What should I do? Losing lots of money!

Discussion in 'Psychology' started by kqgone2da, Oct 23, 2009.

  1. kqgone2da

    kqgone2da

    I started trading foreign exchange futures at the beginning of the year. Until two weeks ago, I was up about 590,000. But the GBP (UK Pound) has been kicking my ass lately. I've made most of my money in GBP, but in just two weeks I've lost 107,000. Should I back out completely for a while, or keep swinging? I'm livid - short on the way up, then a big correction on the UK GDP # and the bot is getting me long. Can't win!
     
  2. varps

    varps

    Go and read some books on money management.
     
  3. You should have drawn a plan for this situation BEFORE you started trading.
     
  4. pcvix

    pcvix

    Would you care to mention the size of your original capital?
     
  5. Excellent advice. No trading plan...........you have no business trading.

    The pound appears to have entered a period of volatilty and uncertainty.
     
  6. sub0

    sub0

    Maybe you should reduce your size some until you feel confident again in your system. Possibly start withdrawing some of the funds and place them in less risky investments for peace of mind.
     
  7. gaj

    gaj

    obviously have a plan.

    but when others didn't have a plan, or was mentally unsure, etc. i had one bit of advice:

    GO FLAT / GET OUT / DON'T MAKE ANY TRADES.


    the market will be there next week. and in your case, unless you're prepared for large drawdowns (ie. turtles), giving back 20% of profits this late in the year is unacceptable.
     
  8. bone

    bone ET Sponsor

    A position sizing plan and a business plan really helps.
     
  9. Exit, get your mind straight and re-examine the situation if, need be you can re-enter.
     
  10. Read the book Fooled by Randomness.

    You are just fooling yourself by pretending you can find an order in highly random data.
     
    #10     Oct 25, 2009