Trading is supposed to be a great way of making money, with few pips a day one can make $100 or more every day. And within few weeks to months one could be making like 10k-20k per month just starting out on a shoe strings like $500.00. Bang! We all signed up for demo accounts and rushed to Babypips.com to learn few trading tricks to start with. After few good wins by chance, you decided to open live account. The rest is now history. You are tramped into the club of losers! 95% or 99% of traders loses their investment money on first attempt.
At Babypips you discovered that everyone is boasting of one great strategy or another that is turning out 100pips of everyday, but only very few people working for banks and investment institutions are actually earning some decent money (not anymore).
Few months down the line you are now part of the blind folded masses who believed that they will come out with their own winning technical stuff. But before you could even perfect your dream of becoming the next Wall Street Whizkid, your account is wiped out and you are left high and dry. Of cause no one will borrow you money to blow out again. So what do you do? Go into hiding? Borrow from people? Or look for a place to learn how to recover from losses?
What is actually missing in most forums and most threads is how to raise money for trading, after disasters struck.
Much attention is focused on auto-boots, EA, pips and making pips and less on what to do after you willingly handed over all your hard earn income to your broker. Some people do shout fouls or daylight robbery, but you cannot prove it.
Or do you keep pumping money from your normal job into trading account to be blown out now and then? What if trading is your full time job?
Unless you are new to trading forums, you will see of recent that many people who have been boasting of making many pips have chilled out and not to be heard of again. So what has happened to all these people that were doing so well in the past?
As someone who has been developing training modules, I discovered that most forums do not have sections for �recovery traders� like that of �recovery alcoholics� where people can meet and discuss nothing else but how to raise money to start all over again. You may be thinking how can someone who lost all his/her saving possibly raise money again. This is the point. If you are alone you will be thinking that this is the end of the world due to your losses. This is not the case; there are people who have gone through similar situations and there are programs out there on the net that have helped people raise money from few hundred dollars to thousands of dollars within few days or months for them to start life again. These programs are usually run by people of like minds and believe in the same cause.
I do have some few of such programs in minds I want to share and some are already working but I want to know if this thread is out of context. I believe that sharing ideas of how traders can have access to funds to enable them continue trading or learning how to trade is as important as discussing SMA�s MACDs, etc.
I think your topic is valuable. I recently went through some stressful loses and had to rethink what exactly went wrong. If you have any tips on how to manage stress and avoid compounding errors please let me know.
Well I am not looking at how to manage stress while trading as such or when you still have capital to throw away, but at how to network with other people to get capital to rebuild your life, and of cause in the process we can talk about avoiding compounding errors.
I try to make the discussion group a social network group and created a link for it. I am looking at making it a closed group. But for now it is open I need people’s opinions
I know your post probably came from a good place, with good intentions. But, IMO, the first half of your post is largely BS. Such as:
“At Babypips you discovered that everyone is boasting of one great strategy or another that is turning out 100pips of everyday, but only very few people working for banks and investment institutions are actually earning some decent money (not anymore).”
And the idea that we need a recovery forum for traders to regain lost amounts of money or learn not how to lose it again is rediculous here is why: (these things have been said on this forum and elsewhere so many times it make me sick to hear them again)
Not only in babypips school, but also all over this site it’s been said over and over, “don’t start a live account with more than you are willing to lose.”
Here is a realistic scenario: A person makes 25-35K a year where they currenlty work and has saved up 20k in total savings over x amount of years, then they discover trading. That’s all the money her or she has. It would be stupid for them to take that 20k and put it into a trading account thinking they would get rich quick. It would make more sense to start a micro account and trade small, learn something and slowly compound.
Moral of the story: If you put ALL your saved money into a trading account then you are a moron and have already broken every money managment rule of trading. If you losing your trading account ruins you financially, then you should not put that money into an account.
“demo for a six months at least.” I don’t agree with that but if you start out live quickly and expect to be the michael jordan of trading, you get what you deserve.
Accept the risk of every single trade. If you can’t except the risk don’t take the trade.
only risk x% of your account.
understand leverage and margin or don’t trade. Abusing leverage can deplete your account very quickly.
develop an edge. IE, you know that 7/10 trades will likely be winners if you follow the trading strategy you’ve put together.
Trading isn’t gambling unless you treat it like that. Traders don’t need recovery groups, gamblers do.
(And the best reason why your idea is really silly.) Micro account, Micro account, Micro account! If you don’t have a fat wad of cash to throw around that isn’t a big deal to you, then don’t save up x k and then trade! A larger account won’t make your trades work better!!!
Virtually every good broker is offering micro accounts that you can start with no minimum or a few hundred dollars. So, the very issue of trying to raise funds for a trading account is kind of silly.
Frankly, if losing a few hundred hurts you financially you should still be in demo, until you move out of moms basement and get a job.
If you are constantly losing: Stop and reassess don’t continue trading away your account. Don’t anger/revenge trade. ext, add nauseum.
Compound your account. You can start with a small micro account and keep compounding it. I started with $100 a few months ago. Now it’s up just over 2K. I’m not rich, but I’m trading rationally and applying things I learned and improving over time. (I disappeared from the forum for a while, not because I stopped trading, but because I took a break because of mild illness and to try new strategies in demo)
All of these things and more have been said on babypips.
I don’t mean to sound like I am picking on you, but I have to point out how down right silly your idea is.
If someone lost a large amound of money trading, to the point where they can’t raise that amount easily then:
A: they shouldn’t have had an account of that size to start.
B: They don’t need counceling on how to raise the money again, (they will just lose it in trading again) they need to learn just about everything that’s been mentions above like a zillion times on babypips already.
P.S. the sad fact is most people don’t learn important lessons well, unless they are a bit painful.
Yes I also agree with the Phoenix. Never underestimate the psychological let alone financial damage you can do to yourself by taking undue (and often unacknowledged) risk. If you do get yourself in this position then quite frankly rebuilding your capital might be the least of your worries. When will people get the message that this is NOT a route to quick riches, that most will lose (so make it a small amount) and that no matter how much you practice there are no guarantees. As already said we cant all be Michael Jordan, Tiger Woods, Serena Williams etc even if we study the game and practice ad nauseum
baby pips should be used to teach one thing, control if you cant control your emotions and you blast away money you don’t have, then what are you really doing, it is not this site or any for that matter to determine the amount of money to put into your account safely, its yours…
read the school part of the site and you will notice the warnings, while you can be profitable, you have to understand the risk. This site over all is one of the better ones I have found and nowhere did i find where it said i should spend my life savings on fx. If my account happens to get blasted i happen to have money to get back on my feet, not a lot but I can still live comfortably without the money i put in to the acct.
imo if you cant afford it, don’t do it, it is ultimately your responsibility as a trader to stop if your getting it wrong and find out why, not keep trading away your money, the 2% rule is there for a reason and explained well all over the site.
If you make a average of 15 pips and day and you trade only 4 days in your week that mean you still have 600$us every single week.
At 15pips a day, when you trade full time (8 hours a day) it’s not that hard to get if you truly know what you’re doing.
600$us a week * 40 (because of your 12 week of vacancy of course) = 24 000$us/years.
You’re right, it’s not alot of money but, let’s say the next years you still get your 15 pips a day for only 4 day a week but with 2lots instead of only one.
You make 48 000$us/years now. Think about this, what’s the % on this earth of people doing more than 48 000$us a year?
Not alot, trust me…
About 3 lot now?.. About 4?..
And what if you invest that money? In real estate for exemple… You can get really rich pretty fast.
I’m sorry, but that above shows how noobs blow up accounts. For those that have troubles with math let me help.
15 pips x 4 trades = $600. That’s $10 a pip!!! No noob on earth should start trading like that. I don’t think that most new traders have a sufficient account balance to survive a bad trading day at $10 a pip!
Also the psychological effect of having a 50 pip loss! I can’t imagine losing $500 in a day!
I’m sorry but getting a noob to use multiple lots is suicidal. A $500 loss just became a $2000 loss using 4 lots.
This is the perfect example of how and why noobs loose thousands of dollars. I don’t know how many journals I have read of people destroying accounts because of no money management.
People are in such a hurry to make money they throw all common sense and care in to the wind. Need proof? Check out the thread here where someone has lost almost $2000 in forex and is getting married in a couple of months. No he is asking for a mentor to help him trade and win his money back.
This isn’t gambling. This is investing. I can’t play basketball. I can’t sing or play an instrument. Trading is a skill and not everyone can do it.
i don’t really know if that was the point there, while money management is a neccessity, trading 100k in market is a while away for anybody starting new. i personally will only move up a lot size should i reach the point where i can successfully lose 5 trades and still be up above that thousand level that goes along with that lot size, which has worked for me
ie: 3 lot 4.5k in acct.
i’m not a forex genius by any means but realize how far off trading 100k is for me in actuality. the more important thing is to make sure you don’t get caught up on win streaks. everything in here should be looked at before you act, lot size, leverage and of coarse the trade you will be taking.
if you hop in and slap 1000 of your money on a trade and don’t know what your doing… well kiss it good bye. but if its controlled and you’ve reached the point where you know your system well enough and have a bit of a fall back and trading that 1000 wont kill your acct, and your personal probability is high enough then whose to say trading it is a bad move after all if you are 80 % and you have the capital because of a good system you’ve developed, then its a little different
but trading 1000 and losing it then hoping from forum to forum looking for a way to get the money back… at that point you’ve gone into revenge mode… which never seems to end well
You can follow up on this development here
Twitter / fxbroker
People always hijack thread to their own views. I do not want to get involved in such unending debate but go forward. Any one interested can fallow me at Twitter / fxbroker
There are some few options anyone can use to start rebuilding or recovering financial losses, whether used for trading or something else it is up to that person. The fact remain is that there are options to get bailout again
If you’ve lost a ton of money trading, then before doing ANYthing, you need to step back and reevaluate. If/when you start trading again, the first thing you need to focus on is money management. This is easier for some than it is for others. If you can’t consistently risk only what you can afford to lose, then you shouldn’t be trading. Once you have laid out some guidelines for yourself and believe you can follow them (i.e. only risk 1 or 2% per trade), then spend time learning a system and practicing it on a small or demo account. Here’s where good, solid training that covers both the technical and psychological elements of trading is invaluable. Once you can see a solid, lengthy track record in front of you, then you are probably ready for the real thing.
In addition to poor risk management, two of the most common and deadliest mistakes traders make are approaching trading as if it were a game, and overtrading. We’re all prone to it to some degree or another - always keep yourself in check so you don’t fall into those traps!
It took me few months to finally put the idea together. Yes it is possible to both find ways to start all over again and learn to avoid the same past mistakes.
I have put up an ebook on how to avoid whipsaws in the market if you are able to view them as act of unrighteousness (indiscipline, anger, revenge, frustrations, fear, etc are causes of whipsaws/unrighteousness in the market) you can also apply biblical principles to avoid them or trade in times of unrighteousness.
Before you start punching the thread - it is better to get hold of the ebook, see how to detect unrighteousness in the market using CCI. If you disagree well you can then come back here and punch the thread.
Inside the ebook I have some recommendations on how to raise funds for trading via cash gifting. If you have lost before in the market, you will be able to get up again if you believe so, irrespective of what other people are saying. So many companies have lost huge money in the past, they seek for cash bail out. If you don’t as a person when the means is available that is up to you
Here is the link to download it for free.
Click to the free ebook page
I am not sure if it is right to give out link to another site,
if admin remove the link just PM
