be compounding, no way on Earth. I never met someone new compounding that didn't compound his account back to $0.

1 lot size and one pair (two tops) and practice for a long time until you are confident, then change it and do the same.

If you are losing it all you are not controlling your risk, this all goes back to using one lot size and just practicing money management (in-trade) and know what your risk is before entering the trade.
  • #24
  • Mar 26, 2018 7:47am Mar 26, 2018 7:47am
Quoting Catch-22
As a new trader you should not be compounding, no way on Earth. I never met someone new compounding that didn't compound his account back to $0. 1 lot size and one pair (two tops) and practice for a long time until you are confident, then change it and do the same. If you are losing it all you are not controlling your risk, this all goes back to using one lot size and just practicing money management (in-trade) and know what your risk is before entering the trade.

Yes .On dot
Avoid what is Strong,Strike at what is Weak
  • #25
  • Mar 26, 2018 8:13am Mar 26, 2018 8:13am
Quoting Catch-22
As a new trader you should not be compounding, no way on Earth. I never met someone new compounding that didn't compound his account back to $0. 1 lot size and one pair (two tops) and practice for a long time until you are confident, then change it and do the same. If you are losing it all you are not controlling your risk, this all goes back to using one lot size and just practicing money management (in-trade) and know what your risk is before entering the trade.
if you are going to lose you will lose.
It does not matter if you are compounding or not, or any type of trading/...
SEE LINE,TRADE LINE..PRICE HAS TO GO SOMEWHERE,,, PRICE WILL GO SOMEWHERE.
  • #26
  • Mar 26, 2018 8:29am Mar 26, 2018 8:29am
Quoting billytt
{quote} if you are going to lose you will lose. It does not matter if you are compounding or not, or any type of trading/...
That's a really silly statement. Even if you are going to lose, you will lose a lot slower and gain more knowledge from the process.

Compound matters greatly because of the money involved and the psychology attached to that money.

If you are in a new poker tournament and you go from 10 dollars to 10,000 dollars, do you really think that it's even possible to play the same way?

The same thing is true for traders, the amounts (and not just the % of the account is of utmost importance).
  • #27
  • Mar 26, 2018 8:46am Mar 26, 2018 8:46am
Quoting Catch-22
{quote} That's a really silly statement. Even if you are going to lose, you will lose a lot slower and gain more knowledge from the process. Compound matters greatly because of the money involved and the psychology attached to that money. If you are in a new poker tournament and you go from 10 dollars to 10,000 dollars, do you really think that it's even possible to play the same way? The same thing is true for traders, the amounts (and not just the % of the account is of utmost importance).
you have misread my meaning..
i have compounded a lot and still do to a lesser degree but a loss is a loss....
it does not matter if it is a £100 lot or a £10000 lot. if you are going to get emotional you should not be trading.(not you personally)

compounding builds up an account, you dont have to do it 100%compound, just a few %%%.

As for Poker, i used to play online semi pro but Forex is easier and i can use probability,stats,odds to my advantage.

trade well
SEE LINE,TRADE LINE..PRICE HAS TO GO SOMEWHERE,,, PRICE WILL GO SOMEWHERE.
  • #28
  • Mar 26, 2018 9:00am Mar 26, 2018 9:00am
Quoting billytt
{quote} you have misread my meaning.. i have compounded a lot and still do to a lesser degree but a loss is a loss.... it does not matter if it is a £100 lot or a £10000 lot. if you are going to get emotional you should not be trading.(not you personally) compounding builds up an account, you dont have to do it 100%compound, just a few %%%. As for Poker, i used to play online semi pro but Forex is easier and i can use probability,stats,odds to my advantage. trade well
Couldn't disagree more a smaller loss vs a bigger loss is everything
  • #29
  • Mar 26, 2018 9:08am Mar 26, 2018 9:08am
Quoting Catch-22
{quote} Couldn't disagree more a smaller loss vs a bigger loss is everything
lol, you obviously do not trade..
Take care
SEE LINE,TRADE LINE..PRICE HAS TO GO SOMEWHERE,,, PRICE WILL GO SOMEWHERE.
  • #30
  • Mar 26, 2018 9:23am Mar 26, 2018 9:23am
Quoting Catch-22
{quote} Couldn't disagree more a smaller loss vs a bigger loss is everything
Sorry, i meant to say..
Compounding cent accounts????
SEE LINE,TRADE LINE..PRICE HAS TO GO SOMEWHERE,,, PRICE WILL GO SOMEWHERE.
  • #31
  • Mar 26, 2018 9:41am Mar 26, 2018 9:41am
Quoting billytt
{quote} lol, you obviously do not trade.. Take care

I was thinking the same thing about you.

Money/Trade management is all, if you don't get that then you don't know what the hell you are talking about.

Your attitude probably comes from excessive losses due to that lack of understanding.
  • #32
  • Mar 26, 2018 9:49am Mar 26, 2018 9:49am
Quoting Catch-22
{quote} I was thinking the same thing about you. Money/Trade management is all, if you don't get that then you don't know what the hell you are talking about. Your attitude probably comes from excessive losses due to that lack of understanding.
i beg to differ, i know i am right.
i have been there and done it.
i have had losses in the past and no doubt it is possible for me to have one again.
When you speak about money/trade management it is all oh so text book stuff.

You will only ever make money by using money,
Compounding grows your money with exactly same risk..Make money and get out, buy property..
If anyone gets emotional over a few grande of $$$/£££ they should not be trading never mind tens of K.

Do not answer me again as you are wasting my time....
Trade well
SEE LINE,TRADE LINE..PRICE HAS TO GO SOMEWHERE,,, PRICE WILL GO SOMEWHERE.
  • #33
  • Mar 26, 2018 10:01am Mar 26, 2018 10:01am
Quoting billytt
{quote} i beg to differ, i know i am right. i have been there and done it. i have had losses in the past and no doubt it is possible for me to have one again. When you speak about money/trade management it is all oh so text book stuff. You will only ever make money by using money, Compounding grows your money with exactly same risk..Make money and get out, buy property.. If anyone gets emotional over a few grande of $$$/£££ they should not be trading never mind tens of K. Do not answer me again as you are wasting my time.... Trade well
Cluelessness and arrogance is a dangerous combination. Good luck.
  • #34
  • Mar 26, 2018 10:46am Mar 26, 2018 10:46am
Making a small gain every day is the way,

Look at that gain as a percentage of your bank (not monetary).

The only trouble then is, once you have a few wins you suddenly know everything about forex. When infact you do not. Hence the Losses.

You need to be friends with the market makers (not literally) and once you realise how they operate you will be ok.
SEE LINE,TRADE LINE..PRICE HAS TO GO SOMEWHERE,,, PRICE WILL GO SOMEWHERE.
  • #35
  • Mar 26, 2018 10:51pm Mar 26, 2018 10:51pm
That means you'll have to rework the system in order to minimize that loss, improve accuracy, etc. You definitely don't want to continue as is if that one loss wiped away all of the recent profit.
  • #36
  • Mar 27, 2018 12:37am Mar 27, 2018 12:37am
Sorry if this sounds condescending, but it's really not rocket science. The answer is consistent risk per position. How much you lose on any given position is one thing that you can control.

Whether you choose fixed lot, fixed dollar, or fixed frac is up to you. But do the math and know the pros and cons of each MM, and then make an informed decision that suits your personality and trading goals.

I learned a lot about different MM approaches from Dr Ryan Jones' book. I don't use fixed ratio but reading his book made me think carefully about the available alternatives.
  • #37
  • Mar 27, 2018 4:05am Mar 27, 2018 4:05am
The “law of large numbers” says that winning and losing streaks are completely normal over a long enough sample size. It’s important that you stop judging your system based on 1, 2 or 5 trades and understand the implications of long-term thinking. Never change your system after a few losing trades!. Also don't be a over confident after few gain from the trading.
  • #38
  • Mar 27, 2018 5:32am Mar 27, 2018 5:32am
Quoting sandybrian
The “law of large numbers” says that winning and losing streaks are completely normal over a long enough sample size. It’s important that you stop judging your system based on 1, 2 or 5 trades and understand the implications of long-term thinking. Never change your system after a few losing trades!. Also don't be a over confident after few gain from the trading.
correct, you have to lose.

Every trade i do, i expect to lose. every battle has casualties, the best football teams ,tennis players, boxers can have points scored against ,drop sets or be punched but they win.
It is all about method and like Hanover says , it is consistent risk per trade.
i am not a good trader but i trade stats and lines and a losing trade is a minor set back, like going 1 nil down in a soccer game, or being a boxer who is a slow starter.
Play the game/odds/stats
SEE LINE,TRADE LINE..PRICE HAS TO GO SOMEWHERE,,, PRICE WILL GO SOMEWHERE.
  • #39
  • Mar 27, 2018 6:45am Mar 27, 2018 6:45am
Hi everybody normally I dont share my failures but I think its time to stop.
Its time to not to change my lot size.
My system gives me nice winratio, but when I get overconfident I change my lot size.
So this time I dont want to f*** it up.
Lets see if I can change this.
Everybody who is in my situation I understand the frustration, lets change buddies.
Tips are welcome
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  • #40
  • Mar 31, 2018 9:26am Mar 31, 2018 9:26am
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
Increasing lots randomly is very bad. You should have some rules. Suppose with 1000$ balance you take .05 lot that is .01 for per 200$. You can increase your lot to .06 from.05 once your balance is 1200$. Trading is all about being disciplined. You need to develop the mindset.
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