Do I Have to Accept some Big Losses in the Beginning?

This is a discussion on Do I Have to Accept some Big Losses in the Beginning? within the New to Trade2Win forums, part of the Reception category; Part of being a trader is having the ability to accept your losses and move on. Simple Also if you ...

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Old Aug 14, 2012, 5:43pm   #33
Joined Jan 2012
Re: Do I Have to Accept some Big Losses in the Beginning?

Part of being a trader is having the ability to accept your losses and move on. Simple

Also if you have prepared before you trade you should already know what risk you have and already come to terms with it before you place the trade. Comes in time though.

Last edited by timsk; Oct 4, 2012 at 5:59pm. Reason: Monthly housekeeping
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Old Nov 29, 2012, 8:48pm   #34
Joined Nov 2012
Re: Do I Have to Accept some Big Losses in the Beginning?

being an economist by training, i lean toward our default position of 'yes and no'

no, with proper limits, hedging and stop losses, you do not need to take large losses from trading before you start to see profits.

yes, it is very common to not lose because of the trade, but because of getting margin called. for example, if you have an options strategy and you suddenly get assigned on one of your options, that can change your margin requirement completely and put you in margin call.

i would recommend that for any strategy requiring margin, especially with options. that you start small for awhile to minimize the risk of bad surprises. i've seen it happen to very smart people.
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Old May 29, 2013, 2:20pm   #35
 
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Re: Do I Have to Accept some Big Losses in the Beginning?

Nope never take the huge losses. How do you do that? Place reasonable but tight SL's as you open your trades. You can only lose that much.

Last edited by timsk; Jul 8, 2013 at 5:17pm. Reason: typo
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Old Jun 11, 2013, 6:59pm   #36
Joined Jul 2011
Re: Do I Have to Accept some Big Losses in the Beginning?

Huge losses are TOTALLY avoidable - absent a gap through your stop-loss.

Set your stop at a level that you feel is either technically relevant or represents a price that invalidates your thesis.

Risk 1-2% max per trade and you stand a far better chance at surviving. Even with wide stops, adjusting your lot size will keep risk at the 1-2% level or whatever level you feel is appropriate.
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Old Aug 29, 2013, 4:00pm   #37
Joined Jul 2013
Don't go for big one if you're new in trading. For God sake it's your money. Don't give your heart to rules over your head. Make sure you do research before you do live trading. The market can goes up as well as down. You can make money in falling marketing. So, open your eyes.
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Old Sep 3, 2013, 5:52am   #38
Joined Aug 2013
No, you don't have to suffer big losses if you have good knowledge and planning about trading. Patience is the other and you should control your patience during the trade.
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Old Nov 21, 2014, 11:29pm   #39
 
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Big losses in the beginning are preferable to big wins in the beginning, because the latter will delude you into thinking it was your great skill and not luck.

Get burned a few times, and you may learn to be more careful in future.
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Old Nov 23, 2014, 2:53pm   #40
Joined Mar 2014
No losses are not a requirement… but they will become the prerequisite if you're using any out of the box technical studies. So user beware, 99% are historically lagging and don't tell you where the prices are going.. only where they have been. What makes it tougher is that because of this lag your losses aren't cut short until many many pips in drawdown.

When I place an entry, I don't use a stop loss that's absurdly far away from the market… you can't expect a 50 pip spike in your direction if your timing is off so why use a 25 pip or heck.. a 10 pip stop?

My stops are 2 to 5 pips and are only hit 6% of the time. But then again.. I use no historical indicators… get rid of macs, stochastics, even fibonacci numbers are junk here.. Get into real time and sweat less.
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Thanks! The following members like this post: MajorMagnuM , Forexmospherian
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