Why Can't I Trade?! | Forex Factory

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Why Can't I Trade?!

  • #1
  • First Post: Jun 3, 2015 12:29pm Jun 3, 2015 12:29pm
So I funded another account a few weeks back and have already lost 62.22% since May 13th. I've probably lost in the region of £3k since 2011 and still I make the same mistake time and time again. That mistake is MM and position size and of course the dreaded rage trading.

I see myself as being a good analyst of price but always allow a full stop loss to be hit and never let a winner run.

It actually hurts writing this as I can see the issues I make and vow to never break them again but then if I suffer a loss I load up and gone.

I know these are my issues and only I can resolve them but I am going to start to journal my trading to see if that helps but also would like some constructive criticism from profitable traders if they see something glaringly obvious I am doing wrong going forward. I would really appreciate some input if you can spare the time to help a fellow trader achieve their goals.

I will not be going back to demo as I still have a whopping £400 in the account and so I think I just need to learn to reduce my position size which is around 1-3 lots and start to trade between 0.10 & 0.50. This way I still feel the emotion of real funds and hopefully build some stricter rules in to my approach.

I will use support and resistance and I like to sell retracements and buy dips in the direction of the 4hr trend taking entries of 1hr or 15m charts. I like double tops and bottoms and areas of resting stops again in line with the overall trend.

I will trade Eur/Usd and Gbp/Usd pairs mainly but will also look at Usd/Jpy and some other pairs from time to time.

Please do not post obvious flaws I have mentioned above that are straight from the text book, the theory side I know but have the trouble in practical side and I don;t mean that to sound obnoxious as its not as I really want the help and support a forum offers but it would be great if I post analysis and trades and the feedback can come from that? Again not wanting to be rude but there are many noobs or non-profitable traders who offer textbook advice but don't actually follow through with it and so it sounds condescending - for that reason you wont see me offering anything similar to others on the forum although I will comment on their charts and where "I" think price may be headed.

As said above £400 means I will look to use 3% per trade so really I shouldn;t be starting above 0.40 on my positions.

I really do welcome your inputs and help so don;t be shy - let me have it - I don;t want to be downandout - I want to be a winner!!
  • #2
  • Jun 3, 2015 1:34pm Jun 3, 2015 1:34pm
To me your attitude sounds all wrong. You want to be a winner, but you are being selective about the type of help that you want. You say that you know all the obvious stuff, but it is probably the obvious stuff that you are getting wrong. How successful were you on demo? If you were successful, but you cannot replicate that success on a live account, then it is the very most obvious thing that is letting you down - your psychology. If you were not successful on demo, then you need to stop wasting your money this very day and go back to demo until you are. Do you see where I'm coming from. Traders here, myself included, do not have the time or inclination to start analysing your charts for you - that must be your job. I wish you well.
  • #3
  • Jun 3, 2015 2:25pm Jun 3, 2015 2:25pm
Do demo for a little while. See how it works out. Environment change can be helpful. With effect of live money gone, something may cross your mind. May be it will happen as you go back to live.
  • #4
  • Jun 3, 2015 3:43pm Jun 3, 2015 3:43pm
Quoting cat
To me your attitude sounds all wrong. You want to be a winner, but you are being selective about the type of help that you want. You say that you know all the obvious stuff, but it is probably the obvious stuff that you are getting wrong. How successful were you on demo? If you were successful, but you cannot replicate that success on a live account, then it is the very most obvious thing that is letting you down - your psychology. If you were not successful on demo, then you need to stop wasting your money this very day and go back to demo until...
Thanks for your input cat but as my post states I am not looking for anyone to analyse my charts for trade signals but more as I post my analysis to offer any feedback of what I may be looking at and offering a different perspective.

Sorry if it comes across wrong but what I was trying to avoid was a thread whereby everyone stops along and says "position size" and "money management" is the issue. The purpose of the thread is to journal my trading so I ensure I keep my MM and position sizing in check.

To answer the demo question I had over 6 months on two separate accounts as profitable either side of a live account so I know it is my physiology as I mentioned n the original thread opener.

So if I can be clear, I don't want trade signals as I want to analyse and trade for myself but whilst I think I am a good analyst I was hoping that as others stop by they may offer some alternative perspectives or "food for thought" in the way I am looking at the markets and how I may improve on entries and exits.

Hope that makes sense and good wishes to you also.
  • #5
  • Jun 3, 2015 3:47pm Jun 3, 2015 3:47pm
Quoting grin
Do demo for a little while. See how it works out. Environment change can be helpful. With effect of live money gone, something may cross your mind. May be it will happen as you go back to live.
Thanks grin - I see where you are coming from there, no hard earned cash does clear the mind somewhat.

If this account goes bump - which I am determined it won't then I would be straight back to demo for another 6 months as I did the first time the account popped.
  • #6
  • Jun 3, 2015 4:32pm Jun 3, 2015 4:32pm
I will not be going back to demo as I still have a whopping 400 in the account and so I think I just need to learn to reduce my position size which is around 1-3 lots and start to trade between 0.10 & 0.50. This way I still feel the emotion of real funds and hopefully build some stricter rules in to my approach.

1) Go to 1 lot only
2) Write down your rules and strategy
3) Follow your rules and strategy no matter how painful.
4) Trade what you see not what you think.

Now for the painful and fun part.... It's what I call the REWIRE. Trading is 90% mental and 10% method. it is why so many fail..they believe it the other way around
90% method and 10% mental. If that were the case there would be a whole lot of people making all kinds of money. All the systems, algo's, methods would be working.... Simply not the case !!!
Start a Trade Log. Here is the KEY.. You are going to REWIRE your thinking via the Trade Log.
Here's how: On every trade.. !!!
1) Why you are taking the trade.
2) What you are feeling before you took the trade
3) Write down your entry, stop loss and target profit and the reason for these decisions.
4) Once in the trade write down what you are feeling about your decisions. Be specific. The more specific the better!
5) As the trade progresses ( no matter what happens ) write down your thoughts.. Your fear, anxiety, happiness, joy, whatever.. Write it down!!!
6) Your exit..your thoughts at that moment.
7) NOW>>>>Review the trade via the Trade Log and Charts. Make a copy of the chart and mark it up with info contained in the Trade Log. Do a complete review of that trade via the log. You will now see how you think when you are live in a trade and how you think when you are not. The beauty is you will have a visual representation of what you did and thought to look at. That physical process (20/20) will allow you to see.

Here is what will happen over time.
You will begin to see pattens within your trading. Why you do certain things at this moment.. and not do certain things at given moment.
Humans are patterned orientated. Markets are created by human patterns ( we see it over and over )
What you will see eventually is where and when you make the right move.... and where and when you make the wrong move.
You will to see your own patterns emerge as they relate to your method and the market.. You will begin to see where you need to change your thought process * REWIRE *..
The way I think today is radically different from the way I thought when I lost 10's of thousands of $$$ in the market many years ago.
You can have the best method in the world ( and there are a lot out there ) But if you mental side is handicapped you will NEVER succeed.

You must stick with the Trade Log.. Everything that happens, everything your thinking goes on the trade log.. You will amazed, surprised, enlightened...

NOTE: This may take 6 months, 9 months, 1 year. Do not be in a hurry. You need to see enough the know what to change. Much of the change will take place in such a way that you will not notice. But if you look back 6-8 months from now via the Trade Log... You will see the changes !!!

Good luck

TSD
  • #7
  • Edited 5:53pm Jun 3, 2015 5:14pm | Edited 5:53pm
Quoting downandout
So I funded another account a few weeks back and have already lost 62.22% since May 13th. I've probably lost in the region of 3k since 2011 and still I make the same mistake time and time again. That mistake is MM and position size and of course the dreaded rage trading. I see myself as being a good analyst of price but always allow a full stop loss to be hit and never let a winner run. It actually hurts writing this as I can see the issues I make and vow to never break them again but then if I suffer a loss I load up and gone. I know these...
This is not a mistake.
What if I told you no one can do anything about it ?
There is no "MM" to consider, no position size that can help in any way, and "rage" trading is actually a good thing.
Using a stop loss does not work and not using one does not work.
and any king of analysis does not work, psychology, keeping a journal, paying a "guru", buying books or system, paying for training, or learning for free, writing your own indicators or automated system, nothing like that works, has ever worked or will ever work over time
If you win or lose it has nothing to do with any of the above.
It's the paradox of "the right side of the chart"
How do you solve the paradox?
Since there is nothing on the right side of the chart, why should you hold on to something that does not exist ?
the imagined outcome (of the trade) is the something that you put in, and yet you put it over nothing.
You imagine something where there is nothing. Now how silly is that ? (:
  • #8
  • Jun 3, 2015 5:21pm Jun 3, 2015 5:21pm
You need to lower your size to $0.10 a trade to get a lot of experience with a little amount of money. Increase to $0.20, then to $0.50 and so on once you become comfortable and start making good trades consistently.

If you are using a ratio for risk to reward then you might want to change that ratio.
I do not agree that you should have a 50 pip stop loss if you have a take profit of 100.
Some currencies are alot more volatile and that type of risk to reward will simply not work.
Open up your stop loss more.
Do you get stopped out to quickly just to see your take profit hit later?
  • #9
  • Jun 4, 2015 12:38am Jun 4, 2015 12:38am
@downandout

1) See what the major trends.
2) Looking for an opportunity when the markets run like the major trends.
3) Follow your rules.

indicator told you what the market has been doing before.

KISS -- Keep It Simple Stupid.
  • #10
  • Jun 4, 2015 2:52am Jun 4, 2015 2:52am
Start trading 1 minute charts , small size , only eur/usd and gbp/usd. many opportunities , small losses , risk 1:1.U will see u get improvement.
  • #11
  • Jun 4, 2015 4:53am Jun 4, 2015 4:53am
One thing which will definitely help you is to be certain of what your target and your risk in a trade is, then it totally makes the psychological aspect of trading much easier. What I mean by this is, if you have a stop loss of 20 Pips and a target of 40 pips, you know exactly what your maximum loss and max profit at that time is.
  • #12
  • Jun 4, 2015 6:06am Jun 4, 2015 6:06am
Quoting downandout
{quote} Thanks for your input cat but as my post states I am not looking for anyone to analyse my charts for trade signals but more as I post my analysis to offer any feedback of what I may be looking at and offering a different perspective. Sorry if it comes across wrong but what I was trying to avoid was a thread whereby everyone stops along and says "position size" and "money management" is the issue. The purpose of the thread is to journal my trading so I ensure I keep my MM and position sizing in check. To answer the demo question I had over...
I'd be more than happy to have a look at a few chart shots showing entries etc, but I'd have to look at them on my charts before I'd be able to give you any constructive feedback. If you want to pm me, then I could look at anything as time allows. Meanwhile, you could look at a couple of my threads which will give you some idea of what my charts look like and how I trade. You'll find them on my page. The one I've been adding stuff to most recently is Cat's whiskers, you might find something useful there.
  • #13
  • Jun 4, 2015 12:22pm Jun 4, 2015 12:22pm
Quoting TraderinSD
I will not be going back to demo as I still have a whopping 400 in the account and so I think I just need to learn to reduce my position size which is around 1-3 lots and start to trade between 0.10 & 0.50. This way I still feel the emotion of real funds and hopefully build some stricter rules in to my approach. 1) Go to 1 lot only 2) Write down your rules and strategy 3) Follow your rules and strategy no matter how painful. 4) Trade what you see not what you think. Now for the painful and fun part.... It's what I call the REWIRE. Trading...
Thanks for taking the time to write this TraderinSD. I have been out and bought the diary and notepad and will start to put this to practice as I'm sure it will help to internalise the feelings and hopefully break down the consistency in the type of trades I take.
  • #14
  • Jun 4, 2015 12:29pm Jun 4, 2015 12:29pm
Quoting jayjay050
You need to lower your size to $0.10 a trade to get a lot of experience with a little amount of money. Increase to $0.20, then to $0.50 and so on once you become comfortable and start making good trades consistently. If you are using a ratio for risk to reward then you might want to change that ratio. I do not agree that you should have a 50 pip stop loss if you have a take profit of 100. Some currencies are alot more volatile and that type of risk to reward will simply not work. Open up your stop loss more. Do you get stopped out to quickly just...
Yes agree, position size is going to change and only increase equity as the growth allows once I have defined my plan and SL and TP objectives. Typically I am a risk averse trader and sometimes strangle my winners by moving the SL too aggressive getting stopped out on the first retracement and because of this I re-enter at a worse price which then leads to the physiological breakdown.

Greed is the reason my winners come back and stop me out as I always don't want to miss the move so I think I need to start with a 15-30 pips SL and 30-45 TP and see how that goes for me too as looking at a lot my historical trades they always have <20pip drawn-down and move 30+ pips on many occasions showing trade management is an issue.
  • #15
  • Jun 4, 2015 12:33pm Jun 4, 2015 12:33pm
Thanks Mingary, mraf20, Laurentziu2, winrunner01 & ReyesWhite for your comments too.
  • #16
  • Jun 4, 2015 12:34pm Jun 4, 2015 12:34pm
Quoting cat
{quote} I'd be more than happy to have a look at a few chart shots showing entries etc, but I'd have to look at them on my charts before I'd be able to give you any constructive feedback. If you want to pm me, then I could look at anything as time allows. Meanwhile, you could look at a couple of my threads which will give you some idea of what my charts look like and how I trade. You'll find them on my page. The one I've been adding stuff to most recently is Cat's whiskers, you might find something useful there.
Thanks cat - I will certainly stop by your thread, appreciate the invite
  • #17
  • Jun 4, 2015 1:56pm Jun 4, 2015 1:56pm
Hi man,

am not sure if I can apply for helping contest, as facked up my last account during exams . But now its making for rent...so ok (is still a pain in mind i see those red numbers though). Why am writing this, is because of those goals you need to write in Tradelog (Btw, Traderin is right, Tradelog is a must). Is very hard to run some compounding system and never fail, in order to gain what you have lost. So screw that and choose achievable target. Also choose max leverage of account. For example I am using max 30, and those are only cases when I load for scalps. Point is when trade facks up, you gotta be able to enter same size. Am not sure if this is the answer you were looking for, just trying to help, as I feel for you. Am myself analyst. I always know where the market is going ...but not always trade..as already lost quite some during my starts (am very adrenaline guy). Now I know Mr. Market can screw me over anytime, so I gotta have deep pockets. There are just so many options every day you dont need to rush. Can wait for charts to align, choose achievable target and position size, MM (use Excel), write it down... and thats all.

GL, Tom
"I know one thing, that I know nothing." Sokrates
  • #18
  • Jun 4, 2015 2:10pm Jun 4, 2015 2:10pm
Quoting Tom_D_Trader
Hi man, am not sure if I can apply for helping contest, as facked up my last account during exams . But now its making for rent...so ok (is still a pain in mind i see those red numbers though). Why am writing this, is because of those goals you need to write in Tradelog (Btw, Traderin is right, Tradelog is a must). Is very hard to run some compounding system and never fail, in order to gain what you have...
Thanks Tom, Rules and strategy going in over the weekend and then re-start Monday as have banned myself for the rest of this week. I'm confident I will get there in the coming months especially with the help support and advice from this here forum. Cheers.
  • #19
  • Jun 4, 2015 2:18pm Jun 4, 2015 2:18pm
Quoting TraderinSD
..Now for the painful and fun part.... It's what I call the REWIRE..write a TradeLog
Nicely structured practical plan. Thanks.

Downandout,

when reviewing your trading, your tradelog & results you might welcome some calming & relaxing "tool" that helps you deal with emotions, be it rage, frustration, grief or whatever.

It's handy to learn how to let the emotions flow through your body when they come up while still owning the game. Also helps with spotting when the emotions arise and are about to cloud your thinking by observing whether you are relaxed or rather contractred which is a sign of stress going on.

More in my thread: http://www.forexfactory.com/showthread.php?t=530903
Markets wispers, just tune in.
  • #20
  • Jun 4, 2015 2:21pm Jun 4, 2015 2:21pm
I believe you need better risk management. You can be a very good trader when it comes to analyzing charts and being spot on.
Timing your entry is critical coz that can widen or reduce your stop loss risk.

Anyway, here is my advice to you below:

1. Only risk 2-3% of your account size. In your case that is £8 to £12.
2. Based on that risk, you can calculate what lot size to use depending on the margin of the Risk/Stop Loss.
Small SL margin will give a higher lot size whereas a high SL margin will give a lower lot size. [SL - Stop Loss]
3. Enter trades where your stop loss projection versus your profit projection gives a risk:reward ratio of 1:3 or more eg. 1:4; 1:5 etc but nothing less
This allows you to still make a profit even if you get 3 out of 10 trades losing 7.

I think this is good risk management. Remember that preservation of capital and/or profit is priority for any successful trader.
Keep that in mind and know that you cannot trade if your account is wiped out. As long as you still have capital, you are still in the game.

Goodluck,
Koni
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