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RE: How I lost $10,000 in 5 Days!!

in #trading7 years ago

I had a similar experience when I began trading 3 years ago - make a little money the first few trades, start risking larger equity % on trades to make more, end up losing more, then risk even more to make it back. The lesson to learn from that is that trading the markets isn't dangerous, WE are dangerous in our actions while trading.
I am successful trader now because the only alternative I had to giving up was getting smarter about the way I traded and approached trading. Trading is simple, and eventually easy. Firstly, math doesn't lie and you must concern yourself with the math of your trading to succeed. Secondly, other individuals have succeeded at it so you can too. ALWAYS risk less on a trade than you stand to profit. Risking $1 for $2 you can win only 33% of the time and still break even. Use only 1 or 2 strategies for determining buy/sell entries. BUY LOW/SELL HIGH at/near support/resistance, trendlines, fibonacci levels. Put your stop loss beyond a recent high/low/ support/resistance, or trendline. Don't load your chart with indicators, they are only an interpretation of price action - use 1 or 2 maybe.
Most people give up on trading after going through the ups and downs initially, but I've always been determined to succeed at it because it literally is a dream job when you establish yourself as consistently profitable. You can go anywhere in the world with an internet connection and make money at any time (with 24hr markets), with a continual pay raise by compounding interest, and profit during economic recession/depression, while experiencing the benefits of tax write-offs for business expenses. The greatest thing about trading to me is not the return on my money, but the return on my time.

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Good for you @prosperous, you are a better man than I! Also I didn't tell the entire story, the ultimate reason I stopped trading was the stress and to spend more time with my kids.

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