blew out another account...Just venting... | Page 3 | Forex Factory

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blew out another account...Just venting...

  • #41
  • Jan 25, 2007 7:30am Jan 25, 2007 7:30am
My fave so far on this thread!!

Quoting ch33z3
Sigh... I blew up stock and currency accounts. My family loves me right now. Anyways, yea...

P.S. Made a bad trade? Do pushups to failure for each bad trade. Then meditate on white noise for about 15minutes. Google creativity machine. If you blow your account, you'll at least have a nice chest to show for it.
  • #42
  • Jan 25, 2007 8:04am Jan 25, 2007 8:04am
I apologize I couldn't post last night, I had to unhook my computer, I'm in the middle of a move, and actually won't be able to post again until tonight, and the movers are literally gonna be here in three minutes, so I will keep this short and sweet.

I really thought that this would get maybe three replies, but I'm overwhelmed with the thoughtfulness and honesty of this community, it really is amazing to me. The ideas are great, I will be moving to daily charts and more long term ideas, and not get frazzled by short term squiggles...EUR USD...guess what? That was the one that blew me out, and the cable and yen were the ones that I did well with. So, that is factoring into my new written plans for sure. I'm staying away from the more exotic CAD/JPY and offbeat ones like that.

As well, I agree that a blow out is a blow out regardless of 5000 or 50,000. But it also depends on relative wealth. If you don't have a lot of money , but enough to risk to speculate, then 5000 blow out will hurt. IF you are Donald Trump, then no it won't hurt, neither will a 50K blowout...but at the end it is all about learning this great game and this is definitely the place to bounce some great ideas, one of which is getting back to basics and getting back to simple chart and price reading, getting back to candlestick trading...

Ok, doorbell is ringing, gotta go..but I'll post later tonight, if the internet is hooked up in the new place.

Take care,

THE HUN.
  • #43
  • Jan 25, 2007 8:29am Jan 25, 2007 8:29am
Quoting zamiriqbal
Dear Loser


I though, you were gonna change your name...

What Happen...
You're right, at the moment, I'm not changing it. It can affect me no more with this nick. I used it to remind myself to avoid that. I'm building up and reading and learning all over again. When I'm back, that is with a testimonial and a new username I will inform all of you who concerned and cared about me.

I thank you all for the generosity and PMs. I might not able to reply promptly, but please do know that I am picking myself up and learning, and also trying to test and come up with my own system. I know that by going through the genuine learning process, then, I would then be able to call myself, a better trader.

As Arnold said in Terminator, "I will be back, and damn sure I will!"

The Hun, don't give up. Don't you EVER GIVE UP!
  • #44
  • Jan 25, 2007 10:55am Jan 25, 2007 10:55am
Well I'm poor so £100 I add when required hurt me enough

Account is still intake but No trades so cheating really
Nothing to it, but to do it!!! Stick to the plan FOOL!!!!
  • #45
  • Jan 25, 2007 11:19am Jan 25, 2007 11:19am
you will continue to blow out many accounts .... the banks control the market and will not let u profit from it... is that simple...

until they change the rule of forex i will stay out of it...
  • #46
  • Jan 25, 2007 11:26am Jan 25, 2007 11:26am
I'm sure you already know these things, but here is what I have learned when trading.

* Trade with a system
* Write down every rule for that system and make sure your rules are not open to interpretation.
* Make sure you fully backtest your system, log it in your journal... Date/Time Entered and Exited, P/L, Drawdown, etc...
* Do not over leverage yourself and always anticipate a larger drawdown than your back tested results, I always double my largest backtested drawdown.
  • #47
  • Jan 25, 2007 2:41pm Jan 25, 2007 2:41pm
Quoting fxjournals
I'm sure you already know these things, but here is what I have learned when trading.

* Trade with a system
* Write down every rule for that system and make sure your rules are not open to interpretation.
* Make sure you fully backtest your system, log it in your journal... Date/Time Entered and Exited, P/L, Drawdown, etc...
* Do not over leverage yourself and always anticipate a larger drawdown than your back tested results, I always double my largest backtested drawdown.

  1. Consider using a good expert advisor as a second strategy.
  2. Never trade against a trend on D1 (or H4), take a position only in its direction.
  3. Write trade journal - it disciplines, you can use FF "Journal Factory".
  4. Troubles with discipline and mental chaos? Say to yourself that you'll wake at 4 o'clock am and brush you teeth - than do it. Three-four times and you'll forget about undisciplined behaviour. Force yourself to do sth every day- by baby steps, stap by step. Worked very well for me.

Good Luck!

Quidquid latine dictum sit altum viditur
  • #48
  • Jan 25, 2007 3:57pm Jan 25, 2007 3:57pm
Here is a hint at something that works for me. Buy a HUGE WHITE BOARD or two. Place just above your tarding screen. Write your rules there so you see them all the time.

Good Luck !!!!
EllisEdi Moving on to my next trade ...
  • #49
  • Jan 25, 2007 4:24pm Jan 25, 2007 4:24pm
Quoting thehun69
Well, I blew out yet another account. This one lasted longer though. The first one I managed to chew through in about two weeks, and I managed to keep this one for 5 months. At one point I actually tripled it in one month. But, alas, blown out again.

The reasons are pure and simple just the usual nonsense of overtrading and getting in wayy earlier than I know I should, that is, anticipating a trend instead of following one, "forcing" opportunities instead of having opportunities present themselves, cutting gains unbelievably short, and letting those losses fly. In other words, some of the same garbage that allowed me to blow up the first one.

I just had to vent.

I'm not looking for any form of sympathy, nor words of encouragement. I just wrote on this board to vent, pure and simple. I can't vent to my wife, or family or friends, because they wouldn't understand this game. Everyone here does.

Well, on to number three. I do know what the first change will be...WRITE MY RULES DOWN. They are simply being broken way too often. I'll come up with some more changes as I progress, but this should be a good start.

THE HUN.
I invite you to read my vision. This is not a trading plan or rules. They simply explain how I see forex trading:
http://www.forexfactory.com/showpost...6&postcount=41
  • #50
  • Jan 25, 2007 8:19pm Jan 25, 2007 8:19pm
My road to giving up the day job (which I did a few years ago) was long and paved with more potholes than I care to remember. Then I learned that less can be more. I now support myself by swing trading (average hold time 3.5 days) two pairs only (GBPUSD and GBPJPY). I use the same setup on both religiously. While it only has about a 55% win rate, the winners run for an average of almost 200 pips while the losers average about 40 pips. I make less than 250 trades a year but make a very nice living.

I've never been able to figure out how to consistently make a profit daytrading forex, but, with the above two pairs, swing trading is close to being an ATM. They both have a huge average true daily range and, when traded using a long-term tick chart (I use 2168 tick bars), move through it fairly smoothly. I avoid EUR pairs like the plague because they tend to do just the opposite.

I do daytrade a couple of index futures (again using only one setup), but the income from the forex pairs alone would support my lifestyle, which is far from spartan.

The key lessons I learned over time were:
- Don't overleverage your account (In highly leveraged markets like forex and index futures, I never put more than 4% of capital into any one trade (1% for daytrades) nor have more than 10% at work at any one time)
- Let your winners run
- Cut your losers quickly
- The setup is much less important than discipline -- there are thousands, probably tens or even hundreds of thousands of setups that will consistently make money for a disciplined trader. I know of no setup that will consistently make money for an undisciplined trader.
  • #51
  • Jan 25, 2007 8:34pm Jan 25, 2007 8:34pm
Slight correction. I meant to say I never RISK more than 4% on any one trade nor have more than 10% at RISK at any one time.

The actual % invested will thus vary with the stoploss amounts. For example, if the stoploss on a GBPUSD trade is say 90 pips (which is about my average -- each trade can be different depending on support and resistance levels), this equates to about a 90% risk for the amount traded. If the account balance is say, $100,000, than the amount traded can be no more than $4,444 (100,000*.04/.90).
  • #52
  • Jan 26, 2007 1:35am Jan 26, 2007 1:35am
Quoting scjohn
Slight correction. I meant to say I never RISK more than 4% on any one trade nor have more than 10% at RISK at any one time.

The actual % invested will thus vary with the stoploss amounts. For example, if the stoploss on a GBPUSD trade is say 90 pips (which is about my average -- each trade can be different depending on support and resistance levels), this equates to about a 90% risk for the amount traded. If the account balance is say, $100,000, than the amount traded can be no more than $4,444 (100,000*.04/.90).
Hi,

Your story inspires me - you are exactly where I aim to be within the next 5 years and it looks like we trade in a fairly similar manner - average 10% risk on 5 pairs in my case (2% a trade) with losses cut short & winners letting ride for a few hundred pips or more.

I'm always in the market but there are similarities that suggest to me I'm on the right track

Thanks for your posts here

Kind Regards
Steve
  • #53
  • Jan 26, 2007 3:57am Jan 26, 2007 3:57am
Quoting steviet
Hi,

Your story inspires me - you are exactly where I aim to be within the next 5 years and it looks like we trade in a fairly similar manner - average 10% risk on 5 pairs in my case (2% a trade) with losses cut short & winners letting ride for a few hundred pips or more.

I'm always in the market but there are similarities that suggest to me I'm on the right track

I'm actually always in the market too except for vacation times. I always take at least the entire month of August off as I've found the markets to often be very choppy then -- too many traders on vacation I guess.

I'm glad you keep your risk limited. A broker friend of mine claims that, by far, overleverage is the number one reason for failure. I have backtests that show that some setups that do wonderfully at 10% leverage will actually blow an account to zero at 30% leverage. This is due to the extreme effect of large losses -- it takes a 100% gain to offset a 50% loss. The number one rule of trading is to keep your account alive. The leverage available in forex is a double edged sword.
  • #54
  • Jan 27, 2007 8:01am Jan 27, 2007 8:01am
well 2 - 3 more trades left, before mine is blown out, ( Assuming no winners ), couldn't get a break this week, every trade I took cost me, every trade I wussed rocked typical, purely random chance but thats life sometimes.

Confidence is high, I will recover the account, I've bounced from £70 to £400 before, I thought I'd cracked it when I did that
Nothing to it, but to do it!!! Stick to the plan FOOL!!!!
  • #55
  • Jan 28, 2007 8:24am Jan 28, 2007 8:24am
Quoting Turveyd
every trade I took cost me, every trade I wussed rocked typical, purely random chance but thats life sometimes.
If it was all purely random chance, there would be no successful long-term traders, just some occasional flashes in the pan. As I know there are traders who consistently make money year in and year out, random chance is not the problem.

On any one given trade anything can happen (purely random chance). No matter how long and well a setup has been backtested and forward tested (assuming one uses backtested setups), there is no assurance that any one given trade will go in your direction.

However, if you believe the long run is purely random chance then you will indeed blow out your account soon, and any future ones you establish. The vast majority of people who trade for a living use a limited repertoire of setups that they know, usually through a combination of backtesting and then "out of sample" testing (real life experience), gives them an edge -- a pattern that tends to repeat over large numbers of trades and over time. The edge that results from a system can be either a long term winning percentage or the fact that system winning trades tend to make far more than losers. Most use these setups on a purely mechanical basis (if A then B) and never let emotion rule.

In this environment, you would not be hard on yourself for trades that lose money but you should ding yourself severely for taking trades that did not meet your strict setup criteria or for "wussing" out on trades that did, no matter what the trade result.

This is a difficult thing to come to terms with (it took me longer than I care to admit), but, until you do, trust me, failure is assured.
  • #56
  • Last Post: Jan 29, 2007 1:47pm Jan 29, 2007 1:47pm
Thanks John,

Really Bad cold at the moment, so not helping, best not to trade when your not 100%.

Only made 3 technically good trades, 30%+ of my trades are losers so just a bad run, was 1 of those weeks.

Xmas week off, turned into a few extra weeks, and hard to get back into is also a problem, keep wussing good trades, then end up forcing bad trades that cost me, but hey I realise this so will correct shortly ish!!
Nothing to it, but to do it!!! Stick to the plan FOOL!!!!
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