My cousin trading was half my money

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Old Mar 13, 2018, 10:28pm   #1
Joined Feb 2018
My cousin trading was half my money

I'm trusting my cousin because he's been studying the stuff for over 8 years and I'm just learning but right off the bat I see he's not using stop losses and he's not closing old trades that are green. A trade open since December 18th it's been red the whole time it's finally turned green and he hasn't closed even though I told him to. This makes absolutely no sense to me https://www.myfxbook.com/members/gd4...4xpips/2112796

Am I wrong what do you guys see wrong with this account just by looking at it
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Old Mar 13, 2018, 10:51pm   #2
 
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Get your money out or one day he’ll lose it.
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Old Mar 13, 2018, 10:55pm   #3
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Heyhi started this thread
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Originally Posted by barjon View Post
Get your money out or one day heíll lose it.
I'm not really worried about the money, both of us are trying to learn this and he knows a lot more than I do I'm just trying to understand why he's not closing an old trade that didn't work out. I don't want to push it with him because it's aggravating me. I'm new to this but I've been playing poker my whole life and that part of me tells me get the hell out of the trade that didn't work out as soon as you can and move on to the next. You're supposed to close while you're ahead. The other one that's up $24 I told him to close it last week when it was at 36 and I don't get the mentality behind it. We want to build the account so we could up the ante but he's not understanding that part
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Old Mar 13, 2018, 10:56pm   #4
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Heyhi started this thread Do you guys see problems can you guys go through this account please and tell me what you think
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Old Mar 13, 2018, 10:59pm   #5
 
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Originally Posted by Heyhi View Post
I'm not really worried about the money, both of us are trying to learn this and he knows a lot more than I do I'm just trying to understand why he's not closing an old trade that didn't work out. I don't want to push it with him because it's aggravating me. I'm new to this but I've been playing poker my whole life and that part of me tells me get the hell out of the trade that didn't work out as soon as you can and move on to the next. You're supposed to close while you're ahead. The other one that's up $24 I told him to close it last week when it was at 36 and I don't get the mentality behind it. We want to build the account so we could up the ante but he's not understanding that part
There’s plenty of people been seduced by the “hang on and it’ll come back into profit”. It works, then works again and again until the one occasion when it doesn’t and all that hard earned profit and more goes up in smoke.
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Old Mar 14, 2018, 12:05am   #6
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he's not using stop losses and he's not closing old trades that are green. A trade open since December 18th it's been red the whole time it's finally turned green and he hasn't closed even though I told him to. This makes absolutely no sense to me

A trade that had been in red but turned green doesn't mean it should be closed just because it has turned from red to green. Open trade management is a function of your trade plan.

The most problematic issue with your cousin is the three open positions with the EURUSD. It has gone unfavourable against the entry price by more than 1300 pips and if they were to be closed today would wipe out and much more all the profits earned to-date. Unfortunately failure to deal with open positions that are seriously in the red are very common and a major reason why traders eventully blow their trading account.

The conversation I think you need to have with your cousin is how he intends to deal with that particular EURUSD situation and more importantly how he intends to prevent future recurrence. Traders blow accounts because they cannot manage losses and if such a behaviour perpetuates then the eventual outcome is rather predictive and is only a matter of time.
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Old Mar 14, 2018, 9:42am   #7
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"Letís use EUR/USD as an example. We see that EUR/USD trades were closed out at a profit 61% of the time, but the average losing trade was worth 83 pips while the average winner was only 48 pips. Traders were correct more than half the time, but they lost over 70% more on their losing trades as they won on winning trades. The track record for the volatile GBP/USD pair was even worse. Traders captured profits on 59% of all GBP/USD trades. Yet they overall lost money as they turned an average 43 pip profit on each winner and lost 83 pips on losing trades."

https://www.dailyfx.com/forex/fundam...ders-make.html
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Old Mar 14, 2018, 11:39am   #8
 
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The problem with myfxbook is that is it easy to make an account look profitable when it isn't. The Gain figure of +20% is only the profit of closed trades.

Unfortunately you have $853 of losses on a balance of $2364. The important figure to look at is the Equity and the yellow line on the chart. If you were to close your all your trades today you will have $1511 in your account - you started with $2000 - so at the moment you have lost nearly a quarter of your money.

The profit of $400 or 20% is completely meaningless in this case. You haven't made any money at all.

The "hold on and hope it comes back into profit" approach doesn't work long term. Eventually you are going to have a large exposure either long or short and the market will move away from you wiping out your account.

8 years experience perhaps - but doesn't seemed to have learned much.
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Old Mar 14, 2018, 2:57pm   #9
 
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Can anyone be that ...... ?

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Originally Posted by Hoggums View Post
The problem with myfxbook is that is it easy to make an account look profitable when it isn't. The Gain figure of +20% is only the profit of closed trades.

Unfortunately you have $853 of losses on a balance of $2364. The important figure to look at is the Equity and the yellow line on the chart. If you were to close your all your trades today you will have $1511 in your account - you started with $2000 - so at the moment you have lost nearly a quarter of your money.

The profit of $400 or 20% is completely meaningless in this case. You haven't made any money at all.

The "hold on and hope it comes back into profit" approach doesn't work long term. Eventually you are going to have a large exposure either long or short and the market will move away from you wiping out your account.

8 years experience perhaps - but doesn't seemed to have learned much.
By some miracle the OP will suddenly become profitable and invite you all to subscribe to his wonderful method or to subscribe to his signals. Either that or the OP really is foolish ( see - I've toned my language down).
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Old Mar 14, 2018, 8:33pm   #10
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Originally Posted by Hoggums View Post
The problem with myfxbook is that is it easy to make an account look profitable when it isn't. The Gain figure of +20% is only the profit of closed trades. Unfortunately you have $853 of losses on a balance of $2364. The important figure to look at is the Equity and the yellow line on the chart....
thanks for pointing this out hoggums i didnt notice that, i had thought it looked good cos i only looked at a few of the stats!

Heyhi your cousin has shown a serious flaw in his trading ability here, to put it mildly. he has behaved like a retard in keeping the EUR/USD short position since May 2017! this not acceptable of someone who has been trading 8 years. you would have been better off picking a few trades at random and holding on to the winners or something. i would move away from collaborating with your cousin asap and learn by yourself
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Old Mar 20, 2018, 3:31pm   #11
 
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I would recommend you people to trade on your own money as it requires psychological strength which keeps you motivated towards the achievement of a goal. If you will give money to someone else and expect some profit then you are on a wrong way.
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