Biggest Challenges You Experienced in Trading?

itglive

Newbie
4 0
It is very difficult to bear the money loss. After losing money in trading, it is very difficult to prepare our mind positive and restart the game again.
 

Beast45

Junior member
31 4
It is very difficult to bear the money loss. After losing money in trading, it is very difficult to prepare our mind positive and restart the game again.
Agreed! That's a tough situation, but one who learns to overcome such a phase, goes long in this game :)
 

MichaelJohnFX

Senior member
2,888 321
For me, it's the drawdowns (months). Those can be hard, regardless of how long you've been trading for. There's not really much you can do different except from stick to your system. It helps when you've got a significant secondary income too e.g. a job or a business
 

MichaelJohnFX

Senior member
2,888 321
Time and again I have failed to follow my own rules - in one of two ways usually. When I've been winning, I have increased the % capital risked per trade way too quickly. When I have been losing I have ditched the strategy too soon and tried to develop a better one.
Re. increased capital per trade, I've found increasing it incrementally after a set period. For me, I review quarterly sometimes even every 6 months. How have you dealt with this?
 

tomorton

Legendary member
8,395 1,338
Re. increased capital per trade, I've found increasing it incrementally after a set period. For me, I review quarterly sometimes even every 6 months. How have you dealt with this?
My rule is that every trade is of standard risk percentage - i.e. the % risk is fixed at 1%, being the maximum capital that could be lost if the initial stop-loss is hit. For me this is continuous, so tomorrow afternoon it would be a different amount in £ than tomorrow morning. But I have ignored this rule at times so that either the positions are not large enough or the risk exceeds the 1% ratio.

Having a e.g. 6mth lag between risk reviews and amendments might not be a bad idea.
 
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MasterOfCoin

Experienced member
1,228 478
To remind myself to keep the amounts risked on each trade in check, I keep tally on the average profit of each winning trade over the previous 6 months period. This simple exercise tells me just how many successful trades will be needed to cover a given stake at risk should it result in a loss.

Believe me, when you're looking at needing 2 weeks worth of good trades to cover one bad one, you think twice.

:unsure:
 

MichaelJohnFX

Senior member
2,888 321
To remind myself to keep the amounts risked on each trade in check, I keep tally on the average profit of each winning trade over the previous 6 months period. This simple exercise tells me just how many successful trades will be needed to cover a given stake at risk should it result in a loss.

Believe me, when you're looking at needing 2 weeks worth of good trades to cover one bad one, you think twice.

:unsure:
I'm not sure which broker / platform you use, but IG have an excellent trade analytics tool that does this all for you.
 
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