70% Account Drawdawn.

If you don't know where to start, start here! Don't be afraid to ask questions.

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genlogins
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70% Account Drawdawn.

Postby genlogins » Wed Sep 15, 2010 9:58 am

[glow=color]What Happen When You Loose BIG[/glow]


This thread is dedicated to all traders that have lost or continue to lose money with their trading.

I feel that most of us should re-start somewhere but we need to learn from successful traders with their past mistakes, emotions, techniques to control or understand what ever comes into your head during this hard times of losing money.

So, let me start with my trading career.

I have used the last 3 years to learn a lot about Forex and trading, I have read more than 800 books on trading.
I have practiced 1,000's times in demos, to the extent that a few months ago it was finally become profitable.

Than, Live account, and finally after 4 weeks, I had lost 70% of the $1,000 account.

Now, I don't trade for the last 3 months as I am afraid for even look at the money on the live account, I am just re-learning all.

I found this forum from my google's searches.

I have tried to trade Using M15 M30 and above with no luck, but I am prety confident using tick, M1, and M5.

I just love Scalping M1, and M1 or below is where I feel more comfortable trading.

I would like to know if one of you could help me to get starting with your simple trading.

I looked around your site, download a few things about TRO BuyZone, Milking The Cows, and Rat. But I feel confused.

After 2 months looking elsewhere, i came back to this forum just to give another try, but this time with your help.

So, the question.

If I do not know a thing about TRO stuff, where and what is the easy way to start reading? (something that has examples, images, trades, etc)


Thanks in advance to all that help, Gen.
Last edited by genlogins on Mon Jan 10, 2011 9:11 pm, edited 1 time in total.

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bredin
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Postby bredin » Wed Sep 15, 2010 11:32 am

Drain the banks like a rat!

http://kreslik.com/forums/viewtopic.php?t=2095

G.
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bredin
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Postby bredin » Wed Sep 15, 2010 11:35 am

Drain the banks like a rat!

http://kreslik.com/forums/viewtopic.php?t=2095

G.
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Postby xtremeforex » Sun Sep 19, 2010 1:09 am

You have to understand....All you need is a horizontal line..

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genlogins
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Postby genlogins » Sun Oct 10, 2010 9:35 pm

Xtreme, what do youi mean horizontal line?

Resistance and support?

g
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Postby bredin » Sun Oct 10, 2010 11:32 pm

gen try putting a horizontal line at the price you see when you first open your chart.

Trade only away from this line.....

that is just an arbitrary place to put your line, for the purpose of education... worry about putting your line at S/R, S&D, FC, RAT or any other place later...

G.
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Postby adaseb » Mon Oct 11, 2010 12:07 am

My advice to you is to learn how to trade on longer timeframes first before trading the M1.

Your probably of success is higher and you are presented with a bigger risk/reward.

Mightyone has a good strategy posted on this forum called Blind Mice, I would give that a try.

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Postby ZEN » Mon Oct 11, 2010 3:49 am

I am new and I'm a beginner and I'm not qualified to give any advise but...even for a devotat rat like me and a devoted scalper what I am the 1M time frame is to short.
I usualy use H1 and I chek with M15 and M30 and H4.

Finaly, trading is all about your-self, about winning against your own shortcomings. If you are afraid of losing then you will lose.
Don't be afraid of anything.
All you need is just to learn to control yourself. Don't get involved, don't fall in love with your money and your trades. Be detached, don't get involved and be patient.

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Postby TerminalIndicator » Mon Oct 11, 2010 7:20 am

Gen,

You've already spent three years - those were not wasted years. That was part of the "price" of your Education about how to first survive, and to second, thrive in this business.

The secret to this business, is that there is no secret to this business. There are Principles, to this business, no different than any other business. The most fundamental Principle that you can learn about this business is summed up in one word: Magnitude. Not to be confused with Volatility.

The markets revolve around four (4) points of interest to you as a trader:

The Open
The High
The Low
The Close

Duh, what's new about that? Not a darn thing, that what's "new" about that.

Thus, all you need to do, is develop a fundamental understanding about the degree of magnitude that surrounds these four points, across multiple bars and across multiple time frames. Once you understand the connection between both Price and Time, you will have taken a quantum leap ahead of more than 95% to 97% of all private traders in Forex. And, that will be absolutely true, because the vast majority of them, don't have the slightest clue about the same.

800 books? I, quite frankly, had no earthly idea that such a large number of books had been written for the private trader. At a cycle rate of 800 books on the subject, you absolute know what the 95% to 97% who fail, already know. By the same token, you should also know what not to do after 800 books, as well.

Understand this crucial fact: In order for the market to exist, the market most move. Your first responsibility as a trader, is to learn how the market likes to move, which in turn will tell you why the market is "about" to move and by general definition, in what direction the market is about to move.

70% draw down? Heck, you are blessed. I blew retail accounts on three separate occasions right down to zero before I learned how to swim in this business - so you should look favorably upon your remaining 30%. Before you go off trying these suggestions being thrown at you like so much rice at a Wedding ceremony, the very first thing you might want to consider has nothing to do with the act of trading at all.

Sit down with pen and paper. Ask yourself WHY you are in this business to begin with. Then take the pen and write down a number. That number will be the total amount of money you desire from this business. Some only want an extra $1,000 at the end of the month to help with some bills. Others are trying to build Billion dollar account profiles across multiple accounts. Somewhere in the middle of all that, resides YOUR own personal goal. Write that number down - that's YOUR number and your number only. Don't let anyone take the number from you, or cause you to believe that YOUR number is somehow flawed. Your number does not belong to anyone else and it most certainly is not a number that you should SHARE with anyone else. It is a private number, one that you know will take care of your own private financial concerns.

Now, you are ready. Take your number and divide it by the number of Years that you are willing to work in this business. That is the amount you need to net each year. Take that number and divide it by 12. That's the amount you will need to net each month. Divide that number by 22. That will be the number you to net each day (on average).

Now, take that daily cash value number, figure out what money management (risk profile) suits you best, including the leverage required each trade (on average), lot size, per trade costs, etc., and calculate the total number of pips you will need each day to arrive at the daily cash value number.

Now, you are starting to think like a real trader and whether you know it or now, without graduating from any School of Economics, you just created what's called an Economic Model, with everything you need to move forward. Now, it gets really interesting.

Trades come in all different sizes, shapes and colors. Most importantly, they all have a minimum pip expectancy for Max Draw and Max Gross pips per trade. Some will generate an average of 3+ pips per trade net each day, while others will generate 30+. Take the daily pip requirement that you calculated above, and divide that number by N. N, represents the total number of trades you will need that generate X, as the minimum number of net pips per trade. X, will vary from trade type to trade type, not all trade produce the exact same number of pips, or have the same Draw.

This will give you a nice round number of total trades that you will need to execute on a daily basis, each producing the minimum X and each resulting in acceptable Draw (according to your Model above). It is always a good idea to slightly increase, or over estimate this final number, as you may need to place 1 or more extra trades on any given day, or any given week.

Example: You may find that you need to execute and close out successfully on 3-5 trades, each netting a minimum of 5+ pips per, in order to attain your daily, weekly, monthly and annual capital requirements (depending on the structure of your own Economic Model - goals).

Armed with this information, you are in a far better position to start looking for certain kinds of trades to make. This forces you to trade with a purpose and not with random ("reckless") abandon.

Establish the "goal," first. Then you have license to begin looking for certain kinds of trades that have a high degree of probability for attaining that goal (step-by-step). The vast majority of traders fail to do this, and this is one really good reason why so many of them are failing.

Simply refuse to be one of them, by knowing why you are in the market to begin with. This will also help to keep your emotions under control.

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genlogins
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Postby genlogins » Mon Oct 11, 2010 8:09 pm

thanks a lot guys, that helps.
G
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