Trading Losses - Why It's So Hard To Get Back To Breakeven

One of the money management basics - but largely misunderstood by many novice traders. Essential knowledge

Category:

Howto & Style

Tags:

• trading
• money
• management
• risk

[yshahnawaz]

I am a novice trader just practicing on demo accounts. your videos have really helped me to understand and i have become a big fan of yours i agree with you a 100%. usd/jpy the last resistence was some where in feb this year somewhere near 87. then in recent months we have seen resistence at levels of 93.

[YourTradingCoach]

Hi yshahnawaz,

Thanks for your comments. I'm glad you've enjoyed the videos.

Unfortunately I'm not licenced to provide financial advice, so I can't comment on any current analysis.

My services at this time are purely educational.

All the best,

Lance.

[085693439999]

is warren buffett use candlestick in his investing style?

[YourTradingCoach]

Hi 085693439999,

No idea whether Warren Buffett uses candlesticks or not. That's really a question for Warren Buffett, not me.

Essentially We're both operating in very different businesses so I could pretty much guarantee that WB's analysis techniques vary considerably from mine.

Still, whether one uses TA with price bars, or candlesticks, or FA, or any other analysis methods, it's important to remember that it's really a very small part of the game.

Cheers,

Lance.

[battousai5000]

I ment that the key is probably to know how to lose less :)

[YourTradingCoach]

Hi battousai5000,

Absolutely. Preservation of capital is of vital importance. If you can learn to lose well you (hopefully) save yourself from having to fight back from a large drawdown.

Happy trading,

Lance.

[masterpatric07]

I STARTED WITH 10.000 I LOST MORE THAN 50 % OF MY ACCOUNT, AND NOW I AM TRADING VERY CONSERVATIVE 2 CONTRACTS, AND MAKING PROFITS OF 150 OR 200 DOLLARS AND CALLING OUT FOR THE DAY.NOW MY ACCOUNT IS $5.600 AND GROWING.DO NOT TRY TO GET RICH IN A DAY IF YOUR ACCOUNT IS TOO SMALL., GO SLOWLY.AND INCREASE YOUR CONTRACTS AS YOU DOBLE YOUR ACCOUNT.LESSON LEARNED.

[yshahnawaz]

i have also subscribed to your news letter, i intend to learn from you do you offer some online courses or do you have a platform where we may be able to discuss market trends and possible trades. thanx

[yshahnawaz]

Wat do u consider the real resistance level the recent ones or the one in feb.

I have entered for buying yen at 90 stopp loss at 86 as more people may be using 87 and that means market makers may use it to there advantage. its just been a wek i have started trading and i have made 3000 dollars although in paper currency, but has boosted my confidance and i am entering a long term trade for the first time.

Please give your comments on my analysis and strategy.

[YourTradingCoach]

Hi battousai5000,

Thanks for your comment. I'm not sure what part though your referring to when you say it changes from one trader to another. The concept of a greater percentage profit being required to overcome a drawdown is a mathematical fact applying to all traders. Hence the importance of risk and money management.

Of course, the ability to successfully manage a recovery will vary from trader to trader.

Please comment again if I've misunderstood your statement.

Happy trading,

Lance.