How much Loss is normal?

Beginner Questions
1

Hi! I think we all know that not everyone can be successful in forex. All of us lose when starting.

How much do you guys think is normal to lose?
I mean, for me 1k is normal but 20k is too much.
I’m just asking this bec I think newbs like me should also know when to quit.
for me “know when to quit” is better advice than the most popular “dont quit” “never give up”. In forex if you dont quit when youre losing, u can lose ur life lol.

For me if i cant still do consistent profit and lose 10k-20k. Ill know that forex is not for me. :slight_smile:
but i also think that few dollars wont work, most brokers doesnt give same leverage with small capital.

2

How much is too much depends on you and how much you can afford to lose before it impacts your life. If you say 1k is ok, then that’s how much you should use. But the most important thing is to become consistent on a demo before you risk that much.

3

the thing is, you can ALWAYS trade the same way whether you have 100 bucks or 100,000 bucks, because there are plenty of brokers at your disposal that would allow for you to do that. So the question is, if you are not good at forex, why would you start out with 10-20k, instead of 1k? The goal in starting out is to learn the ropes and get better, NOT “make a profit”

4

Agreed with jwlee7ucla, and also I am adding this…
Why you are going to trade real money(if you were really investing)instead of practicing a lot? You can blow 100 demo accounts just by learning. Learn how to survive,why think losses?

5

I see. My broker doesnt offer x5 x10 on 100 dollar. In small capital i need more pips or high leverage to be satisfied with my profit. Its easy to profit with big capital because i can reach my daily profit with just few pips and not using high leverage.

6

If you are trying to be “satisfied with your profit” with small amounts of capital, you are just treating forex like a casino. Either put in more money, or go home. And even if you put in more money, if you suck at trading, you are just going to lose all your money anyways. In this business you have to do your homework to get paid, theres no easy path.

7

Demo is different. it doesnt affect my emotions. I can earn 50k a day in demo.

I know the "trade money that you can afford to lose"
some people can afford millions but i think its not normal. Rich businessman knows when business needs to stop.

Its just like this. 4-5yrs in highschool is enough in our country. 10-20 isnt normal.

8

Then trade live. The answers right in front of you. Will you cry if you lose $10? $100? $1000?

10

It’s more important to concentrate on making pips and not money. The pip value can always be increased so worry about making consistent pips

12

I think I should make my question clear. My bad lol

Is ther widely accepted amount of money that forex newbs normally lose before they learn or accept that forex is not for him.
Ex. We would all agree that 100usd is normal, most if not all lose 100.

Like the 2% of capital thingy its widely accepted.

14

I see. How much capital do you think is enough or reasonable if i want to earn 1k monthly?

The reason why i asked how much loss is normal because i wanna know if im starting to turn into addict gambler lol I wanna control it if im losing more than the majority of traders lol.

15

Show us how you earn 50k a day consistently on demo on a 100k account then with 1-2% risk. I highly doubt you can.

16

I didnt say i use 2% in demo. Thats why i said i can earn 50k in a day. I dont care about demo money thats why i said its different.

17

Akeame, your practicing wrong,

If your objective, is to throw a NFL football 45 yards in the air, would you practice with anything other then a Officail NFL football?

IF you plan to start with $500, then Practice with that amount.

and Dont wait for you to run the demo in the ground before you fix it.

I opened about 400 demo accounts, because, as soon as I lost 10%, I started over again.

Losing is NOT OK. Practice not to lose, Practice in a setting as close to being in the real game as you can. Same Leverage, same balance, same lot size, as if you just deposited real money.

IF your losing, you need to re-evalute your stance and strat, and make adjustments ASAP. Dont wait to lose consistantly, 1 loss, means something is wrong. Yeah, I said, 1 stink loss.

You need to realize Risk, your in it to win it, not lose it.

Great profits to you

18

50-100k. Because at your level (newbie) trying to attain that level of profit monthly on a small capital is gambling, whether you like it or not. And I stopped answering because I got annoyed by the way you are treating demo like a game. Its there for you to PRACTICE and use the same as a REAL account, not for you to just click buttons and win “50k a day.” Read this again.

"Akeame, your practicing wrong,

If your objective, is to throw a NFL football 45 yards in the air, would you practice with anything other then a Officail NFL football?

IF you plan to start with $500, then Practice with that amount.

and Dont wait for you to run the demo in the ground before you fix it.

I opened about 400 demo accounts, because, as soon as I lost 10%, I started over again.

Losing is NOT OK. Practice not to lose, Practice in a setting as close to being in the real game as you can. Same Leverage, same balance, same lot size, as if you just deposited real money.

IF your losing, you need to re-evalute your stance and strat, and make adjustments ASAP. Dont wait to lose consistantly, 1 loss, means something is wrong. Yeah, I said, 1 stink loss.

You need to realize Risk, your in it to win it, not lose it.

Great profits to you

Read more: 301 Moved Permanently"

19

thanks for the answers :slight_smile: I’m not really trying to make big profit from small capital.

I just wanna know if theres amount of money that most traders normally lose before they know that forex is not for them or they can be full time. Like you don’t have to pay 100k to drive, if you cant learn to drive with 100k, i think you should stop trying, something like that lol

This would help newbs. We would know if were spending too much in a business that isnt really for us. Almost all traders agree that forex is not for everyone, why not know when to stop. My engrish is not so good thats why sometimes i sound bad or impolite lol thanks.

20

About… 50k

21

Well, at least somebody asks for the downside numbers and not for the upside numbers. Great question!

I can just say how I handled that. When I first started, I put in $ 1k. If I would have lost that, I would not trade anymore. I must say I had before I put the first order in the idea to let trade my own developed bots. Albeit I knew I had to trade by hand to get the knowledge how to let bots trade.

In my experience what I can see is that my bots usually trade profitable and if I trade by hand I can’t make money consistently, because I do experiment too much. Well, with those experiments I get opportunities in the future.

After almost 2 years of fx learning and trading with a few months less it looks like this:

I made around 30% with my first broker. Deposited 1k and withdrawal around 1.3k. Albeit my account was after 4 months at 2k. In Between also again up to 1.6k. 1 or 2 years is not much time, so that’s why this account was going up and down like that.

I have now another account with a little more money, but now I am in loss. Albeit far away from a blown account. This is mostly related to some experiments in the beginning with this account.

My reason why I continue now is that I believe I have an edge with my bots at least over some months. I feel still as a newbie after only around 2 years fx knowledge, but as the years go by, I will have more and more experience what the expectation will be over the long run. So far I can’t complain. If you look at it like a career, any career in the world with high skills has a steep learning curve. In one account I even got a nice profit while learning and in the other account the loss is tiny if you compare that to any other high skilled education.

If I compare the loss I am in now and what is hopefully temporary, then this is as well nothing compared to losses of some stocks. Fx is treated by me as high risk money and as such I can afford to lose all.

My goal right now is to grow that account back to b/e consistently and then beyond that. Surprised, lol? Well, lets say I would blow that account next year or so, then I would stop trading fx. Because that would show, for whatever reason, that my past profit was a random event. If I reach my goal after 1-2 years, then it would imho show that I can make money consistently over some years. I would not only have made my money then with it, which would me set in position to continue, but I would also have more experience and can trust more in trading. I guess my limit is 5 years after which I would know how my personal perfomance is.

Sorry for rambling, but I think it might help more than just a number and nobody knows where my goals are.

22

Well I’d say if you’ve been working at this for 2 years now, probably no event will just make you up and quit like that. Losses and blown accounts can always be looked at as a positive IMHO. The best insight into my own trading seems to come through failures along the way.

If you never stumbled along the way, you might think it was as easy as it looks on the surface … and that just leads to ****y stupid trades. A perfect example of this was the run-up to the Internet bubble around 2000, whenever ‘everybody’ was making money trading stocks.

23

Thanks! Thats the kind of answer i was looking for lol. Quiting sounds negative but for me its a good thing in fx.

knowing when to quit with a good reason. All agree that SL in trade is important. Why not put SL in bank account? Lol
Btw im far from quiting, i like fx :slight_smile: