Can anyone help me plz?

hi everyone, very first time in forex and on a forum. i got stuck in live account as the situation is this i have 3 long and 3 shorts trade of GBSUSD. now there is a loss of roughly $16,000 in my live account . i spent all of my deposits in this account now just $600 left in variation margin. and have to pay interest every day market closing. i feel sorry that i open and run this account without any education or training but just dependent on inexperienced friend who actually forced me for forex trading.
is there any chance to come out of this situation because whether the market rate goes up or down this loss remains same. i dont know what to play long or short.,as it could take months to learn or become a good trader. few guys on YAHOO ANSWAR suggested me to close all positions and the account as well which really disheart me and upset me thats why i prefered to take help of this forum.
can anyone guide me please. i will be so thankful to you

Yeah sorry to say It’ll be really hard to get your money back. Best thing is to keep on studying forex, the problem here was that you were risking too much of your account on a trade, you’d might want to only risk 1-2% of your account on a trade.

Also another huge problem was you need to study forex and get more experienced at trading before you approach live money.

Wow, i’m so sorry to hear this. I will tell you this is one of the more heartwrenching posts i’ve seen in such a forum… and my answer will provide you no consolation, but may help you to make the next decision a more informed one.

Essentially, that 16K in unrealized loss is gone. Unrealized loss IS a loss. Period.

To put it bluntly, you and whoever talked you into this, did a half a$$ed job in this “trade”. To have any long term chance of sustained success, all trades have 3 requirements: A reason for entry, a reasonable place to take profits, and a reasonable place to take losses.

It seems you (and this other person) really only had one (maybe two) parts of that plan. You were completely lacking a reasonable place to take losses. No single trade should ever cost you more than 3% of your account, period. And I know of no one ever who would willing risk more than 5% on a single trade…and been able to make a career out of trading.

You essentially risked over 90% on one idea, while not knowing the first thing about how to make trading work successfully. (the most important of which, is to have a plan that guarantees you have enough money left to take trades in the future!)

One universal rule that is true among all the worlds best traders and investors is: no matter how “sure” a thing seems to be, never risk more than your willing to lose, and never lose so much that it can’t be quickly recovered, because no one has a crystal ball, and in the markets especially, the best traders suffer losses ALL THE TIME.

The trick is to keep losses very small, and let winners run and run. I personally do this full time, and lose about 35 -40% of the time! That’s a lot of failure, and I’m a professional! And i’ll tell you, every trade I put I am tempted to think “I’m so right, this has to happen such-and-such way…nothing else makes sense!” But I also tell myself even louder “AND IF I’M WRONG, I’m going to close my trade at X price, because I am not willing to risk more than 1% of my entire account on this idea”

At this point, there really is nothing anyone could tell you that would help you except what you’ve already been told. Close all positions, and close your account. Don’t come back until you have proven yourself successful with a much smaller amount of money, for a much longer period of time (say, profit every month for 6 months, working with less than $1000)

As someone who has lost several accounts in the past due to my ignorance of one aspect of trading or another, I do feel your pain… intensely in fact.

Successful Trading is not just about having an informed opinion and betting money on it. It is really about running a business.

I don’t want to beat a dead horse here, but to give you an analogy of your situation would be like someone who knows how to cook a hamburger, but has no business experience at all, deciding to open up a restaurant

This person may love cooking in their kitchen, and may be very good at it, but running a business successfully requires so much more, including: payroll, taxation, lease agreements, contracts, employees, insurance, accounting, merchandising, warehouse managment, marketing, raising capital, business partners, liabilities, customer service, basic non-kitchen daily operations, business development aspects…and so much more

Then…if this person who likes to cook but does not understand the other aspects of running a business finds themselves fully mortgaged, payroll overdue, food spoiling or not selling, customers complaining, the city revoking their business license, and a previous manager is suing them for unlawful termination… there really is very little anyone could advise them to do except to say “close down the business, file bankruptcy, and learn what mistakes not to make the next time, if you choose to have a next time”

My friend, you are in the same position. This particular race, for you right now, is over.

Now, if you choose to run again, that is your decision. If you have a real desire to trade for a living, then I encourage you (as hard as it is) to chalk this up to experience, keep learning, and one day you will likely get what you want.

If you only did this because someone told you could “make a lotta money together!!!” (as I suspect is the case), then you should also chalk this up to experience, and never again let someone talk you into an investment or business that you know very little about.

My heart goes out to you. There are things you can do in the future to make money in the markets, but there is no way to recover the missing $16,000. Time to relax, let go, and move on.

Jay

thnks for ur time given on detailed answer. its really good advice. its hard time but i will learn

where are your trades located - you only have 6 of them, so it should be easy to type out. If they aren’t at extremes it may turn around.

golden…i think he’s net flat right now. he has 3 long, and 3 short. in other words, they are as good as closed, with $600 left in his account. to change his balance, he would have to exit one of the longs, or one of the shorts, and then have the market go his way, and then exit another long or short.

In other words, he’d have to make a successful trade. Given the amount he’s down on only 3 lots (remember…he’s “correct” on the other 3…they were just bought/sold after a large loss was already sittting there, too little, to late), i’d say he’d have to make on HELLUVA successful trade with only a $600 margin of error left to work with.

and i dont know about you…but i’m hardpressed log in 500+ pip winning trades.

but, if i’m wrong here pipaction, please let us know. if you somehow got into this stuff within the last 200 - 300 pips, there might be something to work with…

Jay

i guess the best is to do some damage control… one last trade… that trade is to close 1 or 2 actives trades long or short and pray the market move your way and don’t get a margin call…

Yunny, no offense here, but your suggestion is basically akin to “i guess the best thing to do is damage control… why don’t you pull that 600 out and dump it on Black at the local roulette table”

This person is wrong on direction, can’t take a loss, and is in a world of hurt…and seemingly may not even be the brains behind this operation.

Without the ability to get a greater than 50% chance of correctly predicting market direction, they are simply gambling.

“Pray the market move your way” Not really a viable trading strategy is it? I know what happened last time I prayed for market moves… I lost more than I should have.

The market moves up, or down, over any given period of time. that’s a 50/50 bet, not including the interest he is paying every day, or the transaction costs he will incur when closing the position.

So, pray or no pray, he is paying interest, plus a closing transaction cost…and only has a 50% chance of being right. So, that’s actually less than 50% with those costs.

Probably close to 49% chance to make 600 before he margins out. But then he would have to be willing and able to cut his loss there, using discipline to execute. which would require some sorta plan…which is what has been missing the entire time here.

and something tells me the time he spends agonizing over the result of this wouldn’t nearly be as enjoyable as a trip to the casino, and with comps…he could actually get better odds of making money than he has now.

No, without a doubt, the best thing to do is cut his losses…now. $600 is $600. At least he can buy a new TV or pay a bill with that. Maybe even take a vacation to vegas. better odds there than where he is now.

Jay

Take the 600 and buy a gun, shoot your friend that forced you to trade LOL

hi every one,
replying a bit late cause i finished job late night yesterday. first of all thanks to all for discussing my trade issue and one friend ‘GOLDEN’ asked for details of the trades which given me a hope. Before giving the details i want to tell one thing that to save this account i can deposit further like$1000. so that it could give some further margin to trade confidently. but issue is there what should i trade and what not…
i will really appreciate your ideas about tackling the account or about the trade strategy. and promise to learn the forex first. OPEN POSITION and ACCOUNT SUMMERY last received on Friday closing as under:

OPEN POSITIONS
Product Open Date B/S Lots Price Closing Interest Floating P/L
GBPUSD 22 Sep 2011 Sell 1 1.5396 1.6133 -2.67 -7,370.00
GBPUSD 06 Oct 2011 Sell 1 1.5379 1.6133 -2.67 -7,540.00
GBPUSD 27 Oct 2011 Sell 1 1.6001 1.6133 -2.78 -1,320.00
GBPUSD 27 Oct 2011 Buy 1 1.6024 1.6128 -0.56 1,040.00
GBPUSD 27 Oct 2011 Buy 1 1.6078 1.6128 -0.56 500.00
GBPUSD 27 Oct 2011 Buy 1 1.6097 1.6128 -0.56 310.00

Floating P/L: -14,380.00
Effective Margin: 2,053.42
Necessary Margin: 1,500.00
Variation Margin: 553.42

That’s a really poor situation you got yourself into there. If it was me I would be heartbroken, $16.000 is close to half my current annual.

What friends makes you risk that amount of money on something that takes years to get good at?

My tips for the future:

  • Never trade with your friends or their money. Don’t **** where you eat.
  • Never risk more than you can afford to lose. Once you are playing with the money that was meant for that overdue bill, you already lost.

If you really wish to pursue Forex Trading, I wish you luck. But remember, it will be essential for you to forget this loss. You have to let it go completely. If you chase your losses, you will only make them bigger.

I don’t belive he forced him. It was his decision to trade based on a friends advice. So it’s his mistake not that of his friend.

@pipAction:

Facts are obvious:

  1. You don’t know what you are doing
  2. You are “married” to your trades
  3. You risked already 95% or so of your account size

Stop trading right NOW! Throwing more money in will very likely just increase your loss. In other words: Don’t throw good money after the bad!

Listen to eremarkets advice. NOW!

There is nobody in this world who can give you a 100% advice where the price will go. Frankly, most advices have a reliability less than 50%. That’s why successful traders risk only a small fraction of the account and not the whole equity like you did.

You asked for an answer and you got it. Now just follow! Not following eremarkets advice will just be another mistake.

If you closed all of your trades, you will have a free mind and can then look what to do with the money left. You would win time and best of all your risk of the money left would shring to zero percent risk. :slight_smile:

If you would gave me that 16K i would have taken u around the world with 10 beautifull woman tons of booze and drugs :slight_smile: MAN 16K lol max i had in my hands maby 3-4k

Well, I think the general consensus is that the relief rally in the GBP and fall in USD will soon be over. Don’t know when of course otherwise I would be rich. Those shorts are costing you 1500pips, and your longs are worth 190 pips… And it looks like you have 20 pips margin to pick the top if you can save it. If you can put in an extra $1000 that will be an extra 30 pips leeway to pick the top. 50 pips to pick the top is very tricky. The best way if you were to risk it all would be wait for a beautiful shooting star formation with a massive rejection of high price to close and then close out your longs once it has retraced a bit. Its massively risky though, and you are more likely to lose it all rather than win anything back.

Ok dog, here is my 2 pence worth, your loosing 14k on the two shorts of GBP USD, the us dollar is in the toilet at the moment and that’s why you are loosing your money, be patient man, I predict when Europe finds out in a few weeks that their debt reduction scheme is not so solid we are going to see the USD shoot up and the USD shoot back up. Wait it out, after christmas we will see big movements, some way europe could fall as low as near parity with the us dollar, if your margin precent is getting too small close some of your smaller trades and take the hit, but hold onto the big ones with all your might, what goes up MUST come down.

The best way if you were to risk it all would be wait for a beautiful shooting star formation with a massive rejection of high price to close and then close out your longs once it has retraced a bit. Its massively risky though, and you are more likely to lose it all rather than win anything back.[/QUOTE]
hi Golden, thnks fr ur suggestions. but i could not get what u said in this quoted above. can u explain in very simple words what should i do next please? thanks

[QUOTE=Prophecy;289682]Ok dog, here is my 2 pence worth, your loosing 14k on the two shorts of GBP USD, the us dollar is in the toilet at the moment and that’s why you are loosing your money, be patient man, I predict when Europe finds out in a few weeks that their debt reduction scheme is not so solid we are going to see the USD shoot up and the USD shoot back up. Wait it out, after christmas we will see big movements, some way europe could fall as low as near parity with the us dollar, if your margin precent is getting too small close some of your smaller trades and take the hit, but hold onto the big ones with all your might, what goes up MUST come down.[/QUOTE
this is a good idea prophecy. i can wait up to 3 to 4 months may be dollar gets stronger but can u tell me what moment i should settle these long trades coz when the prices will go down the long one would start to give loss same like short one at the moment.
thanks

Are you serious? You don’t even know what a simple candlestick formation is and you are trading $16 000?

Hey Pip Action

Kk here is what happened, When you sold the USD against the Pound, it was really low, (had you bought, you could be in the money lol!)

I predict it will fall back to what it was around Christmas. If I was you, when you break even (hopefully), Get out of the trade at that point, It wont go down much farther if at all when your break even. If you want to play it safe, get out of the trade when you are only 1-2k down.

Here is your best bet, Christmas season is coming, and its big business in America, people are going to spend a **** load on gifts and other stuff.

In the UK. there is a small recession, they are also going to buy gifts but its not as big a deal over there so they probably arnt going to buy too much, plus they arnt doing so well so they will probably buy even less.

In america regardless of how well they are doing they will go crazy and buy out the shops, this is how americans roll. This is turn will boost the US dollar against the pound.

Right now, you are at the worst its going to to get, I expect in November its going to get better for you, and keep getting better till you break even in December.

You are going through hell right now, keep on going, cause its only better from here. Just watch that margin, your broker will close it on you if it gets too tight, do what you can to reduce the margin requirements, like closing the small ones to reduce the deposit requirements.

When you break even, send me a message and ill tell you what you can do to get your money back. If this all works out. Something ****ty could go wrong like an american bank closes and hurts the US even more, the US is your friend right now, it has to get stronger for you to get your money back. (although with all this euro debt **** going on, I predict its actually Euro banks that are going to be closing, just a guess.)

Best of luck bro.

Quick reply


I’m looking at the charts. The second yellow line is where you want the currency to go.

The two I have drawn are the divergence.

From just this, I would say the GBP is going to get stronger before it gets weaker, buttt we are gambling on Christmas making a big impact, and Greece/Italy screwing up the Euro (which in turn hurts the pound)

The signs are bad, but fortune favours the bold, don’t give up hope. Keep that margin floating till it comes down.