Forex

Everyone always says this will never happen to me......... but there is that one time when the trade just looks to good to pass or one of those time when we become a overly self-confident SOB and the next thing you know its a margin call. HELP!!!

well i am interested to know how other people recover from a loss like that.
I found that it is really hard to trade from that point, keep second guessing my signals, afraid to take the risk again, exiting trade early in a scalper like fashion with out as much of the profit!!!!!!

review your system, take check on your emotions, go back to demo trading until you gain confidence and develop a good MM system.

Without Money managment, you're dead in the water.

Bad trades are part and parcel of trading, they happen, but 1 trade should never wipe you out, this is where your MM system will save you.

If you continue to lose after 1 bad trade, throw in the towel for a day or 2, sit back and watch, examine and re-learn, so what if you went the right way for 200 pips and you were in demo, they come and go, thats the nice thing about the forex.

Good morning,

I DO sympathise with you as this has happened to me more times than I care to count (last year anyways) and I'm talking in the region of $60K - $70K of REAL (not demo) $$$. How do you recover? By finding 'something' that works consistently and allowing yourself to build faith in that 'something' AND by NEVER GIVING UP. I, like you have now done, overtraded my accounts ALL the time and this, coupled with 'somethings' that did NOT really work, resulted in these huge losses. I WAS fortuanate in that I had the resources to keep 'ploughing' $$$ into trading UNTIL I found 'something' that consistently works FOR ME BUT EVEN NOW having 'something' that consistently works FOR ME (consistently for just over three months now) I STILL find myself 'doubting' my 'something' BUT I have learned to become 'emotionless' (well almost) and trust my 'something' blindly and once you arrive at this point you've ALMOST recoverd!!!

I am not sure just how far you are into this business but if you intend to 'stick it out' and are VERY serious about it then I suggest you buy a book called 'Mastering The Trade' by John F. Carter and read it and read it and REREAD it until you're feeling better. The important chapters in the book are not so much his trading systems (which I don't use) but the sections on 'trading pshycology' and 'who gets burned and why' etc. etc. etc. It WILL change your attitude toward your trading and make you feel better (believe it or not) about the mistakes you have made so far in your trading simply because you will at least UNDERSTAND WHY you made these mistakes in the first place. Then you're ready to move on to 'something' that works consistently to make profits here: Trading Systems in 'New Concepts In Technical Trading Systems' by J. Welles Wilder.

I would also strongly suggest that you also read this thread: Parabolic SAR - that's all! NOT FOR THE SYSTEM but it will take you on a rollercoaster ride of ups and downs that I and many others experienced over the course of a year or more and the information contained in THIS thread you will NOT find in ANY book on trading!!! The thread IS 222 pages long currently and the books cost a little bit BUT if you're serious about trading for a living and are NOT HERE TO GET RICH QUICK because you've heard somewhere that this IS possible in this business then you'll have no problem reading 222 pages of thread and 'springing' the $$$ for the books!!! If you are not prepared to do EITHER then I (me personally) cannot help you any further.

+1 to everything said above. Very good ideas and thoughts.

I blew out my account and ended up selling my show car that I spent 3 years building to refund my account. That being said i'm back up on my feet and i'm making money! I just considered it my "tuition" for learning and i'm positive I won't lose that kind of money ever again. If you blew out your account you now have a priceless experience that should aid you in preventing it ever again!