blew my account

i haven`t blow up my account yet..but i have seen my friend blown up his account only on 4 days.

from his experiment,and also from anybody else experiment i learn a lot about money management,risk management,dll..

i just newbie in this fx world and i still working with my $100 account. i use it as my training ground and also,if i get some profit,i could use it for my live ( i`am indonesian where $1= Rp 9,500 ^^ ) ..

all i could say is,experience always become the best teacher,even it`s not your own experience. and try to always review your trading before and after..that`s really works for me ^^..






so sry for my bad english

we have all done it... maybe not the entire accout but we have all been greedy and let things get out of contol you need to learn Money managment
you were sucked into the "get rich quick" moment!

try try again this time trade a micro account and get 10% a month and you can double your account sooner than you think.. then double again, and again, and again.

just study a method and FOLLOW THE RULES!!!!!

Oh boy, I remember when I was sucked into a "get rich quick moment", and I swear to god I didn't even realize Iw as doing it until 30 minutes later I blew over half of my account...I analyzed myself thouroughly, took a nice long shower, and came up with the reason why I did what I did...I was anxious to make money and greed set in.

I' don't have an issue pulling the trigger, thats simple for me, but it came at a disadvantage...I gaurentee you, from now on if you still decide to trade, you will look back at your blown account experience and before you put on another trade, you won't want to go through it again...it's almost like subconcious taking corrective action on yourself...but you have to be open to accepting what happen and truly learn from all of this.

I think below has already been said a million times, but I'll chime in with my 2 cents anyway. A few suggestions:

1) Wait until you have more money to trade with, and use a good ECN broker like MB Trading (it's like $400 min to open). But $1000 doesn't leave much room; I suggest twice that at least.

2) Make some risk management rules, and stick to them, i.e. only risk max 4% of your account per trade. Calculate the number of pips that equals with the lot size your trading with, and set a stop to that extreme loss amount (4% in this case) and no more.

3) Have another rule like if you lose X dollars or X % in a day, you're done for the day period.

If you're strictly sticking with good money management rules (i.e. no more than 4% risk per trade), you could flip a coin to decide your positions and still have a hard time blowing up your account. 50% winners, 50% losers for example, and you're still a long ways off from going broke.

Money management is everything (well, not everything, but certainly critically important no matter what the size of your account).

Sounds like you WAY overleveraged your account, and risked huge account %'s per trade. Good thing you only had $1,000; I'd encourage you to stick with it; if you learn your lesson properly here, you'll do much better when you trade with $100,000 rather than $1,000.

Best wishes...

After going through this thread I find out that there are traders who are in the same boat with me. I too,blew my account last year. Reason being I was indisciplined,impatient and most of all greedy. I know I made mistakes and I tried to correct them. I have to admit the truth though it is too painful.
I started learning through the mistakes I made. I make sure not to repeat them.
When the new year begins I start anew. Discard all the bad habits I have when trading in forex. Habit dies hard though. Today, with the small amount I have in my forex account, I try to play safe by :
1. Minimising the risk.
2. Trade only when I am very sure of profiting.( Wisely)
3. Create and use my own simple system even though I can see other traders using a complex one. I only read the thread as my guideline.
4.Not being greedy and being patient.
5. Last but not least I pray to God .And for the first two weeks in Jan 2008, I am doing fine.
To me, my motto is : What goes up must come down - Newton's Law.

Thanks to all of you guys for giving advice from your heart. I am going
to take it as challange and will test my emotions in micro account.

Thanks

- Blewout 7 times for about $18K,, Kept picking myself up.

Took 4 yrs. of no profit,, Now I am profitable.

Time table was like this.

3 yrs negative trading.
1 year even trading.
2 years profitable.

Well past 10,000 live trades now, started with REFCO , then they stole my money. ( i recieved 40% back as BK settlement 2 years later or so.)

Now I trade with FXCM, CMS, FXSOL, EFX for variety and benefits and diversity after the Refco bankruptsy. I trade in a different account or 2 each day, average 15K per month profit Using 3 things.

A Method- any will do. ( just have one )

Dissapline- took me years to give in! and admit my stubborness for wandering outside of the rules!

Determination- I wouldn't let them beat me! Period.

All good stuff here. I have blown several accounts (plural), and I think my thinking actually had to change before I began to make any progress. I had to realize that what you are up against while trading is actually yourself. It's almost guaranteed to be a losing battle in the long run when you cannot control yourself. When you have to fight yourself all the time you'll lose because you know how to outsmart yourself. I've discovered that the only way to combat this is to not even allow yourself to be put in that situation and for me that meant STRICT rules must be followed concerning mm. That is the key. I've made 100% in a week before only to lose 70% on one trade. Now instead of trying to make money I'm more concerned with keeping the money I've got. The money doesn't grow quite as fast, but it also stays around. That was the key (at least for me). I've heard all this before but I've always known a better way (ha!). Protect your money so you can continue to be in the game. The winners will take care of themselves.

Sorry to hear about your situation.
Stick with it is my suggestion.
I would strongly suggest you read this thread http://forexfactory.com/showthread.php?t=48909 before doing anything else and then also Jacko's thread.

Good luck for the future.

1. Signup for a demo account with any broker.
2. consider this as your live real money account and work seriously into trading carefully.
3. use just 0.1 Lot size always, no matter how big your account size is.
4. remember a drop by drop fills the ocean.
5. the day you return 100% green trades in 6 months continuous, consider yourself ready to invest real money.
6. until then keep learning.

1. in my 18 months of trading journey this is exactly what i did, and now i trade a real money account with no fear of loosing.
2. at 0.1 the gains are small, but then the losses also will be small should they happen.
3. drive carefully in forex.

All great advice here!!! as well one thing you want to consider is not "overtrading" Its a common mistake by new traders. Reason is that after a loss you want to make back your money so you have to keep trading and the more your wrong the more you have to risk to break even. When this happens you have to step back and use discipline to not trade "sometimes the best trade is no trade". As well when you have a string of bad trades then its time to take a step back and analyze your trading strategy on a demo to work out some kinks.... This advice has saved my account from the brink of extinction and happy to say still on the same live account for over a year now with some small profits monthly!!!

Bottom line dont OVERTRADE!!!!

congratulations on coming back from the depths of hell !
you prove that this can be done.

Don't give up on forex. i myself started with a demo account. i used 2 practice accounts for months prior to going live. I tripled one practice account and made about 50% with the other practice within 2 months....I.E. it can be very lucrative. I finally opened up a real live account with $5000 and followed my own pattern of trading. Within 2 weeks of going live i'm up 39% of my money....ive also lost some trades as well.
In my humble and unexperienced opinion, you need to simply find a pattern/trend for the day to capture some pips during the change of trend/shift....you won't win all the time, but you may also win more than you lose. You also don't need 100 pip days to be successfull with forex. If you can capture 10 pips each from about 5 trades (50 pips daily) (or however many trades it takes you to capture 50 pips) you should be golden; while adjusting your units per trade over time. I mostly look at the hour graph to get the best trend changes outlook.
Nothing is perfect and i or anyone would be a fool to tell you that any one particular system is perfect. you may eventually come up with your own system.
Hey...if it works it works..
Good luck trading
dread

Man, 3 years negative trading and you did not give up. That is a great testament to your desire to succeed.
Congratulations on your success..

Maybe some thoughts shared over few threads here could give you some insights.
http://www.forexfactory.com/showthread.php?t=3156
http://www.forexfactory.com/showthread.php?t=54985

One more idea which IMHO is a good way to measure whether we are in sync with the market. Practice drawing S & R lines using the EA and monitor your win loss ratio.

All the best and take care.

Even the experts have gone through this:

http://www.pfxglobal.com/index.php?o...542&Itemid=116

I've been trading a live account for just over 1 year now. I started with a $1,000 account also. After my 1 year, I've doubled my account, and I can honestly say my success is due to money mangement. Trading at about $0.25 a pip, I'm not going to make millions, but it gives me the confidence I need to see a trade through, even if it goes against me at the beginning, and give it a chance to be successful.

I have an acquaintance at work who I got started in Forex. Although new to Forex, he has traded stocks for years. When I told him the approx. pip value I use in my positions, he asked me "What's the point of even trading? You'll never make any money". One year later, his lack of success has cost him his account and the motivation to continue trading.

Find a system. Learn the system. Stick to the system. Manage your account.

-M

You know people, I dont think what happened to ForexMad is such a bad thing.
If he hadn't blown out atleast once or twice early on in his trading, he might have gone on
to make beaucoup $$, only to lose it all, and then some more (believe me, it's too easy).
The tough part is how emotionally draining it can be to lose profits, beside seed capital.
It's the realization that all the work you've done, including some really killer trades,
just got washed away while you weren't paying attention, or maybe while you watched in horror.
Maybe you couldn't even bear to look. Either way, it was like a trusted "friend" just f**ked you.

But remember, THE MARKET IS NOT YOUR FRIEND. Neither is your broker, if you trade retail.
The market is Moby Dick and you're Captain Ahab. Not really even Ahab.
As traders we are more like Ishmael, the wandering sailor on the Pequod.

Ahab is your broker and if you can survive his Bullsh*t, you still have to contend with the whale.

There, I think that sums it up.

So, this is gonna toughen ForexMad up a little bit. This is a necessary rite of passage.
Gotta lose you ass a few times. You guys know this. ForexMad will know this soon enough too.

Here's the only thing that will eventually either make or break this would be trader:
Don't give up, buddy. If you leave, you get nothing. You may still wind up with nothing,
but, if you leave now, for sure you'll get nothing except forced out of the market.

Do you want to be a trader - specifically a Forex trader ?? How bad ??
Do you want to be a successful (profitable) trader ? How bad do you want to be one ?
Would you give up everything you have to make it happen ? That's not a flip question.
And that doen't mean you'd have to do anything quite that extreme.
Many people find a good balance between trading and other aspects of life and living.

On the other hand, some people have literally lost everything in pursuit of the FX rainbow.
Not just all their money and stuff. Family, careers, even their freedom as the "rougue trader" element took over them.
For most of these poor souls (and I mean poor - 'cause they're broke now), they're probably beyond redemption.
10 million dollars wouldn't help them, beacuse they can't accept winning.

Don't be a market addict. Find a vice or addiction that's treatable.
Start smoking or whacking off or something you can cure.
Just don't let the market consume you. It can if you allow it to.

It's not worth it for most of us.......For some of us, there is nothing else.....
Sadly, for the rest of the masses, there is nothing else left.

I wish to revise and extend my previous comments so as not to offend anyone.
(or perhaps to offend anyone I may have missed last time - I'm not sure).

I think much of what wanted to impart was directed to ForexMad so as only to
stress how important it is to not give up. That is if you truly want to do this.
Everything else takes time and it will fall into place in it's own time, just give it time.

Now for the rest, I think if someone out there has ever lost big, like substantial 5 or even 6 figures,
made it back, lost it again, whatever... they wil embrace what I'm taking about. The extremes.
Even the part about smoking and whacking. Just remember, everything in moderation :-)

If someone has lost small, it might seem a bit much. Extreme in fact.
And that's just it. If you've seen the extremes, you'll recognize the signs.
It's no doubt some veteran traders would read a post entitled, "blew my account"
this far along only because they too have done so before and have the natural curiousity to
peek at the past, where they once were.

I'm no expert on anything, but I know about the extremes. Every once in a while,
the market hands you a turd. What can you do ? That's how it goes.
The day a trader stops allowing a small turd to turn into an avalanche of sh*t
is they day he/she will move beyond, "blew my account" and into " I broke even this month"
and further into, " I made pips last month" and into, "was profitable 10 out of 12 months last year" and so on.

By the way, I lose money too. I don't let it get me down. It's like paying bills.
Some months they are higher than others, especialy at the extremes (summer/winter).
But I don't bury my head when the water bill arrives, I just pay it, even if I had a leak that month.
On rare occasions, the bills in total exceed income. Then I'm piss*d off.
But you know what I do ? I pay the bills. I'm piss*d off and my bills are paid.

Next month, I'll check the pipes more carefully and turn a few lights off, maybe use candles ;_) - not really....

If $1,000 is not a lot of money to you then you should keep at it - even though this is an unforgiving market. If $1,000 is a lot to you, then you should keep to the sidelines until you are more confident in your decision-making. Either way, get educated and keep persisting. Just don't hurt yourself trying to make it happen.

Good luck with it all