Recently I lost almost 20% of my trading capital. It was for my greedy. But nowadays I am feeling afraid to trade on big lots. Suggest me please experienced traders.
How can I recover from loss?
- Thread starter Marie J Thomson
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Losing 20% of your capital is a harsh blow to both your finances and your emotional state. Recovering from the loss should not be any different from normal trading. If you believe that your strategy is still overall good and that the reason for the huge loss was due to not trading strictly by the strategy, then it is better just to forget about the loss and continue to trade your strategy but this time without deviating from your trading plan. On the other hand, if the strategy is to blame, you should probably return to demo trading first and to modify and backtest the strategy to make sure it is working again.
there are many things that can affect when we trade, over lot is one of them, the comparison between lots, margin levels, levarage, and capital of course we have to consider,
a small example if you deposit with a capital of $ 10, maybe you will get a big profit with lot 0.1, with a resistance margin of only 100 pips. while movement in a day or even hour can penetrate 100-500 pips.
Only 20%. Sounds like you are pretty disciplined. Most traders lose 100% several times before giving up or smartening up. If you have found your system, or your edge, just trust in it and stick to the plan. You will recover your 20% and more. If you have not found your edge then only trade a small account, keep learning and experimenting until you do find a system that works for you. 
Hi; did you lose that amount by a single trade? If yes, then of course; your trading plan was wrong! Never & ever take more than 2% risk in a single trade.
20% loss is a big blow, I hope you'll recover soon to continue trading. If you lost all that in a single trade, then you did a big mistake to risk that much. If you are sure that your strategy is perfect and you were simply greedy, get up and trade without greed now. If not, take a break and test your strategy on demo first before resuming real trading
nothing to add. totally agree with youOnly 20%. Sounds like you are pretty disciplined. Most traders lose 100% several times before giving up or smartening up. If you have found your system, or your edge, just trust in it and stick to the plan. You will recover your 20% and more. If you have not found your edge then only trade a small account, keep learning and experimenting until you do find a system that works for you.
Only 20%. Sounds like you are pretty disciplined. Most traders lose 100% several times before giving up or smartening up. If you have found your system, or your edge, just trust in it and stick to the plan. You will recover your 20% and more. If you have not found your edge then only trade a small account, keep learning and experimenting until you do find a system that works for you.
That is great advice in a nutshell.
All I would add is sometimes a mental break away from trading (a day a week whatever suits) and get back to it refreshed and focused.
A great move; that would be really helpful for sure. In addition, I hope you’ll be more careful on your live trading mistakes.
I really appreciate your opinion on the risk reward ratio; in my trading I don’t go for more than 2% risk; never and ever; that’s my formula.
I agree with Enivid, you must not focus on how to recover instead be normal and learn from mistake. Moreover, don't trade on big lots (which is more of gamble behaviour and lack of risk management), rather trade in such a way that it's consistent, that should help. Now just kick the greed and big profit expectation out of your room. Be a real trader.
I agree with Enivid, you must not focus on how to recover instead be normal and learn from mistake. Moreover, don't trade on big lots (which is more of gamble behaviour and lack of risk management), rather trade in such a way that it's consistent, that should help. Now just kick the greed and big profit expectation out of your room. Be a real trader.
Nice to see, you are conscious on your trading lots size! Basically, money management is the key! Without following the proper money management rule; the path is so much sticky.
2% is exactly the same for me.
New traders are often tempted to change and alter things based on how good they think the trade is, which is a dangerous game. You must stick to the plan and not alter such things such as risk % impulsively.
I am also using 2%. Somehow it is my optimal risk level. I have discussed with some other traders who are using 5%. Anyway, different traders have different approaches to capital management. As long as you are continuously pursuing this technique, percentage amount is relative
7 Steps to Recovering After a Business Failure
- Accept failure happened and learn from it.
- Actively decide to change.
- Prioritize the tasks that lead to change.
- Have a mentor direct the makeover.
- Move outside your comfort zone:
- Align yourself with the right people:
- Keep an eye on your finances.
For a successful trading career you have to work step by step first learning , create a plan , focus and stick on the plan and make sure its accurate and according to the risk management aspects just pause after loss gear up again find out the mistakes and trade with confidence
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