I’m new to forex. I’ve endured a lost of over 10k in trading in a matter of 4 months.
Having difficulty coping with the loss. Emotional well being is at its lowest. Has anyone experience anything similar. I’m at a point of giving up on trading.
Katie, I’d venture to say that what you were engaged in for those four months was closer to gambling than trading.
I’ve experienced worse losses but not in trading. I know exactly what you are feeling. You’re going to come out the other end either giving up on trading or with a newfound determination to succeed at trading and do it right this time.
Let’s us know where you land. In the meantime I suggest you don’t trade your live account. Use a demo account, if at all.
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That’s tuition money, man. You spend them in the right place. Not many have this chance. Now you can answer many questions about market movements, how a position pushes the price, what’s with the hedging, scalling in/out, where is the average of your positions, etc. I also lost 3k in tuition in about 2y. Totally worth it.
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I have lost money by trading and I am losing it each week. But that loss is controlled and acceptable.
I did not lose the amount like you have lost but I know someone that have lost more than you.
Do not be too sad because it is part of learning. If you have lost money think on a positive way.
You should learn something from your loss.
Think about your mistakes and write them down.
The goal should be not to repeat them again.
When you pay tuition for a college you expect to gain knowledge from it. Your money is lost for better good.
Think about this loss in similar way. Learn from it and learn a lesson. Do not let the money being wasted.
Now, I think you had these problem while trading that were the cause of loss:
1. To much trades open
2. Trade is over sized. Lot size is to big
3. Trade does not have stop loss
4. Trade have stop loss that is more than 10% of your account balance
5. Your trades does not have take profit level
If you had some of these problems you can see what you need to solve if you want to succeed.
10,000 is pretty nice amount of money and you could earn nicely weekly or monthly return with 3-6% on each trade.
With 1% stop loss you could lose 10 trades in a row and still have 9,000 to trade further.
Imagine that scenario if you follow only few guidelines.
I have worked with beginners and traders. All of them had similar problem and those problems were from the above list.
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Try to find out reasons for your failure. It can be lack of knowledge or lack of experience etc.
Its better to spend quality of time to educate yourself as well as start trading with demo trading account then switch to Real account. While using Demo account try to develop different strategies and find out how to create strong trading strategy.
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Yeah… All nicely recommended.
Hopefully you can recover mentally. Heads up.
Start anew
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Then you must use the demo account; live trading is not the appropriate choice to the new traders!
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we all as trader have to cope with loss as it is part of the territory. If the emotional side is causing to much pain the position size and risk was to much for the account at the time of the trade. Having lost big in my life I can see where you are coming from but can also say that once your skill set is refined and have discipline there is light at the end of the tunnel that can be a career.
Don’t listen to paid signals service. charlatans selling a crappy course or big mouths who think they know everything but dont do trading as job because they also lose. Use the education here , build a good plan and stick to it as we all see the markets a different way.
Wish you well
Kind Regards
Langers
The Scuffy Trader
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Maybe you can develop your knowledge and build your trading skills with free online courses.
Mabybe you can try the below steps:
- Skilled foreign exchange transaction process: foreign exchange trading platform and trading time period
- A few targeted learning of several mainstream indicators (such as K-line, moving average, Bollinger, etc.)
- After knowing a few basic indicators, simulate the simulation exercises.
- Practice and summarize experience during the simulation.
- Download the software and register your real account.
- Communicate on the forum or in the forex trading circle and find out the best strategy for you.
- Persist and persist tenaciously.
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My two questions are; how long did you study and practice with a demo account before going live? Did you by any chance study Risk Management in Forex?
Hi Katie, I lost around 10k on trading too when I first started out. Now I’ve been a full time trader for 3 years and pay for my monthly expenses through trading. So there is light at the end of the tunnel. It can be done.
However, knowledge is key to this game. You need to start all over and re-educate yourself (or educate yourself if you didnt do it the first time). I would advise you to give up trading for a while. Start your education here. Take you time, study hard, read books, ask questions and get involved here at babypips. Best of luck.
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So much truth to this reply. Bankroll management is the biggest key to your success in forex. I can’t stress that enough. IMO forget about the money now, its lost, nothing you can say or think can bring it back. The only thing you can do is learn from the mistakes you made losing it and make better choices. maybe if your lucky and don’t quit, you’ll be celebrating when you surpass the 10k you lost in earnings. Good luck, everyone loves a good comeback story
Find out why you lost this much. Come back better and stronger. Everyone loses, just how you react to it that matters.
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great advice. I will definitely utilize them.
thank you
I studied for a month and was in demo for a month . my demo account was over 110% profitable. the moment I went live with bigger capital I used way too much of it.
my experience is similar though ive carried on, i probably benefited from the loses because im now aware of the pitfall s of over sizing certain trades, the volatility of certain pairs and how they move ect. i lost quite a large amount for the first 4 months then the following six months i practiced on a much lower budget this is an excellent way to learn i feel , i feel im in a zone now where i never be unprofitable overtime again
Well, you learned an important lesson - don’t invest big sums when you’re a newbie. I learned that lesson too, unfortunately. What I can advise you now is to take your time to learn before you invest again.
Wow! That’s cool. Lot of great lessons packaged in your loss. I envy you.