Anyone blown his account before? | Forex Factory

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Anyone blown his account before?

  • #1
  • First Post: Apr 7, 2009 9:37pm Apr 7, 2009 9:37pm
Anyone been thru this before? blown accounts twice and lost all savings. But of course i am still young.

My first account lasted 3 months. Doubled it after 2 months. And then one time, for 3-4 days internet connection is off, so i was fuming over missed opportunity, when internet line was back on, i quickly jump in and loss horribly in a single trade. The next day, i want to make a stab back to recover my previous losses and but instead went 50% down. And i wait for a few days 'hoping' and finally i get margin call.

It goes for 2 weeks, and i still very unhappy, so i reason the only way to back to my old self is to regain my money. So i put in last half of my savings in. My second account lasted for 1 day.

How do i ever recover? What do i need to do?
  • #2
  • Apr 7, 2009 10:17pm Apr 7, 2009 10:17pm
You need a plan that works, then you need to execute that plan.
Until you have this you are just going to continue to lose, it's that simple.
The breaking of a wave cannot explain the whole sea.
  • #3
  • Apr 7, 2009 11:49pm Apr 7, 2009 11:49pm
You have to forget about the money. Demo trade why you re-capitalise. Print out every trade you have ever placed and look at each trade. Examine your self and examine your previous trades.
History out of Mystery!!!!!!
  • #4
  • Apr 8, 2009 12:56am Apr 8, 2009 12:56am
Quoting woopypooky
Anyone been thru this before? blown accounts twice and lost all savings. But of course i am still young.

My first account lasted 3 months. Doubled it after 2 months. And then one time, for 3-4 days internet connection is off, so i was fuming over missed opportunity, when internet line was back on, i quickly jump in and loss horribly in a single trade. The next day, i want to make a stab back to recover my previous losses and but instead went 50% down. And i wait for a few days 'hoping' and finally i get margin call.

It goes for 2 weeks, and...
I have no idea what you personally need to do, it completely depends on If your willing to comit and try to really learn about the markets. First step is to stop risking real money untill you can prove you have a good trading method.

I feel like Ive come a long way in the past few years in terms of expectations and general knowledge, but I still know barely anything. It depresses me that there have been threads on the forum that I could not participate In because I just didnt understand what those involved were talking about at points.

What Im getting at is there are some very smart people on these forums, Statisticians, lecturers, programmers, and ones with more trading experience than I have experience using a toilet. And thats only on the forum.

Why do you think you can beat these people? These well educated, able and dedicated people. Im not saying you dont have a chance, Im just saying that you dont have a chance UNTILL you start to see that trading involves alot of time and hard work.
Living the adventure in my head.
  • #5
  • Apr 8, 2009 1:23am Apr 8, 2009 1:23am
GOOD LORD MAN --- are you trying to get a job as my advertising manager ?

oh yeah, on the road to discovery, I definitely blew an account thinking I was ready to take on the big boys --- learned a lot, especially to go back to the drawing boards and start re-thinking this whole thing.

mp


Quoting Leonlorenzo
I have no idea what you personally need to do, it completely depends on If your willing to comit and try to really learn about the markets. First step is to stop risking real money untill you can prove you have a good trading method.

I feel like Ive come a long way in the past few years in terms of expectations and general knowledge, but I still know barely anything. It depresses me that there have been threads on the forum that I could not participate In because I just didnt understand what those involved were talking about at points.

What...
  • #6
  • Apr 8, 2009 1:26am Apr 8, 2009 1:26am
Quoting mparker
GOOD LORD MAN --- are you trying to get a job as my advertising manager ?

mp
Ill do anything for sufficient compensation...
Living the adventure in my head.
  • #7
  • Apr 8, 2009 1:35am Apr 8, 2009 1:35am
a TRUE capitalist !!



Quoting Leonlorenzo
Ill do anything for sufficient compensation...
  • #8
  • Apr 8, 2009 2:54am Apr 8, 2009 2:54am
Quoting woopypooky
Anyone been thru this before?
Keep in mind the concept of survivorship bias. The 95% of FX traders who have blown their accounts aren't going to respond to this thread.
  • #9
  • Apr 8, 2009 3:02am Apr 8, 2009 3:02am
Quoting Trader KGB
Keep in mind the concept of survivorship bias. The 95% of FX traders who have blown their accounts aren't going to respond to this thread.
With that i completely agree Trader KGB. If you was burned and is still here your definetly a trader.
  • #10
  • Edited 4:57am Apr 8, 2009 3:46am | Edited 4:57am
Quote
Why do you think you can beat these people? These well educated, able and dedicated people. Im not saying you dont have a chance, Im just saying that you dont have a chance UNTILL you start to see that trading involves alot of time and hard work.


Its not so much a competition against "these people" .

You do the work of building your web and those who are not willing to do the work will find themselves in it.

Yes I know a rather venomous analogy, the markets do "feed".


Take care

Dale
  • #11
  • Apr 8, 2009 4:16am Apr 8, 2009 4:16am
Quoting woopypooky
Anyone been thru this before? blown accounts twice and lost all savings. But of course i am still young.

My first account lasted 3 months. Doubled it after 2 months.

How do i ever recover? What do i need to do?
Best answer I can give you is visit the James16 thread http://www.forexfactory.com/showthread.php?t=2331 & read a lot, go to the guest area of the Private forum, I don't think anyone here would disagree that this is good advice. Good luck
If it is to be - it's up to me
  • #12
  • Edited 4:55am Apr 8, 2009 4:44am | Edited 4:55am
Quoting Dale
Its not so much a competition against "these people" .

You do the work of building your web and those who are not willing to do the work will find themselve in it.

Yes I know a rather venomous analogy, the markets do "feed".


Take care

Dale
Well, who your direct competition is depends on how you trade. Your competition will actually be some'one who trades similar to you. Not that that really matters at retail buket-shop level.

EDIT: PS. This is something that winds me up about trading. We, being so small, dont have to worry at this point about finding a counterparty to our trades as the liquidity is provided by our brokers at any price the ccy-cross trades at, yet it is still so difficult to trade profitably. The obvious and only reason being lack of information or the inability to use what we do have properly.
Living the adventure in my head.
  • #13
  • Apr 8, 2009 4:54am Apr 8, 2009 4:54am
I guess you may have missed reason for my post.


Best regards

Dale
  • #14
  • Apr 8, 2009 5:06am Apr 8, 2009 5:06am
Quoting Dale
I guess you may have missed reason for my post.


Best regards

Dale
Lol, yes I did understand what you were saying, the edit was me just blurting out a frustration.

Leon
Living the adventure in my head.
  • #15
  • Apr 8, 2009 8:02am Apr 8, 2009 8:02am
Quoting woopypooky
Anyone been thru this before? blown accounts twice and lost all savings. But of course i am still young.

blew my first stock account for everything i had ---- would have done better with forex than equities, but thats the way we learn !
My first account lasted 3 months. Doubled it after 2 months. And then one time, for 3-4 days internet connection is off, so i was fuming over missed opportunity, when internet line was back on, i quickly jump in and loss horribly in a single trade. The next day, i want to make a stab back to recover my previous losses and but instead went 50% down. And i wait for a few days 'hoping' and finally i get margin call.

In retrospect, had you taken a counter trade to the losing trade, with a higher amount of pips, you could have held and added enough to your equity to handle the "wrong" trade without the margin call, BUT at the time you probably didnt even consider the thought.

It goes for 2 weeks, and i still very unhappy, so i reason the only way to back to my old self is to regain my money. So i put in last half of my savings in. My second account lasted for 1 day.

How do i ever recover? What do i need to do?

The answer is utter simplicity, but also difficult to do considering youre pouring money into the problem when the REAL problem is you havent a real clue as to how the market works !

Its time to go back to school and demo ideas till they work for you --- and DONT open a $50K demo when all you have to trade with is a few thou, cause that gives you a FALSE cushion that allows you to think youre a better trader than you are, which I think youve already proven.

you might take a look at my threads, where newbs have gone from losers to winners, and learning more every day without learning a "system", and if thats not for you, at least find a reputable "system" that works decently and open up your stop losses, which probably were responsible for more of your losses than anything else.

but whatever you do DO NOT PUT MORE MONEY INTO THE HOLE YOU SEEM INTENT ON DIGGING until you have a LOT more experience and knowledge !


enjoy and trade well

mp
  • #16
  • Edited 11:07am Apr 8, 2009 10:43am | Edited 11:07am
Quoting woopypooky
Anyone been thru this before? blown accounts twice and lost all savings. But of course i am still young.

My first account lasted 3 months. Doubled it after 2 months. And then one time, for 3-4 days internet connection is off, so i was fuming over missed opportunity, when internet line was back on, i quickly jump in and loss horribly in a single trade. The next day, i want to make a stab back to recover my previous losses and but instead went 50% down. And i wait for a few days 'hoping' and finally i get margin call.

It goes for 2 weeks, and...
If you mean how do you recover your money, I don't have a clue. Ask someone else. I haven't made a dime yet. If you mean how do you recover your composure and continue to be in trading, then perhaps my own experience and then some options on how to figure where you lost it and turn it around will help.


I've lost count of how many accounts I've lost. In forex, they were all demo for the last eight months (except for one early account and 2-3 tests that didn't work.)
That's one heck of alot of regret trading you did. You interpreted a nontrading dilemma, that of losing Internet connectivity, as having lost control for 2-3 days. After doubling your money -- which is easy to do, I did it not 45' ago ( http://i43.tinypic.com/rtp2yb.jpg )-- you felt invincible (I guess). You thought (again, I guess), I can get any amount of money I want. . Or you may say, I was consistent for two months, (my) overmargining doesn't count. Sure it does, you're reacting to the loss, not to your ability to trade. How you followed your method (mine includes high margin, while training, if you want to say I have a method) changed because of this reaction. I doubt your method or your usual ability to do it were at fault, or at least I'm discounting this possibility. As for me, I'll probably lose all my money in the next few hours, as I have in the past several hundred (yes, I'm serious) demo accounts before this one. The feeling of invincibility and then of dumbfounded dismay that one is not, drives you to trade and either to get the money you lost or learn an extra edge in trading.
I used to get horribly upset, like you said you did, about losing money, especially after, sometimes, earning alot of money or seeing that if I had followed the plan in my head then I would've earned alot of money when I only earned a little money, after which I lost that money to feel 'settled' inside. Now, a little of me does get upset at having lost yet again, only the majority feeling is that I'm learning how to deal with my losses -- actually, no, it's fear at having to return and probably lose it all, and solace that I'm not losing any real money and will have 'experienced' one chart and added it to all the other charts in my memory. Feeling regret after losing happens alot less now, since I somewhat gave up the idea that I can hold on to any money I make.

I hope telling you my related experience helps you. Avoiding more loss is also fairly reasonably easy.

Here's some approaches to stopping your continuous losses. 1. Stop trading. Take a breather. 2. Trade in pennies; or, stop trading with real money. Paper trade, demo trade, trade with a simulator. 3. Start a journal, on this site or on paper; or, find someone online who trades a method similar to yours and reports what they do regularly. Write anything pertaining to trading you want, it'll probably be fine in the journal. Seeing how you act on paper goes a long way. Someone else trading the same method is an alternative to extreme self-disclosure; try on their attitude or converse.
5. Recognize that the problem is not the computer or your method, it's your reaction to how you used them. Three approaches to recognizing any emotional problem you're having are a) http://www.forexfactory.com/showthread.php?p=1702979 b) The Cycle of Market Emotions (google it) or c) the trader's emotion cycle I'm familiar with (base, fear; next up the curve, caution; atop the curve, greed; slightly down the other side, hope. Sorry, no reference.)
I'm not too familiar with the first one; it sounds like it deals mostly with emotions felt during a loss; cycles are definitely part of losing and earning money. b) and c) versions seem based on the theory that when you are in trouble, you attach your emotions to how much you've earned or to where in the chart's actual trend (if a trend-trader) you attached your trade.
For example, you said you doubled your money in a few months. Let's say you were exhilarated. It doesn't matter too much whether or not you were, because when you began to lose alot of that money and much more, you imply you became desperate, and that's on the Cycle of Market Emotions. In fact, you may've also felt hope, since you turned to forex factory for advice; and, it's on the second version of the emotional cycle.
Emotions are only the tip of the iceberg as to what leads your errant trades; for instance, the inevitability I suggested in my own experience led me, for a time, to attach a nontrading situation I was 'down' about to a trade and to exit accepting I couldn't change that situation and thus I lost the trade accepting this. Other things you may try are finding a trading method and testing it in real trades, or ignoring your internal signal for when your own proven trading method works and then losing.

Perhaps my experience, turning from real trading for a while, and studying your emotions and similar when you won and lost will help you. Best of luck. .
  • #17
  • Apr 8, 2009 4:07pm Apr 8, 2009 4:07pm
What this guy is saying is making money... trust me! Do not get emotionally involved in losing money... you have a plan... trade it, if the market goes in the opposite direction... don't jump in, wait for your criteria to be met and trade it!

It is simple... people complicate things beyond things.

2 simple things...

1. Trading plan
2. Money Management (that also can be included as part of your trading plan)

And once you have traded it... walk away and leave it, be it a loss or a profit... let it do what it has to do... don't get excited when in profit and close it... don't get mad when it goes against you (not even stopped out) and close it early.

I day trade and this EA fits my trading style... and it works!

http://www.forexfactory.com/showthread.php?t=9553

After 2 years, or this that the other... I have gone live (after a little bit of dabbling - no major losses)

I have 4/5 losses and then the next one wipes out all my losses... there is no holy grail... it is a plan and money management.

Good luck to you all.

Regards,
Vip

Quoting Craig
You need a plan that works, then you need to execute that plan.
Until you have this you are just going to continue to lose, it's that simple.
  • #18
  • Apr 8, 2009 7:18pm Apr 8, 2009 7:18pm
Quoting woopypooky
Anyone been thru this before? blown accounts twice and lost all savings. But of course i am still young.

My first account lasted 3 months. Doubled it after 2 months. And then one time, for 3-4 days internet connection is off, so i was fuming over missed opportunity, when internet line was back on, i quickly jump in and loss horribly in a single trade. The next day, i want to make a stab back to recover my previous losses and but instead went 50% down. And i wait for a few days 'hoping' and finally i get margin call.

It goes for 2 weeks, and...
Sounds like one of the biggest mistakes one can make in the market: letting emotions take control.
  • #19
  • Apr 10, 2009 1:12pm Apr 10, 2009 1:12pm
Quoting woopypooky
What do i need to do?
Quit before you lose any more of your savings (if you have any left), and cut up your credit cards to save temptation!

I'm serious. From what you wrote in your post you have more chance of flying to the moon than consistently making any money trading.

....."Doubled it after 2 months"....."i quickly jump in and loss horribly in a single trade"...."a stab back to recover my previous losses and but instead went 50% down"....."i wait for a few days 'hoping' and finally i get margin call."...."My second account lasted for 1 day."

Come on are you serious, this is a joke right?
  • #20
  • Apr 10, 2009 2:29pm Apr 10, 2009 2:29pm
Quoting woopypooky
Anyone been thru this before? blown accounts twice and lost all savings. But of course i am still young.

My first account lasted 3 months. Doubled it after 2 months. And then one time, for 3-4 days internet connection is off, so i was fuming over missed opportunity, when internet line was back on, i quickly jump in and loss horribly in a single trade. The next day, i want to make a stab back to recover my previous losses and but instead went 50% down. And i wait for a few days 'hoping' and finally i get margin call.

It goes for 2 weeks, and...
Get yourself a trading approach that you like. Trade only what the rules say - no jumping in and out of trades or anything of that sort. Put only very few money in this account .. a lot of money will only mean less money for you to spend. When still learning there is no sense in using a lot of money.
Even more important, learn from your mistakes and get rid of the thought that you can make a million overnight. Successful trading comes from winning consistently. If you are able to do that, it doesn't matter how big your account is, it will definitely get much bigger.
And remember, fear and greed are your biggest enemies that you do not want to be involved in your trading.

Edit: as I reread your post a few other things come to my mind..

1. study the psychology of trading, I mean, really study it
2. get a clear and rule-defining trading approach that you want to use, it needs to be exact on everything (entries, stops, exits, duration of holding a trade in each case .....)
3. believe in your success, without your own trust in yourself you will never get there
4. don't use any trading signals from others in case you start to think they will help you out
5. demo trade and see how you do before you loose another account
6. if you just won't make any money after spending A LOT of time with the markets and the above hints, quit trading
The Essentials of Trading: Emotions, Risk Mgt, Price.
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