The 2% blues.
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Thread: The 2% blues.

  1. #1
    I'm, what most would consider, a rookie trader. I started to get into trading forex in about January. I did everything I considered great for about two weeks. The I hit the phenomenon where I held sway over the worlds markets. No matter what trade I put the markets will instantly turn around and go . I even considered calling the chairmen of World Banks to contract together to suppress or enhance their markets by simply placing a small trade. I eventually got past that obstacle.

    Now I have what I call the two% blues. I cannot get above 2% under where my account started. As an example, if I start a new $5000 account, I'll make a few of winning transactions and then a big loss that will put me under where the account was opened. Then my wins and losses hold me at 2-4% under opening balance. Hopefully I broke this now as I pulled into the and side of my account by roughly 7 percent. I'm not actually asking for any help I'm simply sharing a fascinating mental hurdle that I have.

    Does anybody else have any interesting mental challenges they have, had or need to conquer?

  2. #2
    When I first began trading, I believed it was about how nicely my account went, and how fast I can push this up.

    The harder I pushed, the more I lost...

    Anyways, after some time I realised it was about cash management, and cash management is the secret to maintaining your account afloat and to progressing.

    ....

    One suggestion is to utilize the power of compounding for your account. By way of example, dont commerce in lot dimensions, but in a percentage to your account. I.e. Trade 2 percent of your account total at one time, instead of a 10k lot at one time. This way over time your account will grow exponentially.

    What I really do is commerce 2% of my account total from the start of the month - state 2 percent of my account total is equivalent to 50 lots, and then attempt to do with the simple principle, of:

    Pips gained gt; pips lost.

    Then in the end of the month I appraise my account size, and then for the start of the next month, I recalculate what my new 2% alloion would be in relation to lots. And repeat the method all over.

    More significantly stick to a system which will ensure the above, method of gaining more pips than that which you lose. Make sure your system incorporates a successful money management plan, that outweighs benefit with risk. Than your sure to understand your equity curve grow exponentially over time!

  3. #3
    Ha

    so true

    in the panel in the recent expo, all of those guys manage millions, and they only use.5 to 1%

    I would risk more on greater likelihood trades with a high risk reward tho. Occasionally even as large as 10, but thats quite wild and I'll just stick with my 5 max

  4. #4
    Thank you for the help guys. I will try out the 1-2percent of my account system of cash management. I believe I'm pretty much ready to begin trading since most of my losses are because of risky trades that I would not do with real cash. But as it is a demo account I've got nothing to lose. It's sort of a trial and error type of thing.

  5. #5
    One of my friends began a forex account with a minimum $300, where later wire fees, were decreased to around $270....He traded for 3 weeks, which makes it up to $480, around 77% gain, and then on the 6th of October 2005 (The afternoon where Egypt celebrates it is victory against the Israeli army in Sinai, ), he dropped them all (Almost) and his account stood at about $80, blowing everything up in a few hours....

    I met with him late at night on such afternoon, and he told me about his experience and how he awakened days and days of hard work only because he had been convinced that the Euro has to decrease on that day, while it actually went up about 240 pips. . .He stated that he is now convinced He Can actually Earn Money in the forex markets


    Thanks,

    Nader

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