I got spooked........! | Forex Factory

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Got 30 or so minutes to spare? 32 replies

I got spooked........!

  • #1
  • First Post: Aug 23, 2007 10:52am Aug 23, 2007 10:52am
Today, i Mistakenly put my trading $1/ pip............While wanted to put 30 cent...

I entered at the top... GBP/JPY .....
GBP goes down hill and i got spooked.. I knew (asian trade time) it will be less then 50 or 60 pip (SL65) before it come back up again... but looking at $1/pip going down really make me nervous.... I bail out @ 38 pip......

right after i bail out... the market goes up again and come back to where it was. ....... I call it a day and go sleep ..... condemning myself to trade only 10/20cent per pip until end of this week....

After that, i come back before london trading time... and waited waited waited for the right signal.... (~6 hour wait.) finally the signal came... I took allot of pips @10 @20 cent, then ignoring my rule to trade on 10/20 cent and put 50 cent..... .

I took 10 pip, then re enter and take 10 more then re enter for more and more, end up paying MBT almost 40% :surprised in commission off my profit.. I don't really mind the amount of commission paid,

The thing is, I got scared...... It make me re enter & bail out so many times........because I am still afraid of the loss in the morning.....emotion distress....

I would appreciate any help on calming the fear in my heart so I can be a better trader...

Kind regards,
Syafi
  • #2
  • Aug 23, 2007 10:55am Aug 23, 2007 10:55am
This entire post is a great example of why you shouldn't day trade.

Try the H4 or daily charts. At least until you are profitable. Don't look at them all day long. You'll sleep better.
Disregard all prognostications.
  • #3
  • Aug 23, 2007 11:20am Aug 23, 2007 11:20am
I have a couple of things to add that might help.
First, like mentioned above you need to step away from the charts and not watch them so closely. If you sit in front of the screen looking at price go up and down you'll go crazy.

But more importantly, you need to establish good MM rules. Pick a risk you're comfortable with (like 1% per trade) and only trade that size consistently. You can't be using different lot sizes (% risk) from trade to trade. That could really do some damage to your account.
Anytime you enter a trade with a bigger size than what you're comfortable with, it'll affect you emotionally in a negative way (fear, impatience, etc). If you enter a trade with a size you're ok with(so if it's a loser it wont affect your account that much), you can let it go and not worry so much.

Good luck,
Tom
  • #4
  • Aug 23, 2007 11:29am Aug 23, 2007 11:29am
Another thing that you need to do, and it is difficult and I still have problems with it, is to take the emotion out of your money. You have your strategy, you know your signals, you know your risk and you have to accept the fact that you will make some losing trades. Once you accept that in your mind, you'll find it a lot easier. Another thing you may want to try (and I suggest that you try it on a demo account first, using the same lot sizes and risk that you use on your live account) is to move your stop losses up in small increments as the trade heads in your direction. You minimize your risk that way, but keep in mind, you also stand the chance of negating any profits should the trade whipsaw. That's why I suggest you try doing that on a demo account first.

Hope all this helps.
Nancy
  • #5
  • Aug 23, 2007 12:27pm Aug 23, 2007 12:27pm
Quoting Syafi
Today, i Mistakenly put my trading $1/ pip............While wanted to put 30 cent...

The thing is, I got scared...... It make me re enter & bail out so many times........because I am still afraid of the loss in the morning.....emotion distress....

I would appreciate any help on calming the fear in my heart so I can be a better trader...

Kind regards,
Syafi


Hi Syafi.

You already gave the first of two reasons yourself:
Putting more money "in" than you can cope with right now.
Limit yourself to amounts you can deal with emotionally. Only if you become consistent with those slowly start to increase them while comfortable still.

Second reason for the bail/re-enter: your reasons for being in the trades in the first place. You need to know WHY you entered and that there was a REASON for it. Without a reason you have uncertainty, with a reason you have a stop in place that will take care of you in case the reason goes away along with the stop. Then all you have to do is enter "right" according to YOUR plan and ALLOW the trade to go.

No setup = no trade.

That's pretty much it imho.
Easily said, not that easy to always do.

Take care,

SeekingLight
Trust price. Know yourself.
  • #6
  • Aug 23, 2007 12:43pm Aug 23, 2007 12:43pm
Yes...... thank you. ....

Its much easier to know the back of ourself when others tells us..
Like you said, the reason was already there.. realizing it after you said so ...

Enter re enter was due the rule. TP 10 pip hehehe.....
I was trying to stick to the rule... but then i admit, i let it run 20-40 at one time..
Now i know, its Greed, fear I still have them .....

God bless us all.
  • #7
  • Aug 23, 2007 5:56pm Aug 23, 2007 5:56pm
Quoting Syafi

I took 10 pip, then re enter and take 10 more then re enter for more and more, end up paying MBT almost 40% :surprised in commission off my profit.. I don't really mind the amount of commission paid,


Syafi
You have had some good advice syafi but this statement really stands out.
You really should mind paying 40% in commission as long term it is going to clean you out
You need to change your system if you can only take 10 pips and give 4 in spread.Also 65 S/L for 10 profit on GBP/JYP is not a very good R/R
On Auslancos thread Aus & Karmo have 100+ pip s/l for 200+ pip profit 4 pip spread is of little importance
As Pidgeon says you need really to trade longer term as you have watched the market for 6 hours then seen a trade and put on a bigger trade to compensate for your wasted time then you end up watching desperate to get out with any profit
My advice would be trade off daily charts using lower time frames for entries only risking 1-2% per trade and trade something less volatile such as EUR/USD
The greatest enemy of a good plan is the dream of a perfect plan.
  • #8
  • Aug 23, 2007 8:14pm Aug 23, 2007 8:14pm
Quoting Syafi
Today, i Mistakenly put my trading $1/ pip............While wanted to put 30 cent...

I entered at the top... GBP/JPY .....
GBP goes down hill and i got spooked.. I knew (asian trade time) it will be less then 50 or 60 pip (SL65) before it come back up again... but looking at $1/pip going down really make me nervous.... I bail out @ 38 pip......

right after i bail out... the market goes up again and come back to where it was. ....... I call it a day and go sleep ..... condemning myself to trade only 10/20cent per pip until end of this week....

After that, i come back before london trading time... and waited waited waited for the right signal.... (~6 hour wait.) finally the signal came... I took allot of pips @10 @20 cent, then ignoring my rule to trade on 10/20 cent and put 50 cent..... .

I took 10 pip, then re enter and take 10 more then re enter for more and more, end up paying MBT almost 40% :surprised in commission off my profit.. I don't really mind the amount of commission paid,

The thing is, I got scared...... It make me re enter & bail out so many times........because I am still afraid of the loss in the morning.....emotion distress....

I would appreciate any help on calming the fear in my heart so I can be a better trader...

Kind regards,
Syafi
Put it at .10c/pip as you had planned until you are swimming in pips. Trading GBP/JPY will give you enough money to feel confident with, unless you are rich already, trading just 10-20c/pip. Then raise it to your .50c when you are confident and trading well. It will not be a big jump if you know you are doing well. If you have less than $1000 account, I would suggest even going lower than .10c/pip.
The market is my nation. Traders, my family. Hello, brothers and sisters!
  • #9
  • Aug 23, 2007 10:58pm Aug 23, 2007 10:58pm
Man, I'd get out of MBT if you're trading little lots like that...with those darn 5$ one way commission.

Until I start making big money...I'm sticking with the "spread only" commission brokers....like IBFX.

I'm in the same boat as you though!

My first trade day in Forex...last week, I lost over 200 bucks in one day! Because I was doing what you did! LOL it was terrible.

This was before I knew you could trade .01 and 10 cent lots...lol! I was using $1

Now I'm rocking....I might only get 50cents at a time, or lose it...but I'm up 35 bucks now in 2 days, which is fine with me for right now.
  • #10
  • Aug 24, 2007 12:02am Aug 24, 2007 12:02am
MBT is $10 / round trip / 100000 standard lot.... 10 lot
trading 10cent is 10 cent commission....0.1lot
trading $1 is $1 commission....1lot

MBT software also don't save setting for 0.1 lot.. I didnt realize it..they make it back to $1 each day after maintainance or something, so weird.

I will stock to 10-30 cent/ pip for now ...
with only 1k in account, its better to trade like small trading out post.
  • #11
  • Last Post: Aug 24, 2007 5:20am Aug 24, 2007 5:20am
I found that Oanda is great for me as a 5 minute trader. It allows you to put in a percent of your account instead of using lots like most brokers seem to. This makes money management a heck of a lot easier.
Also, try reducing your leverage, this will help a lot with the emotional side of things.
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