A Trader's Journey (Journal)

[ForexGuy]

OK, I am beginning a journal to keep myself honest. To maintain a sense of accountability.

My forex trading career began with OANDA on 16 March this year with a balance of AU $1974.67 (was 2k but whittled down thru the TT process). As of today my account is at $434.79.

Why have I lost so much? Predominantly, I let my losers run WAY too long.

Hopefully, commiting to post here will help me keep disciplined.


My method will at first be largely informed by the system detailed in Simplicity is the ultimate form of sophistication ( Elite ) , using 15 minute charts on majors. I've read that forum for a long time and I'm extremely intrigued by his new thread.

However, I've read Nick's e-books and watched some of his vids. I've also read a lotta stuff on various forums etc. So other approaches will no doubt be reflected in my trading.


I may say that I don't intend to deposit ANY more cash into my OANDA account. If I lose everything in it I'm done with forex and must consider it an interesting learning experience.

If I disappear and compeletely stop posting you can assume I've blown up my account!


FIRST TARGET: RECOUP LOSSES (BRING ACC BAL TO 2K)


Comments / tips / feedback very welcome.



PEACE!

[Fetor]

ForexGuy, glad to have you here.

My first thought after reading your post was, take a break from trading immediately.

If I may be frank with you, it appears as though you have done what myself and many others have done with their first experience with the forex market and that is this notion that you can profit big and quick and get wealthy in a short period of time. If you are not going to be able to be patient and see that your return to 2k is going to be a long process, taking into account you've been trading only 2 weeks, then take your remaining money out so that you at least leave with something. I'm not saying this to be mean or negative (I'm really trying to give you good advice), but if you're going to conclude that this last 400.00 is all you're going to invest in learning to trade this market then it's going to be really hard for you. I would strongly suggest you come to grips with the fact that it is going to take you many many many months, and since you just started, maybe up to a year to get that back using proper money management. It takes the average trader a lot of practice and time. Maybe you're above average and will turn things around quickly. I believe if you do some extensive study and follow Nick's methods you can do it. But, if you blow your account, don't give up, you can do it, it just takes time, effort, and self-control. I hope this does not discourage you, just trying to shoot straight. Good luck to you.

[ForexGuy]

Thanks, Fetor.

My current balance: $280.97

I'm OUT. Sorry this journal was so short! I'm looking at my options at moment. I definitely wouldn't deposit any more till I could prove consiistent profitability on demo. Regardless, as a buy and hold stock investor, this rather costly experience has given me a new perspective on the world economy.

Reason for failure: overall, boils down to poor discipline

I leave it up to mods what to do with this thread - whether to delete it or not. This may have some value, though, for others. Please: don't jeopardise more funds than you can afford to lose. I certainly believe serious money can be made in this area, but, for any newbie reading this, just be careful. I think the secret to success lies in a level of focus, and yet emotional detachment, that I just can't give at the moment.


PEACE

[Fetor]

Sorry to hear about your losses. I think you'll be back though....you've got the forex bug in you now.

[NickB]

Originally Posted by ForexGuy

Thanks, Fetor.

My current balance: $280.97

I'm OUT. Sorry this journal was so short! I'm looking at my options at moment. I definitely wouldn't deposit any more till I could prove consiistent profitability on demo. Regardless, as a buy and hold stock investor, this rather costly experience has given me a new perspective on the world economy.

Reason for failure: overall, boils down to poor discipline

I leave it up to mods what to do with this thread - whether to delete it or not. This may have some value, though, for others. Please: don't jeopardise more funds than you can afford to lose. I certainly believe serious money can be made in this area, but, for any newbie reading this, just be careful. I think the secret to success lies in a level of focus, and yet emotional detachment, that I just can't give at the moment.


PEACE

Losers give up.
Winners keep trying until they get it right.

In short, don't give up!

You made a mistake from the start investing so much money as a newbie. You should have put $50 in a micro account and traded that until you started getting consistent profits.

[4ow4ow]

Originally Posted by ForexGuy

I'm OUT. Sorry this journal was so short! I'm looking at my options at moment. I definitely wouldn't deposit any more till I could prove consiistent profitability on demo. Regardless, as a buy and hold stock investor, this rather costly experience has given me a new perspective on the world economy.

I'm sorry to hear about the loss, ForexGuy.
Yes, bro. It's different. In stock trading, you can hold the losing trade, that due to stock's leverage is very small comparing to Forex world. A leverage is a two-eyed knife, -I stab on you, or you stab on me-. The greater leverage, the longer the knife will be. Yes, you may multiply your deposit, but other chance you will lose mostly of your account.

Red pips=left margin.
Green pips=Unlimited.
Leverage is killing our margin.

Bigger leverage is unfair for a small deposit who'd been limited by brokerage for trading 0.1 std lot minimum. That's why many people traded the mini or micro lot.

In your virgin circumstance in Forex, I think most important stuff is to survive the money. You may had many losses in the journey, but in return you will gain experiences, sharpening your trading skill, maturing your reading about market's psychology, etc etc, in the end, it's about how we look after the margin for not being damaged heavily.

But this is the hard part, since you'd get used to hold in stock, this could be a big obstacle for you in Forex with bigger leverage. I had also been there too, I know how your feeling was.

In stock, you may throw almost all of your money inside, and let it shaken up or down, and not worry too much -because the percentage of P/L was small, due to minor leverage. But not in Forex trading, it's different. Red pips in Forex may easily reach your left margin. For some MT4 brokers, red pips = left margin + used margin (total margin). The bigger the Forex leverage you choose, the bigger margin you have to preserve for the margin's breath, and more easier for the margin called.

My suggestion is: Use mini lot, trade it long term. Once you had get used to it and know how the big frame behaves, and made profit constantly. Then you may start again with standard account.

Other important stuff is to trade it constantly. Forex "big leverage" trading is not quick rich scheme, you had to earn it like arranging puzzle pieces.

This is only my suggestion, it's up to you.