Three Losses in a Row | Page 2 | Forex Factory

Options

Go to
Permalinks
Print Thread

Similar Threads

Do you believe tight stop-losses cause losses in the long run? 76 replies

Do you believe fixed stop-losses cause losses in the long run? 16 replies

multi-row arrows 2 replies

I have 9 losses in row. Best MM ? 13 replies

Can you handle 40 losses in a row? 17 replies

Three Losses in a Row

  • #21
  • Aug 24, 2006 5:12pm Aug 24, 2006 5:12pm
Quoting PeterFM
...
Follow your rules every trade...
...
Peter
Good point Peter. You reminded me of a professional trader's words. He says that trading is not for excitement. In the end it becomes a boring routine job like any other one. The rationale behind it is that a professional trader always follows his/her rules on a daily basis. There is no room for excitement if you want to be consistently profitable.
  • #22
  • Edited 5:51pm Aug 24, 2006 5:47pm | Edited 5:51pm
Conasounga

The #1 rule is Money Management. It seems u are buying into the fallacy that your acct is too small for MM. This my friend is a fatal error on your part. If you are using a broker that will not allow u to follow proper MM because of your acct size then u need a new broker - Go to Oanda - u can trade for a penny (.01) a pip or lower.

I think if Aparsai was to think about it, it is not the money that is hurting it is the fact that he did not follwo his rules. This is what keeps me up after a bad trade, even a good trade. cause a good trade coming from not following your rules will cost u more in the long run than a bad one not following your rules.

The time to learn proper MM is not when u have a 10K acct, but when u have a $300 acct. The hardest thing to learn is that it is not about the money, its about the trade. MOney is just how u keep score.

Quoting conasounga
I've lost 60% this week, after making 96 pips last week. I didn't loose that much money, as I'm trading a mini account. The problem with starting a mini account with say 300 dollars is you can't practice proper money management. But I'm still in the game after 2 months live and I'm still learing from my mistakes.. My loses this week were from greed, not sticking to my own rules period, so I have to learn to control that part of the beast that resides in me. This is the third time I've drawn down 50% or more of my account. I will take a break, and go over my successful trades, then identify my mistakes, and approach the market again with the same conservative approach that I did when I was winning my trades. So take a small break, and try, try again.

Good luck!
In trading, there is no bullshit. You either make money or you don't.
  • #23
  • Aug 24, 2006 6:03pm Aug 24, 2006 6:03pm
Quoting mrgreen
The hardest thing to learn is that it is not about the money, its about the trade. MOney is just how u keep score.
This statement is the best I've seen in awhile. You hit the nail right on the head. Everyone should take this post and paste it to their wall in front of their trading station.
Mr. Trend
  • #24
  • Aug 24, 2006 6:57pm Aug 24, 2006 6:57pm
Quoting mrgreen
The hardest thing to learn is that it is not about the money, its about the trade. MOney is just how u keep score.
kind of similar to what turned me around...i had blown up my account 3 times from 1/2003-10/2003, then it hit me like a ton of bricks!

"DO NOT TRADE TO MAKE MONEY… TRADE TO TRADE RIGHT! OTHERWISE, YOU ARE ONLY GAMBLING… TRADERS GROW THEIR ACCOUNTS… GAMBLERS CONTINUALLY BLOW THEIR ACCOUNTS…DO YOU WANT TO BE A GAMBLER OR A TRADER? <?xml:namespace prefix = o ns = "urn:schemas-microsoft-com:office:office" /><o></o>

<o> </o>

TRADE RIGHT AND THE MONEY WILL TAKE CARE OF ITSELF…"

<o>I look at that quote every day before I start trading...</o>
[font=Times New Roman][size=3][color=#0000ff][/color][/size][/font]
  • #25
  • Aug 24, 2006 7:07pm Aug 24, 2006 7:07pm
Quoting mrmikal
You can easily learn proper money management with only $300. The key is finding a broker who trades micro-mini lots (0.10 a pip). Then we're talking the equivalent of having $3,000 in a mini account or $30,000 in a standard account.

I always recommend that people starting with small amounts need to learn proper money management from the get go. Of course we want to grow our accounts as fast as possible, but trust me if you start out with TOO LOW of an account and just decide to over leverage or over extend yourself, you will just say "no big deal, it's only $300" and gamble away. Some of you will double your accounts, and others will blow them out on a single trade...but neither of those camps will have learned a thing. Double that account using the proper < 2% risk rule and then start increasing your risk factor. Trust me, you'll find that over time you'll have learned a great deal more trying to turn $300 into $600 at 10 cents a pip than you would had you gambled $1 a pip.
I just learned something new today. Thanks, I did not know that you could get micr mini accounts. I will check into this. I though that I would have to overcome the odds and build my account. I mean that I've got the money to put into an account and trade one dollar pips with 2% risk, but when I first started trading live, I figured I would start with a small amount and build it up... That was before I learned about money management. I will check into that mrmikal. I appreciate your wisdom.
  • #26
  • Aug 24, 2006 9:35pm Aug 24, 2006 9:35pm
Quoting aparsai
Unfortunatly I'm a lone trader and have nobody to immediately be in touch with. However, I keep refering to our forum and seek for advice from good buddies like you. Thanks.
Aparsai, you can approach me anytime through FF,PM or yahoo.
I am nothing but still I welcome you.


kolachi
  • #27
  • Aug 25, 2006 8:37am Aug 25, 2006 8:37am
Quoting philmcgrew
If you have a reliable system and you have done your backtesting then you would likely find out that 3 consecutive losses are very acceptable and completely within the accepted distribution of wins and losses.

If you are troubled by 3 losses then run away from any type of trading as fast as possible.
Bingo. That is the point! You are going to lose. On every single trade, you may lose, it is possible. There is no system out there that guarantees a win every single time you go out to trade. No matter how much optimizing and back data reflitering they are doing on any of the systems you see on this board, Sidus, for example (dam over 100K of views), no system will ever be perfect. You have to walk into every trade knowing that this is how much you will win, and this is how much you will lose. If your system has been tested and shown that it is an overall winner, then you are good to go. If the losses are getting to you, then this is not the game for you. Try Yahtzee. But, if you can wrap your head around the fact that this is a LONG TERM venture, then you have to accept losses; just keep them as small as possible and you will do fine.

Take the ego and emotion out. Accept that know matter how you look at it, ANYTHING CAN HAPPEN. Do that, and the money will rain.

The Hun.
  • #28
  • Aug 26, 2006 9:53am Aug 26, 2006 9:53am
Quoting aparsai
Ten pips is roughly equivalent to 2% of my account. In most cases I enter and exit a trade in a few minutes. I also move my S/L to B/E +1 or 2 pips as soon as I get a chance to avoid losses. That's why so far 68% of my trades have been winners but some ended up with only 1 or 2 pips profit. I hope this can help.

With a 68% win rate over 50 trades you have roughly an 85% probablity of seeing 3 losses in a row.

As for not following your own rules. Well, that blows the probablities right out the door.

Probablities are your friend, I hear trends are as well.
Secret Identity: Bill Sullivan
  • #29
  • Aug 26, 2006 10:25am Aug 26, 2006 10:25am
Quoting aparsai
I lost three times in a row. I lost a total of 42 pips (2+6+34) in the last two days. I don't know what went wrong but I lost about 9% of my margin in about 48 hours.

Since I opened my latest live account about 45 days ago this is the first time that I encounter such a problem (I'm up 151 pips in total since then).

I fear to approach the market. On the other hand I want to compensate what I lost. This mixed emotion is a killer and I don't know how to deal with it.

Any ideas that could possibly help me to overcome my fear and make a wise decision?
Hello aparsai,

That can happen to anyone and does. The 34 pip loser stands out to me. The question I have for you is what time frame are you trading??? If your average winners are 25 to 40 pips like mine you shouldn't allow any trade to go 34 pips against you. If you trade a larger time frame and your winners are 100 pips then that is probably normal. I ALWAYS use what I call a catastrophic stop that I do not allow myself to overide just in case I am not thinking clearly in a bad trade. If you decide to take this recomendation make sure the size of your stop is appropriate in relation to your win percentage and average winner.

I trade intraday and the key for my money management is to have a solid entry plan very close to what I am deeming to be support or resistance. This is a tremendous mental help because I know why I took the trade and if that level fails then I have no doubts about getting out. Use good exit strategies to take a postive feeling out of the trade. Say to yourself, ya, that trade didn't go my way but I executed my stop loss strategy perfectly and preserved my capital. This keeps it all positive for me.

Other than that I say no worries. The most likely scenario is that the market conditions just didn't favor your strategy, it happens. You could probably spend some of your anxious energy looking at what the market conditions were so maybe you could identify them in the future.
Profit is where readiness meets Opportunity
  • #30
  • Aug 27, 2006 10:49am Aug 27, 2006 10:49am
Quoting xxDavidxSxx
don't worrie, 3 losses is nothin and your loss sizes are very small.

Your either starting too small of an account, or over leveraging it too. But a 9% draw down is nothing either. If your panicing on a 9% draw down your gonna have a heart attack when you hit a 50% draw down.

I suggest you get back on a demo and get used to trading your system, and get used to taking losses and do it enough to be confident that the next winning streak is just around the corner.

Befor you trade forex you must prove to yourself your system works on a demo, and realize what the max draw down is of this system. Trade the demo with the same $ ammount you plan to trade live. If you tend to experiance 50% or more draw down then rethink your method. If your breaking your methods rules will be a big factor too. Are you adhearing to the rules like you should? And rething your money management system.

Get to where you can grow a demo like its nothing. And once you can do this consistantly you'll still struggle in real trades at first because the feel is different. emotionaly.

If you cann't or haven't doubled or trippled a demo a few times then your definatly not ready.

Dave
Thanks Dave. I'll keep all this in mind. BTW, I've already tested the system on demo and live. I didn't follow the system on my last trade. That's why I lost money.
  • #31
  • Aug 27, 2006 10:50am Aug 27, 2006 10:50am
Quoting conasounga
I've lost 60% this week, after making 96 pips last week. I didn't loose that much money, as I'm trading a mini account. The problem with starting a mini account with say 300 dollars is you can't practice proper money management. But I'm still in the game after 2 months live and I'm still learing from my mistakes.. My loses this week were from greed, not sticking to my own rules period, so I have to learn to control that part of the beast that resides in me. This is the third time I've drawn down 50% or more of my account. I will take a break, and go over my successful trades, then identify my mistakes, and approach the market again with the same conservative approach that I did when I was winning my trades. So take a small break, and try, try again.

Good luck!
I wish you good luck too.
  • #32
  • Aug 27, 2006 10:55am Aug 27, 2006 10:55am
Quoting TheBreeze
...
TRADE RIGHT AND THE MONEY WILL TAKE CARE OF ITSELF…"

<?xml:namespace prefix = o ns = "urn:schemas-microsoft-com:office:office" /><o>...</o>
I added this quote to my signature, if you don't mind.
  • #33
  • Aug 27, 2006 10:58am Aug 27, 2006 10:58am
Quoting conasounga
I just learned something new today. Thanks, I did not know that you could get micr mini accounts. I will check into this. I though that I would have to overcome the odds and build my account. I mean that I've got the money to put into an account and trade one dollar pips with 2% risk, but when I first started trading live, I figured I would start with a small amount and build it up... That was before I learned about money management. I will check into that mrmikal. I appreciate your wisdom.
As far as I know, IBFX offers micro accounts. I don't know if they are a reliable broker or not but at least you can try their micro account for a whild. (www.interbankfx.com).
  • #34
  • Aug 27, 2006 11:10am Aug 27, 2006 11:10am
Quoting thehun
Bingo. That is the point! You are going to lose. On every single trade, you may lose, it is possible. There is no system out there that guarantees a win every single time you go out to trade. No matter how much optimizing and back data reflitering they are doing on any of the systems you see on this board, Sidus, for example (dam over 100K of views), no system will ever be perfect. You have to walk into every trade knowing that this is how much you will win, and this is how much you will lose. If your system has been tested and shown that it is an overall winner, then you are good to go. If the losses are getting to you, then this is not the game for you. Try Yahtzee. But, if you can wrap your head around the fact that this is a LONG TERM venture, then you have to accept losses; just keep them as small as possible and you will do fine.

Take the ego and emotion out. Accept that know matter how you look at it, ANYTHING CAN HAPPEN. Do that, and the money will rain.

The Hun.
The Hun,

In my opinion you are absolutely right. Thanks. Make sure that I keep all those points in mind.
  • #35
  • Aug 27, 2006 11:12am Aug 27, 2006 11:12am
Quoting aparsai
As far as I know, IBFX offers micro accounts. I don't know if they are a reliable broker or not but at least you can try their micro account for a whild. (www.interbankfx.com).
Thanks aparsai, Good luck to you also. I wonder if FXsol does micro mini accounts? I've good things about Onanda as well. I took a break the rest of the week. Now it's time to find a different broker.
  • #36
  • Aug 27, 2006 11:13am Aug 27, 2006 11:13am
Quoting FXopportunist
Hello aparsai,

That can happen to anyone and does. The 34 pip loser stands out to me. The question I have for you is what time frame are you trading??? If your average winners are 25 to 40 pips like mine you shouldn't allow any trade to go 34 pips against you. If you trade a larger time frame and your winners are 100 pips then that is probably normal. I ALWAYS use what I call a catastrophic stop that I do not allow myself to overide just in case I am not thinking clearly in a bad trade. If you decide to take this recomendation make sure the size of your stop is appropriate in relation to your win percentage and average winner.

I trade intraday and the key for my money management is to have a solid entry plan very close to what I am deeming to be support or resistance. This is a tremendous mental help because I know why I took the trade and if that level fails then I have no doubts about getting out. Use good exit strategies to take a postive feeling out of the trade. Say to yourself, ya, that trade didn't go my way but I executed my stop loss strategy perfectly and preserved my capital. This keeps it all positive for me.

Other than that I say no worries. The most likely scenario is that the market conditions just didn't favor your strategy, it happens. You could probably spend some of your anxious energy looking at what the market conditions were so maybe you could identify them in the future.
Thanks for sharing these with me. Actually my S/L in most cases doesn't exceed 10 -15 points. However, as I mentioned earlier, I didn't follow my own rules of money management and even my system.
  • #37
  • Last Post: Aug 27, 2006 11:14am Aug 27, 2006 11:14am
Quoting Captain Piptastic
With a 68% win rate over 50 trades you have roughly an 85% probablity of seeing 3 losses in a row.

As for not following your own rules. Well, that blows the probablities right out the door.

Probablities are your friend, I hear trends are as well.
0 traders viewing now