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  • #1
  • First Post: Jan 11, 2008 1:00pm Jan 11, 2008 1:00pm
Hi Experts,

I am only 1 month old in forex. First I started with forex.com demo, after
seeing consistent profit, open a live mini account for $1000 and then $250.
I have blown everything in 1 week. I hope you guys might have also this kind of experience. Please share how many of you come out from that situation and how?.

I am very confused now and don't know whether to continue forex or not.
It s all depends on your replies. If there is no successful trader within
1-2 years experience then I will give up.

forex mad
  • #2
  • Jan 11, 2008 1:04pm Jan 11, 2008 1:04pm
read as many books you can..
Learn about indicators..
Money management techniques..

Study and study is all i can say..

People do make lots.. people do lose lots.. thats how it goes...
  • #3
  • Jan 11, 2008 1:09pm Jan 11, 2008 1:09pm
F,

It happens to the best and most experienced of us.

I don't want to completely equate FX trading to gambling, but it's sort of the same thing...but you have to the proper bank-roll (i.e. money management probabilities) in order to survive the waves.

For a mini, $1000 is a bit tight. At $1 a pip, 1 100 pip loss will set you back 10% of your account. Depending on your time frames, it could be a tough go...

For the type of account, I would definitely recommend absorbing smaller loss points (like micro- or nano-lots).

You will learn about money management as you progress...good luck.

Quoting forexmad
Hi Experts,

I am only 1 month old in forex. First I started with forex.com demo, after
seeing consistent profit, open a live mini account for $1000 and then $250.
I have blown everything in 1 week. I hope you guys might have also this kind of experience. Please share how many of you come out from that situation and how?.

I am very confused now and don't know whether to continue forex or not.
It s all depends on your replies. If there is no successful trader within
1-2 years experience then I will give up.

forex mad
  • #4
  • Jan 11, 2008 1:11pm Jan 11, 2008 1:11pm
Quoting jacobtrader
Money management
Including risk management.

The #1 and 2 reasons for a blown account.
  • #5
  • Jan 11, 2008 1:22pm Jan 11, 2008 1:22pm
Hello ForexMad,

Blowing an account within one week means that your Money Management was out of whack, regardless of the size of the account. You were probably overleveraged and overtraded to oblivion.

If you decide to continue trading, those two mistakes should be the lessons to learn from your blowup.
  • #6
  • Jan 11, 2008 1:28pm Jan 11, 2008 1:28pm
Quoting forexmad
Hi Experts,

I am only 1 month old in forex. First I started with forex.com demo, after
seeing consistent profit, open a live mini account for $1000 and then $250.
I have blown everything in 1 week. I hope you guys might have also this kind of experience. Please share how many of you come out from that situation and how?.

I am very confused now and don't know whether to continue forex or not.
It s all depends on your replies. If there is no successful trader within
1-2 years experience then I will give up.

forex mad
I would say your not cut out for trading FX..... But I could be wrong, so if you think you want to continue, maybe you should start here....... babypips.com
Same Whore .... Different Dress
  • #7
  • Jan 11, 2008 1:41pm Jan 11, 2008 1:41pm
Quoting forexmad
Hi Experts,

I am only 1 month old in forex. First I started with forex.com demo, after
seeing consistent profit, open a live mini account for $1000 and then $250.
I have blown everything in 1 week. I hope you guys might have also this kind of experience. Please share how many of you come out from that situation and how?.

I am very confused now and don't know whether to continue forex or not.
It s all depends on your replies. If there is no successful trader within
1-2 years experience then I will give up.

forex mad

I am in the same boat. I also blew one account but then I stopped. I went back to demo and practising it. I have decided I will practise it long enough till I will make consistent profit for 3-4 months. I learning a lot. FF is great source of Information. If you are very new go to babypips.com it is also very helpful.
  • #8
  • Jan 11, 2008 1:51pm Jan 11, 2008 1:51pm
I did the same thing with a $8000.00 account! Though not in only one week, mine took about one month. However I took it as a learning experience, sort of like paying for a couple of semesters of college, instead I got a crash course! That was January of 2006, I did not take another trade until October of 2007! During my sabatical from trading I spent countless hours studying, all things about forex. Money management, indicators, price action and so forth. I will not say that I am and expert but I will say that I am alot smarter than when I first started. I opened a new account with only $200.00 and I trade micro lots, usually only about $.20 per pip, I feel trading live you learn alot more than demo because losing real money makes it real. My advice is to take time off of live trading for a long time, use it as a learning experience, study study study! The money in forex will always be there, the chance at becoming a millionaire will always be there. Where will you be 5 years from now? Probably at the same job and the same house. So is it really that big of a deal if it takes 5 years to become regulary profitable in forex?
Good luck!
Cadillac Pippin
  • #9
  • Jan 11, 2008 1:59pm Jan 11, 2008 1:59pm
Quoting forexmad
Hi Experts,

I am only 1 month old in forex. First I started with forex.com demo, after
seeing consistent profit, open a live mini account for $1000 and then $250.
I have blown everything in 1 week. I hope you guys might have also this kind of experience. Please share how many of you come out from that situation and how?.

I am very confused now and don't know whether to continue forex or not.
It s all depends on your replies. If there is no successful trader within
1-2 years experience then I will give up.

forex mad
Please read this post for starters....
http://www.forexfactory.com/showpost...20&postcount=1
  • #10
  • Jan 11, 2008 2:07pm Jan 11, 2008 2:07pm
Losing money for a couple years seems to be the norm with trading. Its like learning a new language. It takes time to get good at it. Why don't you post your log or a few trades you made with reasons why you placed them.
  • #11
  • Jan 11, 2008 2:18pm Jan 11, 2008 2:18pm
We have all been there and know how you feel. Now is the time you need decide how badly you want this. If you know that trading is what you want, you will learn to make the necessary changes (i.e. money management, risk management, etc).

Best of luck to you.
  • #12
  • Jan 11, 2008 3:24pm Jan 11, 2008 3:24pm
I can relate to your experience - last January I started trading forex and I went through 3 accounts in as many months at $2000 per account, each time thinking I knew what I was doing because I read some pages of a website telling me how easy it is. The last account was the worst. I turned my $2000 into $21,000 on a lucky run, then I lost my job (they closed the call center I worked in - I didn't get fired for trading). I took $12,000 out of my account and gave it to my wife thinking there was always more. So with a little over $9,000 in my account I figured I would make a go of trading for a living after just a few months experience. In an attempt to make a long story shorter I will just say that, after some self study, I've concluded that the 3 weeks it took me to not only lose the $9,000, but also to go $12,000 into credit card debt (after all - I had just taken it out, so it was mine to trade) in trying to prop up several compounded losing trades was the most frustrating and stressful experience of my life. I finally let that account crash and burn after I got my new job and then spent the next 9 months demo trading and studying like a madman (ask my wife). Poring over books, websites, anything I could to figure out what went wrong.

Bottom line was exactly what everyone else will tell you - money management. Don't risk what you can't lose...EVER. Cut your losses, don't let them ride, and never backup a losing trade thinking you'll double the profit when (if) it comes back.

I just started trading again live on Jan 2 this year with a $1000 account using a modified version of Harold4X's "Key to the Mint" method and I'm following my rules which are written down in blood (figuratively) as laws on the side of my PC. Right now (knock on wood) I'm up to $1785 and currently growing on a really nice 265+ pip GPB/JPY trade. Amazingly I actually did some research and figured that it would break 231.50 which was acting as support.

I look back at the last sentence and have to laugh because I actually blew through my first three accounts not understanding what support or resistance was and these are really the simplest building blocks. The ABC's of trading.

Besides money management, which is by far the most important lesson I've learned, this journey so far has taught me:

1) don't trust an indicator unless you understand the concept behind it. What is it indicating?
2) never blindly use someone else's system or signals - know why the system works (or not).
3) test, test, test - there are so many ways to ensure you can verify a system of rules that there is no reason to trade unless you know you'll make money over time. This also nets you valuable experience.

Well, hope my story convinces you to put in the time and effort necessary to learn what you need to know to trade forex successfully.

Cheers,

Braddrab
  • #13
  • Jan 11, 2008 3:32pm Jan 11, 2008 3:32pm
First off i want to say ....i feel your pain!!!!!!
How long did it take for u to go from demo to live account?
What i would do is...firstly i think forex is a science in itself it requires knowledge and even this will still not mean u cant lose money. Study chart patterns look for them on a demo account, learn the basic, better still pay to do a course, most people dont do this and try and save the money and end up blowing there account, u simply cannot get around a learning curve which needs to happen b4 u go live.

test a system, make sure its profitable. think about every trade ,what do u stand to lose if it goes wrong, is the risk to reward ratio, 1:1.5 if not then stay away. make sure u go through all the time frames start at weekly,monthly.4hr.1hr,30 mins,15 min putting in every support and resistance u see....then get the fibs out to add extra support or resistance...lol
U then need to look for a break....
place trade stop loss 35 pips away no mater what! risking max 2%....did u do all this? ....if the answer is no then u wernt trading brother!! u were gambling and u took shortcut. U have to remember forex pays because people lose money and u just have to understand u probably didnt give yourself a fair chance b4 entering the market .....pick yourself up and study more...u can do this.
PS ....i started for 4 weeks ago myself and am currently still losing nicely on my demo account....its all about money management, risk analysis coupled with good analysis of charts and the right psychology. Its the psychology part thats letting me down more than anything else...
good luck with the comeback
  • #14
  • Jan 11, 2008 3:36pm Jan 11, 2008 3:36pm
Kudos for having the guts to come on a forum and admit defeat.
I blew an account out more than once also. Part of the learning
process my friend...

If you're still interested in forex, i suggest trading demo
or small account $25 on Oanda for the time being.
  • #15
  • Edited 6:21pm Jan 11, 2008 4:49pm | Edited 6:21pm
Quoting Braddrab
I can relate to your experience - last January I started trading forex and I went through 3 accounts in as many months at $2000 per account, each time thinking I knew what I was doing because I read some pages of a website telling me how easy it is. The last account was the worst. I turned my $2000 into $21,000 on a lucky run, then I lost my job (they closed the call center I worked in - I didn't get fired for trading). I took $12,000 out of my account and gave it to my wife thinking there was always more. So with a little over $9,000 in my account I figured I would make a go of trading for a living after just a few months experience. In an attempt to make a long story shorter I will just say that, after some self study, I've concluded that the 3 weeks it took me to not only lose the $9,000, but also to go $12,000 into credit card debt (after all - I had just taken it out, so it was mine to trade) in trying to prop up several compounded losing trades was the most frustrating and stressful experience of my life. I finally let that account crash and burn after I got my new job and then spent the next 9 months demo trading and studying like a madman (ask my wife). Poring over books, websites, anything I could to figure out what went wrong.

Bottom line was exactly what everyone else will tell you - money management. Don't risk what you can't lose...EVER. Cut your losses, don't let them ride, and never backup a losing trade thinking you'll double the profit when (if) it comes back.

I just started trading again live on Jan 2 this year with a $1000 account using a modified version of Harold4X's "Key to the Mint" method and I'm following my rules which are written down in blood (figuratively) as laws on the side of my PC. Right now (knock on wood) I'm up to $1785 and currently growing on a really nice 265+ pip GPB/JPY trade. Amazingly I actually did some research and figured that it would break 231.50 which was acting as support.

I look back at the last sentence and have to laugh because I actually blew through my first three accounts not understanding what support or resistance was and these are really the simplest building blocks. The ABC's of trading.

Besides money management, which is by far the most important lesson I've learned, this journey so far has taught me:

1) don't trust an indicator unless you understand the concept behind it. What is it indicating?
2) never blindly use someone else's system or signals - know why the system works (or not).
3) test, test, test - there are so many ways to ensure you can verify a system of rules that there is no reason to trade unless you know you'll make money over time. This also nets you valuable experience.

Well, hope my story convinces you to put in the time and effort necessary to learn what you need to know to trade forex successfully.

Cheers,

Braddrab
I was inspired to read yur story ..welldone buddy
  • #16
  • Jan 11, 2008 5:08pm Jan 11, 2008 5:08pm
There is a saying that "trading is the hardest easy money you will ever make"
I agree with that statement. I turned a $2,000 demo account into $250,000 in three months as a newbie. I was so excited! I opened up a live account with $10,000 believing that the very worst possible outcome was $100,000 over the next three months. In three months the money was gone
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  • #17
  • Jan 11, 2008 5:09pm Jan 11, 2008 5:09pm
The problem with demo accounts is that you can do great, no stress, no real money involved whatsoever. When it comes to real money, even opening a position, you will be down anywhere from 2 PIPs and higher because of the spread. Now you get worried when you are down more and more as price goes opposite your position. Its falling further and further away, you stay in saying to yourself that it will turn around. Guess what? You are now down 100 PIPs, 200 PIPs, and still saying it will turn around..... The worse thing is then you start playing with that margin thingy to keep that margin above 100% so can trade without selling off a losing position. If you have a big bank roll then that's fine.....

OK, my better half blew away several standard accounts in as little as three days to as long as one month, is this a record? Now trading those micro-lots I think they call them, raking in 100-300 PIPs per day - too bad not a mini or even a standard lot I say.
  • #18
  • Edited 6:44pm Jan 11, 2008 5:28pm | Edited 6:44pm
I spent the next 2 years, literally countless hours of screentime studying charts and researching systems and techniques. I read books and took advanced trading courses. Thanks to the risk management and capital preservation techniques I learned, it took the whole two year period and over 1000 live trades to lose the next 10,000. No doubt about it, I had improved! - LOL
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  • #19
  • Jan 11, 2008 5:28pm Jan 11, 2008 5:28pm
I've lost two accounts since 1999.

I've only been profitable for a little over a year.

It's not an easy game.


10 Steps

1) Knowledge Acquisition Great traders are voracious learners. Most professional occupations have a learning curve. Doctors, lawyers, criminals, etc.. often study years to refine their craft. Novice traders often believe they are immune to such time intensive studies. Don't fall prey to such ignorance - study the markets, put in serious chart time, read and learn from those that are winning.
2) Money Management This one is simple. Trading more then 2-5% of your account on any one trade is account suicide. Let's assume you start out trading a $1000.00 mini-account. Your system has a 30 pip stop loss. The maximum you should risk on any one trade is a dollar per pip. The market will forgive a lot of things - bad trades, bad days even bad weeks but without the capital to withstand the drawdown your trading career with be short lived.
3) Simplistic Strategy Have you ever noticed Forex scam sites often provide a unique system that only they have? Additionally - these systems are only known by a hand full of successful traders. Your system should do just the opposite. I use pivot points, psychological levels and trend line breaks because large institutions follow these levels. As a retail trader your goal should be to pick up the pennies in front of the steam rollers. Keep Occam in mind when adopting any trading system. Leave the over complicated systems to the guys at Long Term Capital.
4) Trade During Prime Time One of the biggest benefits of the currency markets is its hours. It's open 24 hours a day 5 days a week. This is great for trend analysis but not for trading. Don't let these extended hours fool you. Only the biggest players trade during the prime hours... so should you. Keep in mind that only 14% of all trades occur outside of non-financial institutions. That's where the retail trader lives. Since we only trade the EURUSD we only trade between 2:00am and 11:00am EST. This time period covers the European open and close, the open of the US session and the overlap between the US session and the European session.
5) Follow Your Trade Plan You don't know where the market is headed. Don't guess. Hope isn't a strategy. Once you adopt a trading strategy that fits your trading style stick to it. Leave your ego at the door when you begin your trading day. This is one of the most difficult things to overcome. The old adage plan your trade and trade your plan is very important. When you trade outside your plan you will lose.
6) Double Your Demo Account Almost every Forex trading platform offers demo accounts. When you can double your demo account you are ready to trade real capital. Additionally - after your double your demo account trade the first few months of you real capital using micro-lots where each pip equals a small dollar amount. This will help ease the emotional impact of trading real capital.
7) Trade with the Trend All those little axiom's about the trend exist for a reason - the trend is your friend... trade with the trend until it bends... trade the trend or lose in the end - you get the idea. These exist for a reason. They are true. Use long term trend analysis to determine market direction. When you trade with the trend your chances of success are greatly enhanced.
8) Set Realistic Expectation What's realistic? If you can return 5-8% a month you are doing great. While this may seem like a relatively small goal very few traders can achieve this month after month. If you set unrealistic goals - say 20% a month you better be sitting beside John Arnold because that's about the only way your going to see that kind of return.
9) Post Trade Analysis When the trading day is over take a few minutes to analyze what happened. Did you follow your trading plan? Was your analysis accurate? Why? Why not? At the end of the week spend some quality time looking over the trades you placed during the previous week. How many trades did you take? Are you over trading? Many traders find it advantageous to keep a journal of their trades and their thought process for taking or not taking the trade. In a very short time you will see patterns emerge that will aide you in fine tuning your trading.
10) Predetermined Profit Targets and Stops Setting your stop loss is a must. Intra-day traders usually use a 20-40 pip stop. After you've adopted a system and spent hours watching the chart you will know where your stop should be. Once you've settled in on a stop never move it. One more time - never move your stop! Remember that capital accumulation is secondary to capital preservation. On the other side of the equation set profit targets prior to entering your trade. Utilizing pivot points will always provide you with realistic profit targets.
  • #20
  • Edited 6:43pm Jan 11, 2008 5:49pm | Edited 6:43pm
The personal cost to me was huge. I was not a wealthy man when I started. I am a single Dad and missed part of my children’s childhood chasing the dream of making things better. We missed family holidays because of the money I lost and the money I didn’t earn whilst sitting at a computer trying to figure out a way to win.. I am now profitable but in debt and have little funds. I would not wish what I did to myself on anyone. Ask yourself, are you prepared to give everything you’ve got and some? More importantly, ask yourself why you would sacrifice so much time, effort and expense with no guarantee of success?
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