Losing Money

[flowzen 10]

Isn't losing money a choice? As a beginning trader, I only take trades near support/resistance with volatility on a stock I know. It helps that there is a underlying market which is heavily manipulated by its home government. If the stock moves past the predefined support/resistance-I'm out. If I lost more than I could afford for that day-I don't trade anymore. Don't take anything with more than 3:1 ratio, taking half at 50% and letting whatever else run until it reverses by a dynamic margin. Now I'm not making a ton of money doing this-but I am profitable because my big winners heavily outweigh my small losers. I trade with 25% of my account because of its size, and factor in commissions(which by trying to "free trade" accounts I've kept to a minimum . So unless I just lose my head and start trying to scale, or use too big a position, or not exit a trade as soon as it moves against me-how could I lose money?

[spareappeal 10]

i dont think that loosing money is a choice .... its not necessary that you will lose in the beginning ... all you have to do is to have some experience learn some tricks and then start trading ,,,

[pro4Xtrader 10]

I can not imagine someone choosing to lose money. Obviously it is not a choice but luck of good strategy or poor trading psychology.

 

You are one amongst very few who are successful trading. Good job, keep it up

[Ammeo 10]

  flowzen said:

Isn't losing money a choice? As a beginning trader, I only take trades near support/resistance with volatility on a stock I know. It helps that there is a underlying market which is heavily manipulated by its home government. If the stock moves past the predefined support/resistance-I'm out. If I lost more than I could afford for that day-I don't trade anymore. Don't take anything with more than 3:1 ratio, taking half at 50% and letting whatever else run until it reverses by a dynamic margin. Now I'm not making a ton of money doing this-but I am profitable because my big winners heavily outweigh my small losers. I trade with 25% of my account because of its size, and factor in commissions(which by trying to "free trade" accounts I've kept to a minimum . So unless I just lose my head and start trying to scale, or use too big a position, or not exit a trade as soon as it moves against me-how could I lose money?

 

This is what i do as well. I never trade big and go out of negative trades early.

[fxfive 10]

One doesn't choose to win or to lose, however once you have decided to trade safer or riskier then you are also increasing or reducing the probabilities to lose. I also put into practice some of the actions pointed above.

[Dahan 10]

Losing money is not a choice for beginner, usually it's the result of your decision. For begineer, make a strictly risk management and stoploss to control lost, and the top objective should be learning, not make profit for beginer.

[fxeconomist 11]

  flowzen said:

Isn't losing money a choice? As a beginning trader, I only take trades near support/resistance with volatility on a stock I know. It helps that there is a underlying market which is heavily manipulated by its home government. If the stock moves past the predefined support/resistance-I'm out. If I lost more than I could afford for that day-I don't trade anymore. Don't take anything with more than 3:1 ratio, taking half at 50% and letting whatever else run until it reverses by a dynamic margin. Now I'm not making a ton of money doing this-but I am profitable because my big winners heavily outweigh my small losers. I trade with 25% of my account because of its size, and factor in commissions(which by trying to "free trade" accounts I've kept to a minimum . So unless I just lose my head and start trying to scale, or use too big a position, or not exit a trade as soon as it moves against me-how could I lose money?

 

Could track decent money management in your trading description. I have approximately same trading setup but only for currencies, 1:50 leverage, no more than 0.5 lot size and fixed spreads (special Hotforex account). And my profits do outweight losses as well, because I my drawdown never exceed 0.5% of my account or i close the trade.

[barako 10]

its all about the mind set, this is how i look at it, losing money is part of it definitly but, the thing i try to achieve is finding ways to lessen the loses rather than expanding the profit, you could say a bit of both, that way its easier not to get too frustrated with loses, loses are normal i even burned an account with hotforex a ccouple of years back, and learned from it.

[Krown 10]

There is a book by Dr Alexander Elder called 'Trading For a Living" or something like that. I strongly recommend you to read it (you can find the online version) and see that in fact people are addicted to losing. Its a fascinating book.

[barako 10]

thanks for sharing thats one interesting book, Ill look into it

[SurtiTrader 10]

I have gone through it. It is actually quite nice and contains very good knowledge you should own it too.

[Dahan 10]

Just take it easy, I believe every one has lost experience, some one reconsider lesson and try to perform better next time, some one just quit.

[timlisten 10]

If you are a beginner, why not start by paper trading for longer, and then when you gain more experience, then move on to real trading.

[aimhi 10]

  timlisten said:

If you are a beginner, why not start by paper trading for longer, and then when you gain more experience, then move on to real trading.

 

 

I guess new traders should trade demo accounts provided by the brokers for few months before going to trade live. Trading demo accounts might seems to be tiring job however it helps getting familiar with the broker internal systems and processes. It also helps learn trading easily and absolutely no risk of loosing money.

[CrazyCzarina 17]

The average forex trader loses money, which is in itself a very discouraging fact. Forex is risky business for traders which do not know trade. Proper knowledge and experience make Forex trade easy otherwise it is very tough and risky.