How do you recover from a £25,000 loss....

[pboyles]

I won;t believe this SB price fixing hogwash until the evidence emerges - which should be easy surely? Surely all it would to catch them out take would be 2 charts side by side, one from the SB, the other showing the underlying - spot the difference and ring the SFA to collect your prize.
It's drivel pboyles.

We'll come back to this point when one of them gets caught, like we did when Gain and FXCM got fined millions for their FX antics.

 

[Splitlink]

True, i funded the account with £6,000, traded successfully up to £25,000 then lost the lot

I don't think that you require opinions from us. I think that you know.

What you are showing other traders is what happens to the psychological you when you do lose that much. You are showing others that it is possible to lose the lot and the feeling one has, when cleaned right out. Put as cheerful a face on it as possible but the fact is that you have to start all over again and, probably, without the same confidence.

I know that it is not easy to borrow money these days but, if you do have a credit line, whatever you do, don't use it. That is my advice to everyone who reads this.

 

[mrfigure]

As the winning trades were increasing the account, it put me in a position where i could increase the £ per point. This is one area where I failed, i should have been disciplined, but its easier said than done when on a winning streak.

 

[x4x]

If you were happy to let the market move 125 points against you, that should have determined risk.

25,000 divided by 2% = 500, divided by 125 (points) = 4 pounds per point.

 

[Masquerade]

I keep seeing this, but what's so special about 2%?

 

[the hare]

As the winning trades were increasing the account, it put me in a position where i could increase the £ per point. This is one area where I failed, i should have been disciplined, but its easier said than done when on a winning streak.

If you are on a winning streak, you should be increasing your position size, and you should be trading agressively. Having said that, its takes a lot of experience to realise when market conditions are favourable to the strategy you are using rather than just getting lucky

Your problem was trading far too large a position size. If you'd been trading at an appropriate size to begin with you wouldnt have made anywhere near 25K.

Its worth going back an determining what the equity high would have been if you'd been using a realistic position size (e.g risking no more than 1% per trade). If you've been playing the game where you hold losses and waiting for them to recover, work out what your PnL would have been if you'd taken losses when your MM stop was exceeded.

 

[the hare]

I keep seeing this, but what's so special about 2%?

I'll give you a clue, do some reearch into theoretical risk of ruin, then get out a copy of excel and plot some charts. It should be bloody obvious why people suggest 2%

 

[Masquerade]

I'll give you a clue, do some reearch into theoretical risk of ruin, then get out a copy of excel and plot some charts. It should be bloody obvious why people suggest 2%

2% is meaningless without knowing the risk. Why not 1%? Why not 0.76%? Why not 5%?

If I use 2% of my account on a trade and I use 10% of my account on a different trade. Which trade am I taking more risk with?

 

[the hare]

2% is meaningless without knowing the risk. Why not 1%? Why not 0.76%? Why not 5%?

If you KNEW you had a zero risk trade, you'd bet 100% wouldnt you ?. If you knew the trade was going to be a loser, you wouldnt bet at all !

I've already told you how to find the answer. I'm not going to do it for you

 

[Randomer]

take a break

 

[Splitlink]

As the winning trades were increasing the account, it put me in a position where i could increase the £ per point. This is one area where I failed, i should have been disciplined, but its easier said than done when on a winning streak.

Ok, so you increased your trades like that but did you have your account divided up into a certain number of trades? For instance, I divide my account into ten possible trades (I use Excel for this) in one column. In the next column I divide each trade into the number of points that I wish to risk on each trade. Each of my favourite instruments has a different margin and that has to be taken into account, too. Once done, though, it is a simple matter to enter the account amount into one cell and the margin in another and the amount per point that can be traded becomes apparent. Over that amount is overtrading, according to your criteria. I use 10 trades and 20 points per trade. I am confident that I can make money on those terms. Yours, and those of others, may well be different but, whatever it is, you will have a management plan in place and that is essential.

 

[Black Swan]

If anyone thinks brokers and SB's continually cheat their clients I have one question:

Why are you trading?

They don't, they're like the old hags that used to get up early to get the best spec at the guillotine, never take part just shout from the sidelines and occasionally get splattered..

 

[advfntrader]

you did 2 things wrong...

1. let your loss run (no stop)
2. position size too large for your account

if you had just done 1 of these wrong you might have gotten away with it.....but both combined = certain wipeout

I've done it numerous times before and I'm afraid there is NO ONE to blame but YOURSELF.

learn from it and NEVER do it again ;-)

 

[Masquerade]

you did 2 things wrong...

1. let your loss run (no stop)
2. position size too large for your account

if you had just done 1 of these wrong you might have gotten away with it.....but both combined = certain wipeout

That is the most vital the way I see it. As far as #1 that depends on the validity of the initial reasons for entering a trade. Taking a loss just because you are losing isn't correct.

 

[x4x]

2% is meaningless without knowing the risk. Why not 1%? Why not 0.76%? Why not 5%?

If I use 2% of my account on a trade and I use 10% of my account on a different trade. Which trade am I taking more risk with?

If you can so accurately predict the trade outcome, why bother with the 1% trades - best wait for the 10% trades?

 

[Masquerade]

If you can so accurately predict the trade outcome, why bother with the 1% trades - best wait for the 10% trades?

You completely miss the point with my last question.

 

[the hare]

Taking a loss just because you are losing isn't correct.

Agreed. You take a loss when you are WRONG.

 

[datum1m]

2% is meaningless without knowing the risk. Why not 1%? Why not 0.76%? Why not 5%?

If I use 2% of my account on a trade and I use 10% of my account on a different trade. Which trade am I taking more risk with?

Your risk is always determined by your SL based on your lot size, which in turn should be at least a 1:1 RTR with your TP target, so the bigger the lot the smaller the amount of pips before the SL is hit.

If you have a large account then you can trade without SL (no broker spikes and sharks taking out your position before the market moves in your favour), but to do this and leave trades unmanaged you need to allow a lot size (or a number of lots if scaling into a trade) that is equal to at least 1000 pips, this would then more than cover the daily range of most currency pairs.

 

[x4x]

I didn't miss the point, I ignored it because it is so bloody obvious - you have to stay in the game - trading at 100% or indeed 10% is not likely to allow this to happen over time.

 

[Masquerade]

I didn't miss the point, I ignored it because it is so bloody obvious - you have to stay in the game - trading at 100% or indeed 10% is not likely to allow this to happen over time.

*sigh* you missed a blatantly obvious question. Anyone who knows about trading would have asked me a question before answering that.

I give up here, i've contacted OP privately and he can do as he wishes with the information.