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How I blew up my account in 3 weeks

  • #21
  • Dec 3, 2007 8:55am Dec 3, 2007 8:55am
Hi Branco, interesting thread. I'm sorry about your loss, but I have to say that your story feels like a tutorial unconvetional lesson for anybody approaching FX. Unfortunately, you kind of had most of the accidents that an educated beginner will have. I hope you will shake it out and get back all the pips that you gave to the market and more.
My 2 cent advice is to set up some written down rules, like: am I following my sYstem, my MM, am I out of major news event, away from holidays, are support or resistance on the way of my trade, is the RR of this trade good enough, do I have a reasonable stop? etc etc etc
Then follow them with discipline and patience.
A few trade per week/month that respect all of your rules can be enough for a nice amount of pips! And you will notice that your losses are often breaking at least one of them.
  • #22
  • Dec 3, 2007 9:01am Dec 3, 2007 9:01am
Thanks.

I'm thinking of coming back. Right now I am at the stage of developing my own system. Well, actually I already developed 3 of them but the first two had too large drawdowns for me to think I will be able to weather them out.

I am currently backtesting the 3rd one and hoping that this is the one. Hope that in January I am ready to go back in.
  • #23
  • Dec 3, 2007 9:12am Dec 3, 2007 9:12am
Although it is great to have an optimistic, never give up attitude it is better to be critical of your own trading as you have shown. How else can you truly understand what you have done right and wrong and how to correct things.

Also only read "1k to 10k in a week" topics if you want a few good laughs.
  • #24
  • Dec 3, 2007 10:10am Dec 3, 2007 10:10am
Good post. Reminds me exactly my first 3 weeks, when thinking back, all I could say was: "what just happened?". I would also add one common mistake of beginners that you probably did. I know I did it, it's called - overtrading. So as you said, don't take so tight stops + keep the profits running .

For me the the school-money was only fiew hundred bucks. Now it has been 2 full months and the second month (november) I came back from the bottom about 25%. So 500 EUR is quite good to start crawling back! Don't look how much money you make - it's the pips that matter. Try not the be profitable at once. For me it took several weeks to get to the zero level (meaning profits=losses).

So don't be greedy - take it as learning process and the longer your account preserves, the more you can learn I read somewhere, that if in one year you have the same amount of money on your account, as you started - you are doing very good (better than those 90% of beginners perhaps). So no rush and don't give up.
  • #25
  • Dec 3, 2007 7:06pm Dec 3, 2007 7:06pm
Nasty Branco, very nasty. From the way you're writing though, it does sound like you've learned every lesson that needs to be learned, admittedly in a way you'd rather not have experienced...

Best of luck in the future. And just tell the wife you spent 3k on a remote training course. It's kind of true
  • #26
  • Dec 15, 2007 8:21am Dec 15, 2007 8:21am
Hi there Branco,

I've made many of the same mistakes that you have! I've learnt my lessons (they were painful) so your not the only one who has made those mistakes.

It looks like you have isolated the areas that you went wrong (as did i) and have learnt from those mistakes. Thats a good positive step forward.

Think of the 3K you lost not as a potential vacation, but as a cost of "education" that was paid by you. It wasn't a complete "loss" as you were educated by it and were given the opportunity to learn from your mistakes.

The only think that you can do now is
(FIRSTLY, dont trade with real money): Focus on...

1. Money management - Only risk a small percentage on each trade
2. Stop losses - Always use stop losses
3. Have an approximate R v R ratio
4. Have a clear set of rules (a system) that you follow and not change every couple of trades.
5. When you have that, DEMO DEMO DEMO DEMO and DEMO trade.

I may have left out a few details, but remember that the main goal of trading is to first PROTECT WHAT YOU HAVE!!! (I neglected that in my earlier days, LOL)

Good luck buddy.
  • #27
  • Dec 18, 2007 10:05am Dec 18, 2007 10:05am
Quoting phil3526
Hi there Branco,

I've made many of the same mistakes that you have! I've learnt my lessons (they were painful) so your not the only one who has made those mistakes.

It looks like you have isolated the areas that you went wrong (as did i) and have learnt from those mistakes. Thats a good positive step forward.

Think of the 3K you lost not as a potential vacation, but as a cost of "education" that was paid by you. It wasn't a complete "loss" as you were educated by it and were given the opportunity to learn from your mistakes.

The only think that you can do now is
(FIRSTLY, dont trade with real money): Focus on...

1. Money management - Only risk a small percentage on each trade
2. Stop losses - Always use stop losses
3. Have an approximate R v R ratio
4. Have a clear set of rules (a system) that you follow and not change every couple of trades.
5. When you have that, DEMO DEMO DEMO DEMO and DEMO trade.

I may have left out a few details, but remember that the main goal of trading is to first PROTECT WHAT YOU HAVE!!! (I neglected that in my earlier days, LOL)

Good luck buddy.
  • #28
  • Dec 27, 2007 9:53am Dec 27, 2007 9:53am
Well, I started trading again and I started my trading journal here at FF.

So far it is not going very well. 2 positive trades out of 5 and the losses are bigger than the wins which is exactly the opposite of what I should be aiming. However I feel I am more disciplined and I am confident that this has been mostly due to bad luck.

So, wish me luck everyone
  • #29
  • Jan 1, 2008 11:32pm Jan 1, 2008 11:32pm
Quoting branco
Thanks for your thoughts. I think I will try again with better MM rules, especially the one about the 2% maximum loss.

Still... I probably need a few days to rethink the whole thing and decide if I can stomach another 3k burned.
Well.. i am a new forex trader myself. I am 24 years old and got a good chunk of sign on bonus and what not when i started my job. I invested that in the stock market and became a day trader. I guess everyone of us have that in our genes. Anyways, beat the market by 12% in my first year. Loved it.

Someone told me to go into fx. I was doing ok. 1 month into the deal i just went nuts. i dont know why. One day, i moved a TON of money, (60k US dollars), and leveraged it 1:150. I was up 30 pips. I made 30k in 4 hours. And then it started falling, i kept holding, and before you know it, i was negative, erh, a good chunk of change.

But yeah.. i am glad my current job pays a good amount.. but it hurts to think about it.

I am not going to lie, i am mad at the market, but at myself too for being so greedy.

I'll come back though..
  • #30
  • Last Post: Jun 11, 2008 1:53am Jun 11, 2008 1:53am
http://www.forexfactory.com/showthre...32#post2048732
If I Go Broke Trying Then I Will die happy.
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