DislikedBlown about 5 demo accounts and then the last one I have actually been able to make some money.Ignored
The market reveals who we really are...
Newbie here. That get rich quick appeal sure is tempting, especially after seeing the demo go form $50k to $120k in an hour and finding the sweet spots on a chart where I can say "if I bought here and sold there, I'd realize a 3000% profit!"
I started live trading yesterday with a few days worth of practice. First it was fractions of mini lots but it didn't take long before I was doubling my order size after each loss while suffering multiple losses simultaneously. What emotion.
I did find the holy grail, however. When I buy, exchanges drop. When my long positions hit a stop, they rise again. It's like magic.
Finally I opened my last position of the evening, putting my margin level at 125%. I set a stop which would have left my account down 10% from its opening value and went to bed. I'd live with the loss, it's a small account.
Woke up after dreaming that my equity reached $0 somehow and found my account about 10% above the balance I opened it with. What luck.
My plan now is to treat that 10% like it's 100% of the account and risk no more than 2% of the account at a time. I may still end up losing money in the long run but personally, I'd rather lose a small amount of real money while learning than make a large amount of virtual money.
When I blow the account, I'll post another reply.
Forexwindo
I started live trading yesterday with a few days worth of practice. First it was fractions of mini lots but it didn't take long before I was doubling my order size after each loss while suffering multiple losses simultaneously. What emotion.
I did find the holy grail, however. When I buy, exchanges drop. When my long positions hit a stop, they rise again. It's like magic.
Finally I opened my last position of the evening, putting my margin level at 125%. I set a stop which would have left my account down 10% from its opening value and went to bed. I'd live with the loss, it's a small account.
Woke up after dreaming that my equity reached $0 somehow and found my account about 10% above the balance I opened it with. What luck.
My plan now is to treat that 10% like it's 100% of the account and risk no more than 2% of the account at a time. I may still end up losing money in the long run but personally, I'd rather lose a small amount of real money while learning than make a large amount of virtual money.
When I blow the account, I'll post another reply.
Forexwindo
Newbie here. That get rich quick appeal sure is tempting, especially after seeing the demo go form $50k to $120k in an hour and finding the sweet spots on a chart where I can say "if I bought here and sold there, I'd realize a 3000% profit!"
I started live trading yesterday with a few days worth of practice. First it was fractions of mini lots but it didn't take long before I was doubling my order size after each loss while suffering multiple losses simultaneously. What emotion.
I did find the holy grail, however. When I buy, exchanges drop. When my long positions hit a stop, they rise again. It's like magic.
1) The problem with demo accounts is that people tend not to use money management; it's not real money, it is just bit of fun so you can take big risks. You can double an account in minute if you get lucky. In a way, I am lucky with demo accounts: I can easily empty a demo account... which shows how difficult trading really is. I was buggering about on Oanda. Had $110k. A couple of over-eager trades and account now down to $103k. Hmph.
2) Doubling your order size after each loss (or Martingale money management) isn't a bad money management technique... if you have a $500 billion dollar account.
3) That suggests you're entering too early, being too aggressive. Someone once told me that newbies can be right too early.
The market reveals who we really are...
- #49
- Apr 4, 2008 4:14pm Apr 4, 2008 4:14pm
- Joined Jan 2006 | Status: Monarch o' the Glen | 5,561 Posts
- #50
- Last Post: Apr 4, 2008 10:19pm Apr 4, 2008 10:19pm
- | Joined Mar 2008 | Status: Trader | 30 Posts
...I pull the plug to early and take a loss, then watch as the trade goes back in my favour, because its my money I am setting my stop losses to tight this is eating away my account, and the more I loose the tighter I seem to be putting my stops. Psychologically I am trying to keep any losses to a minimum but this is working against me.
I agree that newbies should open live accounts. I didn't demo trade for long but there is definitely a huge difference when the money is real. I think it's worth demoing until familiar with how to place stop orders to limit losses.
But what do I know, I haven't blown an account yet
.