I began Forex Trading around June of 2013. I started with 5000. I now have 530. I know I have not been successful but I have learned and learned a lot. I am determined to be a successful trader. To accomplish this goal I know I have to change. I have to learn to be more humble and to accept a trading loss. learning to accept a loss to prevent further possible loss is not a defeat but an accomplishment. Pulling out of a trade and excepting a loss is my biggest problem when trading Forex pairs. I believe this is the downfall of most Forex newbies such as myself.
At this time I refuse to add more funds to my account. I need to learn by my mistakes and turn this thing around. I need to make the entire 5000 back before adding funds… I know this may not be realistic but I will need to at least prove to myself that I can trade successfully before adding funds. To do this I will make short term goals. If these goals are met and I can honestly say that Ii have matured into the type of trader who can make money at this then I will add funds.
Ok today I start to record every trade I make. This will keep me from trading too much. In addition, I can analyze my my logic and just as importantly my mindset when making each trade.
My short term goal for January is to make 100 dollars. I should have 630 in my account by the end of January. I know that does not sound like a lot but its over 20%. Hope that’s not too aggressive.
You answered your own question there… $100 is not a lot of money. In the context of your account though, it’s almost 20% in a month. Compounded over an entire year, [I]that’s 791% annual return.[/I] It’s ridiculous to expect to earn that much at a sustainable rate. Sure, it might be able to be done if you get lucky and have huge risk, but if you don’t blow yourself up completely before then, you will at some point in the future.
You’re dangerously treading the line toward a gambler mentality. This is a line I hear over and over again at the casino… not once from successful traders. Why? Successful traders have already practiced on demo. They are ready for drawdowns, and they weather through them with a combination of risk management and the knowledge that their tried and tested system will not fail them if they stick to the rules. Successful traders don’t need to think of a plan once they’ve been drawn down, because they prepared for it and already had a plan.
Friend, I mean this with no ill will but you are not ready to trade live in the markets. You [I]need[/I] to go back to demo… your own psychology is your worst enemy. It’s clear that you dove into this without a plan - otherwise you wouldn’t be in a position where your account is at a 90% drawdown, requiring almost an 800% return just to get back to where you were. I applaud you for wanting to learn from your mistakes, but the way you described is not the proper way. To learn from your mistakes, you will need to make [I]more[/I] mistakes - it is how we grow as traders. Why make more mistakes on your live account?
Thank you jadd806. I will take your advice to heart and do more trading on my practice account I know I should not use my live account. I will tone it down considerably.
Glad to hear! Good luck to you, and safe trading! It would be cool if you posted in the future showing what you’ve learned from this experience, I’m sure a lot of new traders could use that.