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Discussion in Psychology and Money Management

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  #1 (permalink)
Firon47
Barnaul Russia
 
Posts: 1 since Oct 2024
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Hello everyone, I've been watching videos and charts for a year, I put money on a real account, I decided that my time had come, the total deposit was $300, I started trading and the monster in my head started playing and told me "increase the deposit", and I didn't lose $300 at once, but in parts I even managed to make $100 from $5, when I reached $100 I just went crazy and entered anywhere just to multiply.
On the demo I was always in the black, I entered according to the strategy, but on a real account I enter anywhere with max leverage
I don't know what to do now, let go of this money and calmly start trading $100 until the statistics become positive, and only then think about increasing the volume
It's just that when I lost a small part of $300, I wanted to win it back, throw in a little more and so on over and over again, I won it back and multiplied it, but then I immediately lost it, it was a casino game


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  #2 (permalink)
 tr8d3r 
Sydney+Australia
 
Experience: Beginner
Platform: NinjaTrader + daytradr
Trading: futures
Posts: 121 since Feb 2014
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Firon47 View Post
Hello everyone, I've been watching videos and charts for a year, I put money on a real account, I decided that my time had come, the total deposit was $300, I started trading and the monster in my head started playing and told me "increase the deposit", and I didn't lose $300 at once, but in parts I even managed to make $100 from $5, when I reached $100 I just went crazy and entered anywhere just to multiply.
On the demo I was always in the black, I entered according to the strategy, but on a real account I enter anywhere with max leverage
I don't know what to do now, let go of this money and calmly start trading $100 until the statistics become positive, and only then think about increasing the volume
It's just that when I lost a small part of $300, I wanted to win it back, throw in a little more and so on over and over again, I won it back and multiplied it, but then I immediately lost it, it was a casino game

Hey Firon47,

Posts like yours comes very often on this forum. So let me try my best to break it down.
In my humble opinion, first thing that needs to be realised in your situation is: You are under capitalised. My guess you are trading FX because $300 dol is simply not enough to trade futures. None of the traders can execute 100%. Your starting point should be check your statistics of your trades and you should see how many trades will take you to loose your 300 dol. Next thing you mention is leverage. Leverage can be good but it can also cause an account to disappear with a blink of the eye.

The monster in your head wants to see a dollar sign and double the account every week. I don't know anyone who would say no to free money. Your thinking process as well as focus needs to change. When you are saying 1 year watching market is it 15 Min a day or it is 10 hours a day. It make a huge difference. You need to stop thinking about money and focus on the process and be comfortable not to take a trade if you do not see your set up. 90% of the time you just want to get into the market for no reason. Tame that desire and execute only when you The TRADE you know by heart.

It may also be worth looking at recording of your trades, replay the market and identify what you are doing wrong and why. If you are using indicators you need to understand when the indicator is working and when not. Under what market conditions it performs and where it is not appropriate. Trading is like attending a university. Some students can finish 5 subjects in a term and some can only pass few. Everyone is different some learn faster than another. Be careful whom you watch on YouTube. There are many gurus there but they can't trade a all.

May be also make a move to Futures and find your Macro Instrument (ES, CL, NQ) that you will be comfortable with. it is 1.25 per tick. If you move to macro I would also allocate $1000 and only trade 1 macro contract. Do it until you can execute with a close eyes. All you need is to master 1 trade. The size can be increase later one.

The most important thing is to Love the game and enjoy the journey. There are many people start this journey and then realizing that it is very hard. If it was easy everyone will be doing it.

Good luck


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  #3 (permalink)
 
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 Bookworm 
Long Island, NY
 
Experience: Advanced
Platform: TOS
Broker: Charles Schwab
Trading: Equities, index options and futures options
Posts: 194 since Apr 2010
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Can you describe, in simple terms, the strategy you are using? Have you tested it to confirm it has a statistical edge? Trading is simple but NOT easy. You need to find something that has an edge and consistently apply it to the market. You need to have the discipline to follow your system but also recognize if that edge is no longer valid and find a new one. If you want to become one of the small minority that takes money out of the market, i.e. a professional, then you need to be prepared to do the kind of work that all professionals do to attain and maintain that status. It will likely take much more time and effort than you think.


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