Rattle Snakes

Maaaan… I opened a 2500.00 account about a month ago. I trade one 10,000.00 lot with super tight stops after ten trades I’m 40 bucks in the hole primarily because the stop on my first trade was to big. This is like feeding rattle snakes.

I doubt that you traded 10,000 lots in one trade with a 2,500 account, at least not standard lots. It sounds to me that you should spend a lot more time on education before you enter trades.

I doubt that, also. :wink: But it isn’t quite what the OP said …

“One 10,000 lot” sounds to me like [U]one mini-lot[/U], i.e. 10,000-worth rather than a full lot of 100,000-worth. :wink:

Not too terrible? $4 per trade, on average, which is 4 pips down, per trade, on 1 mini-lot at $1 per pip? Though an “average” may not signify much, if the first trade saw disproportionate losses through a too-wide stop.

Hoping the situation’s improving, now, and that it’s a demo account, on which the rattlesnakes’ bites are very much less serious? Good luck …

$40 bucks in the hole on a $2500 account is only 1.6% loss on your account. It is not bad in any way. However, a loss still stings no matter what. Your first few months of trading are going to be emotional as the sense of real money trading will affect and skewer your sense of direction of the market.

Your option is to use smaller lots, try micro lots. That way, you are not worried about major losses, you can also relax more and adjust your strategy to experiment with what works for you without the constant worry of big losses. Emotion and psychology are the main factors in the trading, start small and slowly work yourself up from there. If you don’t master your mind, no matter how good your strategy are, you will find a way to give it all back to the market.

Good luck my friend.

Try lowering the lot, don’t be greedy or you may lose more than you are willing to. For 2,500$ best lot is 0.02. Once you improve your trading and have consecutive winnings you should increase the lot, starting to 0.03, 0.04 and so on.

The correct way is that you had invested 2500$

Assuming that you trade in a Standard account here you mean 10,000$ which is 0.1 Standard Lots = 1$ pip

With 10 trades you lost 40$

I will say that you are wrong in Money management and Planning of trades. Either you have no idea about trading or are just playing with it :slight_smile:

Well, the OP has already attributed most of his small loss to a mistaken position-size on his very first trade, Archie.

It’s difficult to say more, surely, without knowing what size stop-loss he’s normally using? With the $2,500 account-size he specified, for example, risking 1% ($25) on each trade of one mini-lot would suggest a 25-pip stop-loss. That might be perfectly reasonable, surely?

That’s a bit harsh, perhaps, to a complete beginner? :33:

Just spend some time here on baby pips and try to educate your self as much is possible before you lose your money.

You can look at it either way. My second thought was that he meant 1/10000th of a lot. Either way I think he has his work cut out for him.