If you are expecting to lose the vast majority of your bank, at what stage do you expect not to lose, and what would have changed in your trading strategy and plans to bring about that change. Please ask a trusted colleague (preferably one who is not interested in Forex) to give you their honest opinion of what you have stated here. Whether you are a young guy with £3K to spend, or £300, or £300 million, there is just no logic in your statement whatsoever. I will try to explain in the hope you can reset your current mindset.
So I start a new venture. I don’t really know how this venture works, but I do know that millions of people participate in it 24x5.5 (or in the case of cryptocurrencies 24x7). I also know that the historical failure rate is over 99%. (Note I have used my own definition of failure rate that means the capital invested AND the time invested has a minimum expectation of returning 5% per year on capital at an internal hourly cost of £50 per hour invested).
I join Babypips forum because I have heard there are some smart people on that forum who can guide me in my venture and minimize the mistakes I make in my journey.
The vast majority of members tell me to practice on a paper trading account before I make mistakes on a live account with real money, but that does not float my boat. I would rather learn to lose real money because I am impatient. Lesson #1 - learn to be patient.
I understand the Psychology thing but I have had little experience either way in knowing how a trader feels when he doubles his funds or loses 80% of his funds. Forum members tell me to be cautious and trade on paper first. That does not suit my style. Lesson #2 - learn to be disciplined. If you prefer to learn losing real money on a live account, is your own mindset telling you that you HAVE to lose money before learning how to make money? Patience, discipline, both are needed.
You have the third requirement - Initiative. It takes 10 times the effort to make £2K profit than it does to make £2K loss. A true trading plan should never take your portfolio down by 10% (at the extreme, 20%). Think about this in a realistic scenario. You would not be handling a £2K trading account to make a living out of it. You would be responsible for a £200K trading account, whether your own funds or a PROP trading company’s funds. If you manage 20% per year as an early trader you will be in the severe minority. And you would only be able to spend 1/2 of that, which is not enough for even a young single to live off these days.
I’ve provided a link to a podcast on ATR. Enjoy.