Hi guys, I have been studying on forex a lot, and when i first enter forex. I only deposited 100usd, then within 2 weeks i won 600 usd. But then things went down the drain. So I deposited another 400usd, and I still got some profit at first, but it went back to the drain with now left of 100usd. I tried on demo, and tried several method, I still lose lose lose and lose. I have no idea what to do now. I’m trying to get back the rest of the money i deposited. And take a break from forex. Feeling kinda depressed because 500usd is really kinda hard to get for me.
Stop trading immediately.
You’re trading with money that you are too emotional with. You’re over trading because no practical trader turns a 600% profit in a short period of time. You got lucky.
No get rich quick here, no matter what anyone tells you.
Take your time. Start slow. Forget the loss, you will never get it back if you try to get it back. Consider it the cost of your tuition to learn how to become a truly profitable trader.
Like above, please stop trading.
Spend a few months at pipschool and practice on a demo account, trying different systems (3 ducks is a good, simple one).
If this goes well you could reconsider in 4-6 months time
This is common, so don’t feel like you’ve been suckered.
I personally don’t think it’s mere coincidence that the majority of retail forex traders who are grossly underfunded are also under-educated, yet it’s RIDICULOUSLY simple to set up an account and be trading with 50-1000x margin within minutes…
+1 to everything MG99 said.
You need to stop trading, and educate yourself on the markets, human psychology and risk management.
I can tell you one thing, and this is my opinion. When you claim “I’ve been studying forex a lot”… then follow it up with the fact that you made 600% (on $100), lost it all basically, and now are upset, that you’re simply very new to the game and are making necessary mistakes.
Trading like a professional is absolutely no different than any other skill which one attempts to master.
I don’t know where you’re from…but think of it like this: The professional traders out there- do you think they were up and running in 6 months, making 100’s of thousands of dollars with near-perfect execution?
Would you be able to pick up a baseball bat, and go up against a professional-level pitcher who could throw 98MPH fastballs inches from your face? Would you be confident holding that bat?
How much confidence do you have in yourself? Are you seeking validation through trading?
Look, everyone pays the price in the beginning- that 's why the turnover is so grossly massive and why retail brokers make so much money.
You need to understand what and who you are up against. If you don’t know your competition, how do you expect to avoid defeat.
Read books.
Find a mentor.
Dig and dig and dig and dig youtube for videos.
Don’t put too much value in demo trading- it’s nothing like live trading. Demo trading should only really be used to test a platform and a get feel for the markets in the beginning.
Read more books.
Cut your losses. Always cut your losses. It’s not about how much you make- it’s about how much you can actually keep @ the end of the hour/day/week/month/year.
Jake
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Thanks everyone. Your advise is much appreciated.
First and foremost, you have to consider the cause of the depressed, was it caused by some losses you encountered in the market? If so, it will phase away with time, also try to focus on positive things and not just negative events around. You can still tell it to God in prayer.
Follow Jack Schwager on twitter.
Not trading is trading. There are not just two position types: long and short. There are three: long, short, and flat. Just because you are flat, it doesn’t mean you are through as a trader.
Livermore lost millions and started over more than once. But persistence was his greatest asset, followed by patience.
I used to think Seykota was being a bit snarky here, that he was saying that people who can’t stomach losses should not be traders at all. But what he may mean is for traders to step back and let their position be flat when the market isn’t giving them what they need to profit. Then, be ready when the market gives you opportunities.
Less than 1% of the work of a trader is keying in orders.
-Adrian
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Read about Market Wizard Marty Schwartz.
Quote from Market Wizards: “[I]Schwartz’s story should also encourage traders whose initial attempts at trading have not been successful since Schwartz himself was consistently unsuccessful over a 10-year period. It wasn’t until he found a trading style that matched his personality and changed his mindset that he became successful.[/I]”
A trading style that matches our personality and a change in our mindset are what we are each after. It comes with patience not to blow all our cash before we get it and persistence enough to get it.
-Adrian
Like others said, you should probably stop trading for a little while. And by “stop” I mean stop altogether, don’t even trade on demo account. Go outside, do something else. Take at least a week off, if possible. Then go back to the demo account and start practicing again. Write down your mistakes if you have to, so you can learn from them and not repeat them again. I recommend to begin considering trading with real money again only after you start consistently avoiding making those mistakes.
Fail boldly!!!
Fail exponentially!!!
Fail again and again!!!
Don’t trade money, trade ticks. I trade dimes. Find a way to get more ticks. Document that and try again. This is hard. Know it’s hard. Embrace.
I lost just like you. And it was awful feeling.
But now. I laugh.
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I agree with those who say that we should stop trading for a while. You need to start doing something that brings pleasure. You can walk, you can work out, watch a movie, listen to music. Sleep well. This all helps to get out of depression and start trading with new forces.