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bad position - quit now or wait ?

  • #1
  • First Post: Mar 27, 2009 3:51pm Mar 27, 2009 3:51pm
Hello everyone

i'm kind of new to forex and made a beginner mistake, played live and this is what happened:

i assumed a position in the wrong direction and missed my chance to exit, while the euro went doowwnnnn

Should i close my positions now and accept the loss

or

wait for next week rebound and then close it - wouldn't this be risky since the euro might go further down ?

Please give advice
Thank you!
  • #2
  • Mar 27, 2009 4:02pm Mar 27, 2009 4:02pm
Accept your loss, you have no MM. Me... I am in 2 minds, and a matter of getting in at the right price... it looks good to drop, though you might want to move to a lower time frame, 4 hour and wait for a pull back that comes near the close of friday and then sell.

Quoting thegman
Hello everyone

i'm kind of new to forex and made a beginner mistake, played live and this is what happened:

i assumed a position in the wrong direction and missed my chance to exit, while the euro went doowwnnnn

Should i close my positions now and accept the loss

or

wait for next week rebound and then close it - wouldn't this be risky since the euro might go further down ?

Please give advice
Thank you!
  • #3
  • Mar 27, 2009 4:34pm Mar 27, 2009 4:34pm
was the casino closed?
  • #4
  • Mar 27, 2009 4:42pm Mar 27, 2009 4:42pm
Quoting thegman
Hello everyone

i'm kind of new to forex and made a beginner mistake, played live and this is what happened:

i assumed a position in the wrong direction and missed my chance to exit, while the euro went doowwnnnn

Should i close my positions now and accept the loss

or

wait for next week rebound and then close it - wouldn't this be risky since the euro might go further down ?

Please give advice
Thank you!
First things First.
Know the times in which have a choice.
Call them now & tell them you made a mistake & would like to change it. I'm sure they will listen.

Oooops.. too late but that's not your fault. May be they closed early this week just to Getcha... Bugg#rs...

C'mon G'Man This is not a Get Rich Quick Scheme, although, to some it appears so.

You can't just lay a bet and go to sleep not even knowing what you actually bet.
Get Real or Get.
  • #5
  • Mar 27, 2009 5:10pm Mar 27, 2009 5:10pm
Some times biting the bullet when you are late is wrong.
Without being able to guarantee you anything EUR/USD will probably react to the 1.3430 levels at least before facing some additional supply.
However if it does go below the previous bottom even by 15 or more pips I cannot tell you how low it can fall before a meaningful reaction sets in so you should exit in that case and take the losses.

Btw...Take small losses.Burn that inside your mind.SMALL LOSSES.
The GrandMaster of the Forex Market.
  • #6
  • Mar 27, 2009 5:24pm Mar 27, 2009 5:24pm
People tend to hold on to losing trades too long, and exit winning trades too early.
Unless you have strong indications the price will move back to break-even or even profit levels, I personally recommend closing your position.
At some point you need to recognize you made a mistake, take the loss and learn from what you did wrong.
The nail that sticks out gets hammered back in
  • #7
  • Mar 27, 2009 8:48pm Mar 27, 2009 8:48pm
it appears that EU should retrace to the 1.3386 point before continuing its death spiral to the center of the world, which will be 2982 and then the real bottom comes later.

this is on the 4 hour chart, so be patient

enjoy and trade well

mp
  • #8
  • Mar 27, 2009 8:49pm Mar 27, 2009 8:49pm
thank you for all your replies

unfortunately i got to know your forums too late but at least not TOO LATE.

quote: People tend to hold on to losing trades too long, and exit winning trades too early

so true ! at least beginners ?

The small loss part, i actually slept over the right moment to exit, the least i was trying to do was gamble, though i'm up for a 3 month demo test, learn and formulate a real strategy before going live.

great site !
  • #9
  • Mar 27, 2009 9:27pm Mar 27, 2009 9:27pm
while one of the last things a newbie learns, knowing where to take profit and entering your tp point when you enter your trade allows you to get as much sleep as you wish.

we teach this over on my thread, which is ultimately nothing but a support and resistance teaching situation. Once you know where to place these points, you can enter as many trades as you wish, setting your tp at each and every resistance point.

Forex is rather simple, although not easy, but it can be learned like anything else.

enjoy and trade well

mp


Quoting thegman
thank you for all your replies

unfortunately i got to know your forums too late but at least not TOO LATE.

quote: People tend to hold on to losing trades too long, and exit winning trades too early

so true ! at least beginners ?

The small loss part, i actually slept over the right moment to exit, the least i was trying to do was gamble, though i'm up for a 3 month demo test, learn and formulate a real strategy before going live.

great site !
  • #10
  • Mar 28, 2009 5:13am Mar 28, 2009 5:13am
Quoting mparker
while one of the last things a newbie learns, knowing where to take profit and entering your tp point when you enter your trade allows you to get as much sleep as you wish.

we teach this over on my thread, which is ultimately nothing but a support and resistance teaching situation. Once you know where to place these points, you can enter as many trades as you wish, setting your tp at each and every resistance point.

Forex is rather simple, although not easy, but it can be learned like anything else.

enjoy and trade well

mp

i am checking it out, thanks
  • #11
  • Mar 28, 2009 6:17am Mar 28, 2009 6:17am
thegman, you should have closed the trade as soon as you realized it was a mistake. Don't let the loss to grow any bigger, whenever you're uncomfortable with a position, close it immediately! You'll always get another chance in the next trade.

I've been in your position several times, and looking back, I can safely say it would have been better to close the trade immediately, rather to wait until the market reverses. The problem with such a trade, that psychologically you can't accept the loss since the trade shouldn't happen in the first place, so you wait and wait, until it's too late.

Close the trade and move on.
Good luck.
  • #12
  • Mar 28, 2009 11:05am Mar 28, 2009 11:05am
biz0101 so true what u say! It is difficult to let go even though u realize later u should have done it.


btw i see many people using acronyms, is there a list where i can find a "translation" ?
  • #13
  • Mar 28, 2009 1:24pm Mar 28, 2009 1:24pm
Dude...

I don't mean to be rude, but stop trading...

Go to this site and read up

http://www.babypips.com/

Then go to this section:

http://www.forexfactory.com/forumdisplay.php?f=56

Read, read and read - also try and understand it.



Good luck!


Quoting thegman
biz0101 so true what u say! It is difficult to let go even though u realize later u should have done it.


btw i see many people using acronyms, is there a list where i can find a "translation" ?
  • #14
  • Mar 28, 2009 6:36pm Mar 28, 2009 6:36pm
down below i gave you the probable retrace price that shall be reached on the H4 chart, which will take a little bit of time before completing, but if you wish to be safe, use a familiar old method --- exit your trade, let it drop for a few hours and then place a BUY STOP at the point you exited.

unless the broker can spike up to your buy, you should be fine until the currency reverses, hits your buy stop and starts moving in the correct direction for you to take profit by observing the "barrys support and resistance" indicator, plus the bollinger bands used simply as a FINAL resistance point for your tp.

Lectures on what you did wrong, while true, are not exactly what you wish to hear at this moment, so either trust what i said originally about the retrace coming, or try this method which will at least RETURN what you lost in time !

as always, if you had been reading my thread at "350 pips daily and all the ice cream you can eat", you probably would have avoided the problem cause we teach you how to SET A TP that you can then simply walk away from (or do anything else that may come up) and you would have been smiling and not reaching out as you are doing now.

Setting a tp point is one of the hardest things for a newb --- it was for me many a year ago, but it is also one of the most necessary skills to avoid slippage and that rare situation when nature calls.

cmon over -- we feed newbs and not eat them !

enjoy and trade well

mp
  • #15
  • Last Post: Mar 30, 2009 5:34am Mar 30, 2009 5:34am
i had exited the trade, looks like that was the best option

i'm currently studying and learning what you are teaching mparker, thanks !
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