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Limitations - to prevent blowing up accounts

  • #1
  • First Post: Oct 18, 2011 4:37pm Oct 18, 2011 4:37pm
I was sitting in my bed last night and I was thinking that a good way to prevent loses in forex is to find a way to limit or eliminate a few things from the game. Greed and fear.

Many will come and say that is a good thing to be greedy and its probably true but what do you do when this greed takes over and you start playing big lots. What is the solution when you get panicked and you start get in the game with more and more orders in order to save the others. I bet many of you went through this nightmare. I ve been there too...and I still am but with a difference. Now I m on demo. And I m still greedy, and I m still freaking out when I see orders turning against me.

So. About the limitation idea. What If we could limit the lot size and the lots opened simultaneously with a simple password. Would this thing make people stop blowing accounts. I m sure it would stop me blowing up the demo accounts and I m sure it would help me start controlling my emotions but is there anything like this for mt4? Is it possible to ask a broker to do this for an account?

Share ur thoughts about this. I have the feeling that I wont be the only one that would use such a tool.


Cheers
  • #2
  • Oct 19, 2011 8:04am Oct 19, 2011 8:04am
when one is trying to stay away from junk foods, does he/she really have to put a lock in his refrigerator/pantry, to prevent him/her from eating more junk food?
no.
he/she just have to be disciplined not to eat a lot of the junk foods in the ref/pantry. or better yet, just avoid buying junk food.

u dont need a software to put a limitation on yourself.
use your own supercomputer --- your brain. practice sensibleness.
  • #3
  • Oct 19, 2011 8:22am Oct 19, 2011 8:22am
You are just like the ones who say why don't you quit smoking ? it's easy. You just have to want this and it should be easy.

Only a small % of people can quit smoking or gambling or using crack with no help at all. Yeah I know, you will say it's no comparison but I put them all in the same bucket because this is how I am.

This beeing said let's find a method to my solution. Many will say evrika.

Cheers
  • #4
  • Oct 19, 2011 8:32am Oct 19, 2011 8:32am
if you have no self-control then don't bother trading. simple. none of this pass-the-buck bullshit.

best way to quit smoking or drinking or drugs is to never start.... take some personal responsibility and stop looking at ways to stay in something you should never have been in.

another stupid thread by stupid people.
Congratulations ScalaFX for coming out of the closet!
  • #5
  • Oct 19, 2011 8:40am Oct 19, 2011 8:40am
So if I smoke I shouldn't try quit. Right ?

Your logic is simple. Life is not.
  • #6
  • Oct 19, 2011 8:47am Oct 19, 2011 8:47am
the simplest way to not burn yourself is to not play with fire.

the simplest way to not get std's is to not sleep around.

the simplest way to not get shot is to not play with guns.

the simplest way to not sound like a dumbass is to not start stupid threads that try to justify passing what should be personal responsibility onto a third party who has no reason, ever, to be responsible for your actions.

you are the reason nanny-states exist. pathetic.
Congratulations ScalaFX for coming out of the closet!
  • #7
  • Oct 19, 2011 8:55am Oct 19, 2011 8:55am
I find you amusing. You simply can't accept there are other type of personalities, therefore, if I don't fall under your rules I'm stupid.

Not everything is black and white and I think your should quit post here since your advice is obvious but it's not what I'm looking for.
  • #8
  • Oct 19, 2011 9:00am Oct 19, 2011 9:00am
Quoting fahren
You are just like the ones who say why don't you quit smoking ? it's easy. You just have to want this and it should be easy.
...
i value my life.
if i were a smoker & learned it's bad for my health & it can give me lung cancer etc, ....SH*T, i would definitely stop smoking. the risk is too much, it's just not worth it for me.

like i said, try to be sensible.
  • #9
  • Oct 19, 2011 9:20am Oct 19, 2011 9:20am
The best way to not over trade or not to trade with to large a size is easy, have your wife site at your side while you trade. That fear would be much greater then your trade size.

Habbits can be broken but only if one is determine to break them, I am a former 4+ pack a day, two handed chain smoker, Camel non filtered. I found a motivation to quit when I figured that the cost of smoking was almost equal to my rent at the time. Wouldn't you stop if your rent would be paid for the rest of your life?

If you really want to trade then your the only one that can make it happen, no SoftWare Patch will help you.

Keit
Trader Keit ... Methods Of A Dirt Road Mad Man....
  • #10
  • Oct 19, 2011 9:30am Oct 19, 2011 9:30am
It's an entire philosophy behind this and there is no sense to debate. I wanted to quit smoking and I did it with pills because arguments like money or health didn't count.

The wife method is and idea but not all of us have a wife and I was thinking to find a method to help anyone to find him self in my situation.... or maybe I'm the only one ?
  • #11
  • Oct 19, 2011 9:41am Oct 19, 2011 9:41am
Quoting fahren
It's an entire philosophy behind this and there is no sense to debate. I wanted to quit smoking and I did it with pills because arguments like money or health didn't count.

The wife method is and idea but not all of us have a wife and I was thinking to find a method to help anyone to find him self in my situation.... or maybe I'm the only one ?

You are coming arround. Each one of us is different and each must find his own method, motivation to do what is not easy. You found pills to quit smoking I looked at the dollars others will DIE to quit. You must find your own PILL to break your habit, theres no one method that corrects all.

You must enter your own dungeon and fight your own dragons.



Keit
Trader Keit ... Methods Of A Dirt Road Mad Man....
  • #12
  • Oct 19, 2011 11:25am Oct 19, 2011 11:25am
Quoting fahren
I was sitting in my bed last night and I was thinking that a good way to prevent loses in forex is to find a way to limit or eliminate a few things from the game. Greed and fear.
Fahren, have you try EFT ?? maybe it can helps you

Best Regards,

Jin Shan
- 888 Horse Power - Fast Momentum Speed Run Towards VICTORY
  • #13
  • Edited Oct 20, 2011 9:59am Oct 19, 2011 11:38am | Edited Oct 20, 2011 9:59am
deleted
Trade responsiblypatience is the key/Swing trader
  • #14
  • Oct 19, 2011 11:41am Oct 19, 2011 11:41am
IMHO, you have asked the wrong question, hence this thread has gone off on the wrong tangent.

What you really need to learn, especially while on demo, is LEARNING how to correctly POSITION SIZE each and every trade when you place it.

Once you have learned this behavior, it becomes a habit, and your trading is DISCIPLINED, that is, you will not be "still freaking out" - I guarantee it!

To do this properly, before each trade, you need to know: Entry and Stop Loss.

If you have a system / method that provides about 40% winners, with a 2 to 1 risk reward, then you will observe first hand that, 1) you do not need to use large lots to make money, 2) each trade will only be 1% or 2% of your account, therefore your trading becomes calm and relaxed.

Search FF for information on TRADING IN THE ZONE by Mark Douglas, read it, believe it, trade it !!!

It takes a lot for me to IGNORE you, but you can try.
  • #15
  • Oct 19, 2011 11:56am Oct 19, 2011 11:56am
Quoting Erebus
What you really need to learn, especially while on demo, is LEARNING how to correctly POSITION SIZE each and every trade when you place it.

Once you have learned this behavior, it becomes a habit, and your trading is DISCIPLINED, that is, you will not be "still freaking out" - I guarantee it!

To do this properly, before each trade, you need to know: Entry and Stop Loss.
I agree with you Erebus,

but fahren is having a problem in controling his emotions... thats it, he need somethings to overcome his emotions

Jin Shan
- 888 Horse Power - Fast Momentum Speed Run Towards VICTORY
  • #16
  • Oct 19, 2011 12:05pm Oct 19, 2011 12:05pm
Use this formulae:

Number of lots = [trading capital] x [percent to risk]/100 / [pips between entry and stop loss] / [dollars per pip]

Example:

You have $1,000 and want to risk 1% per trade using a 500pip SL (or 50 pips if your platform doesn't use pipettes), if stopped out and that's they key...to use a stop loss!!

($1,000 x 1%) / 100 = 10

10 / 500 = 0.02

Dollars per pip can vary between 50 cents to $1 for example, depending on pair, so let's take average = 75 cents...

0.02 / 0.75 = 0.027 lots or 0.03 rounded up

hth
Politics is the womb in which war develops.
  • #17
  • Oct 19, 2011 12:10pm Oct 19, 2011 12:10pm
Quoting du jin shan
I agree with you Erebus,

but fahren is having a problem in controling his emotions... thats it, he need somethings to overcome his emotions

Jin Shan
Unless I am mistaken, he only becomes "emotional" while trading large lots, hence the advice to learn proper position sizing; control the risk, this will eliminate the emotion, worked for me anyway

So, the key is to be in control from the start, have a PLAN, stick to the plan, once you realize there is no need for larger lot sizes, you are on the way !!
It takes a lot for me to IGNORE you, but you can try.
  • #18
  • Oct 19, 2011 12:15pm Oct 19, 2011 12:15pm
Quoting FiatFap
Use this formulae:

Number of lots = [trading capital] x [percent to risk]/100 / [pips between entry and stop loss] / [dollars per pip]

Example:

You have $1,000 and want to risk 1% per trade using a 500pip SL (or 50 pips if your platform doesn't use pipettes), if stopped out and that's they key...to use a stop loss!!

($1,000 x 1%) / 100 = 10

10 / 500 = 0.02

Dollars per pip can vary between 50 cents to $1 for example, depending on pair, so let's take average = 75 cents...

0.02 / 0.75 = 0.027 lots or 0.03 rounded up

hth...
It is called a POSITION SIZE CALCULATOR


really comes into play while trading non-USD pairs
It takes a lot for me to IGNORE you, but you can try.
  • #19
  • Oct 19, 2011 4:54pm Oct 19, 2011 4:54pm
[quote=CockeyedCowboy;5053955]The best way to not over trade or not to trade with to large a size is easy, have your wife site at your side while you trade. That fear would be much greater then your trade size.

Habbits can be broken but only if one is determine to break them, I am a former 4+ pack a day, two handed chain smoker, Camel non filtered. I found a motivation to quit when I figured that the cost of smoking was almost equal to my rent at the time. Wouldn't you stop if your rent would be paid for the rest of your life?

If you really want to trade then your the only one that can make it happen, no SoftWare Patch will help you.

Wow, I've heard of 3 packs a day smokers, but never 4. Congrats.
  • #20
  • Oct 19, 2011 6:07pm Oct 19, 2011 6:07pm
Quoting Incrediblle
i trade for a US hedge fund company and they have this facility,as soon as 2% of balance is lost in a day they autometically disable the software untill the new day starts.

i want some thing similar for my personal account
LOL, yah, right, YOU work for a hedge fund! Id love to see some performance reports because not more than 6 months ago you were begging here for a 20 pip a day system, remember? And now you magically have a job at a hedge fund.
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