just to start off, I don’t view myself as a beginner as I have been learning Forex and using demo accounts on and off for a few years now, however I have just started with my first live account.
I finally made the jump because I had found a system that was really working for me and I was able to make 7-10%/day returns on my small account consistently just using trends, support/resistance, and price action.
As soon as I have opened my live account, with same broker that my demo was on, I have lost 7 of my first 8 trades. I am being more careful and precise about my entries now because it is real money, but it seems that every trade has gone against me. I am using the exact same strategy I was prior on demo accounts.
Has anyone had an experience like that and do you have any advice? By no means am I chasing, I am not trading smaller positions just to get back in the groove, but it’s very frustrating because I thought I had finally made some strides and was ready to try live.
This highlights the difference between demo and live trading.
Sure, so the strategy worked for weeks 1, 2 and 3 while the market was doing X.
Now, you’re in weeks 4, 5, and 6 and the market is doing Y.
Literally everyone who makes the jump from demo to live trading goes through this. It’s part of the learning process and developmental path in determining what type of trader you are.
Keep pushing forward- win some, lose some. Learn how your emotions impact your decision making and keep going until you can’t go anymore. Read everything and never stop learning.
You’re literally asking for advice when you’re at an inflection point where there is a lesson to learn. The advice is right in front of you
It was around two months with this specific system, i don’t know exactly how many trades but probably averaged 10 a week. Winning percentage was probably 55-60% but with risk management the losses didn’t hurt much at all. The maximum losing streak was two trades.
Awesome, this is good to hear. I’m managing my money and using very small positions now till I can get it figured out so i’m not worried about the money, but good to know I will soon figure it out and be on my way!
Using this method is usually very subjective. How did you backtest? Because it subjective I can only give generalised advice. It could be normal variance or that the market has changed so what was working isn’t now. The only way yo find out is to keep trading the same way for 2 months.
The other way is to journal and review the trades on the weekend would you take those same trades again? Did they meet your criteria? If so, carry on.
yes if you look back your demo “career” you would have experienced the same but obviously now the intensity and psychology different, next step is how you relate to them losses
Working on the same style of trading for a month or so can give you an answer to this. Sometimes, strategies work well for long and give accurate results as per your expectations. If you make losses through this - that is time to change your strategy and try some new ones.
Read more on personal development and psychology related material to deal with the emotions that are now present in your trading. From your question alone its quite evident that it steps from frustration and panic which can all be mitigated through proper self awareness and understanding the market. Its all a game of probailities really and the losing run you’re on could be just a lure of probabilities. Just focus on exexuting your system as best as you can provided that the system is profitable and you will reap the rewards long term
Please note that there is a difference between a demo and live account; with a demo account, there are less emotions whereas as with a live account the emotions tend to take the centre stage. I have been trading for quite a long time and I have experienced that as well. Few things to take note of: the size of your account, your lot size and your stop losses play a major role; if you put your stop losses too close then they get hit too soon hence it is important to use small lot size.
Personally, I would say that , its good that it has happen to you right away in your real account trading rather than later stage. Understand that Demo + Physiological + discipline = Real account trading.
Just review your trades and maintain journal out of these for at least next 6 months , write down each and every mistake that your making and review the progress regularly and see if you are overcoming from the initial mistakes that you are making.
Dont worry about losing streak , it will teach you a lot, just try to stay in the game ,
Remember Forex is not a short term game , look at this as Long term game and the skills you learn will be there for rest of your life. Keep going ,you will get hold of it soon.
