Beginners out look to the Market

Ontilt

Member
Found this on another forum. There is a strange truth which applies to all traders when starting out.

1. Second day of trading Forex - I love stop losses!
Hi All,

It's my second day trading a $2000 Forex account. First day I gambled and I ended up $51 on plus. Today I decided to gamble more responsibly and I set stop losses around 1:2 for each trade. The day didn't start too well, out of seven trades, five closed quickly on negative. On one I feel I had bad luck, since it was just the end of the wick of a candle stick that triggered the sell response. On the other ones, I can only blame myself... Anyway, I was not too disappointed about five losses in a row, so I kept going. I decided I need to learn quickly a proven method to earn money and the introductory courses from Forex helped. I rediscovered the MACD indicators and I was able to recover from all my losses. The day has not ended yet, but so far I am pleased with how is going on. The part I enjoy the most is that I can trade to a level that I feel comfortable with - so what I define today as a good day is having any profit (ideally above $5), and a bad day, losing more than $5. Until recently, I was down to about -$6, while now I am above $8. I will leave a few trades overnight and I can't wait to check tomorrow morning to see how much money I made (or lost) overnight. Life is good!

Cheers,
Nick

1. Re: Second day of trading Forex - I love stop losses!
Originally Posted by NickF
Hi All,

It's my second day trading a $2000 Forex account. First day I gambled and I ended up $51 on plus. Today I decided to gamble more responsibly and I set stop losses around 1:2 for each trade. The day didn't start too well, out of seven trades, five closed quickly on negative. On one I feel I had bad luck, since it was just the end of the wick of a candle stick that triggered the sell response. On the other ones, I can only blame myself... Anyway, I was not too disappointed about five losses in a row, so I kept going. I decided I need to learn quickly a proven method to earn money and the introductory courses from Forex helped. I rediscovered the MACD indicators and I was able to recover from all my losses. The day has not ended yet, but so far I am pleased with how is going on. The part I enjoy the most is that I can trade to a level that I feel comfortable with - so what I define today as a good day is having any profit (ideally above $5), and a bad day, losing more than $5. Until recently, I was down to about -$6, while now I am above $8. I will leave a few trades overnight and I can't wait to check tomorrow morning to see how much money I made (or lost) overnight. Life is good!

Cheers,
Nick
I have to remember the critical times when markets open. The Japanese market took the EUR/USD to a sharp fall, and at 5pm our time, the UK markets opened, they brought it back where it started from.

Out of my last 10 positions, 9 closed at a loss. Now I'm around -$10. I started gambling with more money, to recover my losses. After all, since I've been playing on Forex with real money, I never encountered a loss at the end of the day!
This is going to be long day... I'd be happy to end the day with $20 of profit

Nick


1. Re: Second day of trading Forex - I love stop losses!
The blood bath is still going on. I am down to -$12.33 I was worried I lost my edge, but after that I chilled out when I remembered that I don't have an edge! Lesson number 3. A stop loss point can not get me out of sh!t all by itself. Time to apply the George Constanza tactic! I need to do the opposite of what I am tempted to do!

Nick
1. Re: Second day of trading Forex - I love stop losses!
Originally Posted by NickF
The blood bath is still going on. I am down to -$12.33 I was worried I lost my edge, but after that I chilled out when I remembered that I don't have an edge! Lesson number 3. A stop loss point can not get me out of sh!t all by itself. Time to apply the George Constanza tactic! I need to do the opposite of what I am tempted to do!

Nick
CDS spreads at major global banks have moved sharply to decade high wides upon the rumoured return of NickF who, from his house under the Heathrow flight path, sways the currency market with mega-billion dollar bids and offers, most of which never transact. When "Nick the spoof" was questioned on his trading methods by the IMF after SDRs flash crashed last night by 6.7%, NickF responded "kiss my rhino a**e boys" via his publicist. Monetary authorities tracking terrorism funding movements reported large transfers between Swiss Banks and Lichtenstein family accounts, one of which was called "NickF Milking Markets (Cayman)".

Emergency meetings are being convened in Washington at the request of US Treasury Secretary, Jack Lew, who has moved NickF to the top of the financial stability risk list, displacing Greece. Christine Lagarde was unavailable for comment, returning to Washington from a recent meeting of European Finance Ministers in Latvia. She appeared visibly distressed as she boarded AirForce 1 which had been dispatched urgently.

When questioned about these developments, George Soros fell silent and could be seen to mouth "Oh F**k, NickF is back."

1. Re: Second day of trading Forex - I love stop losses!
Stupid AUS200, it was supposed to go down! Anyway, who is moving it, now after the Aussie markets are closed???... And how in the world did I set my stop loss so large, I would lose a fortune until it is met... Time to take another (well deserved ?) loss... Or maybe should I wait some more? Maybe a fortune it is to be made, if conditions come right?

PS - whenever I was looking at the chart, it was not moving at all! Later I discovered I was on an 1 hr timeframe. When I went to 5 mins, I could see some idiots keep raising the price of AUS200! I am quite angry on them!

1. Second day of trading Forex - I love stop losses!
Originally Posted by DeepState
CDS spreads at major global banks have moved sharply to decade high wides upon the rumoured return of NickF who, from his house under the Heathrow flight path, sways the currency market with mega-billion dollar bids and offers, most of which never transact. When "Nick the spoof" was questioned on his trading methods by the IMF after SDRs flash crashed last night by 6.7%, NickF responded "kiss my rhino a**e boys" via his publicist. Monetary authorities tracking terrorism funding movements reported large transfers between Swiss Banks and Lichtenstein family accounts, one of which was called "NickF Milking Markets (Cayman)".

Emergency meetings are being convened in Washington at the request of US Treasury Secretary, Jack Lew, who has moved NickF to the top of the financial stability risk list, displacing Greece. Christine Lagarde was unavailable for comment, returning to Washington from a recent meeting of European Finance Ministers in Latvia. She appeared visibly distressed as she boarded AirForce 1 which had been dispatched urgently.

When questioned about these developments, George Soros fell silent and could be seen to mouth "Oh F**k, NickF is back."
DS, I am glad at least one of us is having fun!

1. Second day of trading Forex - I love stop losses!
I have a plan... I will close all transactions and I will get out for a few minutes. Then, I will come back and pretend it is tomorrow! It's impossible I will have such a trail of bad luck tomorrow!?


1. Second day of trading Forex - I love stop losses!
Originally Posted by NickF
I have a plan... I will close all transactions and I will get out for a few minutes. Then, I will come back and pretend it is tomorrow! It's impossible I will have such a trail of bad luck tomorrow!?
I went outside and I fed one of the stray cats that learned there is free food at our place! It's the first time I convinced her/him to eat from the bowl in my hand.
My luck is coming back. I recovered to -$15. Probably it has to do with feeding a hungry cat. Now all the trades look crystal clear.
After all, all I want is just 0.0000000001% of the total volume of trades to be mine. This surely can't be so difficult as other people claim to be? I have a theory, that say the people who make a lot of money in Forex, try to scare away beginners like me, so that they get all the money just for themselves! Well, I have bad news for you, folks! I am here to stay!

Nick


1. Second day of trading Forex - I love stop losses!
Originally Posted by NickF
I started gambling with more money, to recover my losses.

Nick
It all sounds a bit too familiar. The best is to walk away for a bit and clear your head, before you "attack" the market again
Reply With Quote


1. Second day of trading Forex - I love stop losses!
Remember Nick... When in trouble.. Double!

1. Second day of trading Forex - I love stop losses!
Originally Posted by Modest
Remember Nick... When in trouble.. Double!
That HAS to be a good rule, because it rhymes! Why didn't anybody tell me about it before? Some people keep the best till last...


1. Second day of trading Forex - I love stop losses!
2. OK, time for a new rule for me. Today I lost about $22, which is significantly more than what I intended for one day. At some stage during the day I was in front with $10. In order to prevent the loss of funds too fast, I decided to limit my gains or losses for the day to +$6 or -$3 (whichever comes first) and to invest only $1000 per transaction. After all, my intention is to keep myself involved and learning, not to earn a living (or lose a living ) from it. As DS said, Forex may be not the best investment method out there, but there are plenty of rules and strategies that are common to investing (one of them being discipline).
If it happens I recover my loss of today in the next days, I will allow myself to increase the daily limit.
The rule remains valid until tomorrow morning.

Nick

Day 1 = +$51
Day 2 = -$22


1. Second day of trading Forex - I love stop losses!
Originally Posted by NickF
OK, time for a new rule for me. Today I lost about $22, which is significantly more than what I intended for one day. At some stage during the day I was in front with $10. In order to prevent the loss of funds too fast, I decided to limit my gains or losses for the day to +$6 or -$3 (whichever comes first) and to invest only $1000 per transaction. After all, my intention is to keep myself involved and learning, not to earn a living (or lose a living ) from it. As DS said, Forex may be not the best investment method out there, but there are plenty of rules and strategies that are common to investing (one of them being discipline).
If it happens I recover my loss of today in the next days, I will allow myself to increase the daily limit.
The rule remains valid until tomorrow morning.

Nick
First off, I know text is pretty 2-dimensional but it seemed like you were slightly frustrated earlier. Remember don't chase your losses! If you have had a couple of trades in a row go bad, take a breather and come back later, the markets are always going to be there! whether that be two hours later, two days or even two weeks! Unfortunately your account won't be after irrational trading

1. Second day of trading Forex - I love stop losses!
Originally Posted by evilk9
First off, I know text is pretty 2-dimensional but it seemed like you were slightly frustrated earlier. Remember don't chase your losses! If you have had a couple of trades in a row go bad, take a breather and come back later, the markets are always going to be there! whether that be two hours later, two days or even two weeks! Unfortunately your account won't be after irrational trading
Thanks k9, you don't sound so evil
It is good advice.

I was not that frustrated, this is a risk I am willing to take, as long as I end up with some useful knowledge at the end of it. Of course, it is more fulfilling when you end up the day on positive, but I usually learn more from mistakes.

Today I learnt to treat trading more seriously and be more disciplined. Even if I don't play with big money, if I don't follow proper practice, it's not going to be very useful.

Nick


1. Second day of trading Forex - I love stop losses!
I came to my senses and I decided to do Forex trading on my demo account. Better to lose virtual money than real money Modest gave me good advice (to try to double or triple my virtual money), thanks for that. I will get involved in some backtesting, to see if I can find a strategy that worked in the past, while learning some more technical analysis.

Nick
 

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